Table of Contents POST OFFICE SAVINGS ACCOUNT:- TOP SEVEN DIFFERENT SAVINGS SCHEMES AT POST OFFICE IN INDIA 1. Public Provident Fund (PPF):- 2. Senior Citizen Savings Scheme (SCSS):- 3. Kishan Vikas Patra (VKP):- 4. Sukanya Samrudhi Yojana (SSY):- 5. Post office Monthly Income Scheme (MIS):- 6. National Savings Certificate (NSC):- 7. National Savings recurring Account (RD):- Share this article The post office savings account is a deposit scheme provided by the post office throughout the India.The post office savings scheme provides a fixed interest rate on account balances. It is a beneficial scheme for individual investors who wish to earn a fixed rate of interest by investing a significant portion of their financial assets. All post office savings scheme are give guarantee returns as they are controlled by the ministry of finance department of the government of India. One of the most well-known and very easy to access savings accounts in India is the Post office Savings Account. Both minimum and maximum balances that may be kept are Rs.500. The person may only open one account as a single account. The maximum amount that can be placed into a savings account is unlimited. POST OFFICE SAVINGS ACCOUNT:- The eligible individuals to open a Savings Account at the post office are as follows:- 1. Minors with a minimum age of 10 years. 2. The Guardian on behalf of the minor. 3. A person of unsound mind. 4. Two or three adults can open a joint account. 5. Group account, the institutional account can open a savings account at the post office. The following benefits you will get from Post office savings Account:- 1. Cheque facility:-Cheque facility is available and can request for existing accounts as well. 2. ATM/Debit card:-Those account holders maintain the minimum balance they are eligible to hold an ATM Debit card. 3. Minor Accounts:-Post office savings account is available for minors. Below the age of 10an account can be opened on the account but operate by the above 10 years old. 4. Portability:-if you shift your residence or you are not happy with the services of the post office branch or any of the reasons, you can shift the post office savings account to a branch of your office. There is only one account that will open at one post office. 5. Nomination:-Opening the account, the option to nominate someone is made available under these accounts. 1. Joint Holdings:-Under the joint account facility, two or three adults jointly hold an account. 2. Electronic facilities:-Customers can make withdrawal& deposit facilities through any electronic mode in the CBS post office. 3. Income Tax relief:- Income Tax relief is available on the amount of interest under the provision of section 80TTA. of the Income Tax Act. 4. Interest is Tax free:-Income of Interest from the post office up to Rs. 10,000 is free. 6. Single accounts can be converted to a joint account as and when required. 7. Interest Rate:-The central Government periodically determines the interest rate for post office savings accounts, which is typically 3% to 4%. 8. Post office savings account earns a fixed rate of interest annually, subject to changes from time to time. Presently the rate of Interest is 4%. 9. Deposits & Withdrawals:-Minimum deposit is Rs. 500 & Minimum withdrawal is Rs50/-.The maximum deposit is the No limit. TOP SEVEN DIFFERENT SAVINGS SCHEMES AT POST OFFICE IN INDIA 1. Public Provident Fund (PPF) 2. Senior Citizen Savings Scheme (SCSS) 3. Kishan Vikas Patra (VKP) 4. Sukanya Samrudhi Yojana (SSY) 5. Post office Monthly Income Scheme (MIS) 6. National Savings Certificate (NSC) 7. National Savings recurring Account (RD) 1. Public Provident Fund (PPF):- PPF ACCOUNT IS THE SAVING SCHEME OF POST OFFICE An Individual Resident Indian or guardian of a minor can open this PPF account at the post office. Minimum deposit is Rs 500/- but the maximum deposit is Rs1.50 Lakh per Financial year. Only one account can be opened all across the country either in the post office or at any scheduled bank in India. If in any financial year the minimum Rs. 500 is not deposited in the financial year then the account becomes discontinued. Interest shall be applicable as notified by the Ministry of Finance every quarter. Interest shall be credited to the PPF account at the end of each financial year. Interest earned from the PPF account is Tax-free under Income Tax Act, 1961. Only one loan can be taken after completion of the first year. The second loan will be not permitted till the completion of the first loan. The PPF account will mature after 15 years (Financial Years).In case of the death of the account holder, the account shall be closed. The nominee shall not be allowed to continue with the PPF account. The present rate of Interest is 7.1% per annum which is compounded yearly. 2. Senior Citizen Savings Scheme (SCSS):- POST OFFICE SENIOR CITIZEN SCHEME An individual above 60 years of age can apply for this Post Office (SCSS) scheme. The account can be opened in an individual capacity or jointly with a spouse. The minimum deposit shall be Rs.100 and a multiple of Rs 1000 subject to a maximum limit is Rs 15, 00,000 in all SCSS accounts. Interest will be payable every quarter and applicable from 31st March, 30th June, 30th Sept and 31st December each financial year. TDS will be deducted at the prescribed rate of total Interest paid.No TDS will be deducted if 15G/15H is submitted and accrued interest is not above the above-prescribed limit. Your account can be closed at any time after the date of opening. Accounts may be closed after the completion of 5 years from the date of opening. If the spouse is a joint holder then the sole nominee account can be continued till maturity. The Interest rate is 7.1% from 1-4-2020 and the interest is payable at the end of each quarter. 3. Kishan Vikas Patra (VKP):- KISAN VIKAS PATRA SAVING SCHEME IN THE POST OFFICE Kishan Vikas Patra can be opened by an individual person or jointly with 2-3 people. A minor above 10 years can also open an account. The minimum deposit is Rs1000 and there is no maximum limit on deposits in VKP Scheme. The deposits shall mature after the expiration time as applicable by the Ministry of Finance. KVP may be pledged or transferred as security in the prescribed application form of the post office. It can be pledged to the Schedule bank, co-operative society, corporations Local Authority or Housing Finance Company. KVP can be closed at any time before maturity subject to fulfilling the condition. 1. On the death of a single account holder 2. When ordered by the court 3. 2 years and 6 months from the date of deposit. KVP may be transferred from one person to another person on the death of the account holder, on the order of the court. On the death of the account holder to the nominee or legal heirs. The rate of Interest is 6.9% from 1-4-2020. The Amount Invested is double in 124 months (10 years and 4 months). 4. Sukanya Samrudhi Yojana (SSY):- Sukanya-Samridhi-Yojna in the post office The (SSY) account can be opened in post offices in India by a guardian in the name of a girl’s child below the age of 10 years. Only one account can be opened in India either at the post office or in the bank in the name of the girl’s child. The (SSY) account can be opened with a minimum initial deposit of Rs. 250/-.The maximum deposit is Rs1.50 Lacs per financial year. Deposits can be made for a maximum of 15 years from the date of opening. All deposits are qualified up to Rs 1.50 Lacs rebate under section 80 C of the Income Tax act. Accounts will be operated till the girl child attains the majority of 18 years of age. Withdrawal may be taken from the account after the girl’s child attains the age of 18 or passes the 10th standard. SST account will be 21 years from the date of account opening. After the time of marriage of a girl’s child, attuning the age of 18 years (1 month before or after 3 months). The rate of Interest is 7.6% per Annum from 1-4-2020, which is compounded yearly. 5. Post office Monthly Income Scheme (MIS):- POST OFFICE MONTHLY INCOME SCHEME(MIS) An Individual or adult of 3 people or a minor above 10 years in his own name can open a post office MIS scheme in any part of India. An account can be opened with a minimum of Rs 1000 and the Maximum is Rs 4.50 Lacs can be deposited in a single account and Rs 9 Lacs in a joint account. In a joint account, all joint holders shall have an equal share of Investment. Interest shall be payable on completion of the month from the date of opening and so on till maturity. Under the MIS scheme, interest can be withdrawn through auto credit into a savings account. No deposits shall be withdrawn from the post office before the expiration of the 1 year from the date of deposit. If the account is closed after 1 year and 5 years from the date of account opening, a deduction equal to 1% from the principal will be deducted and the remaining amount will be paid. If the account closes after 3 years and 5 years from the date of opening, a deduction equal to 1% from the principal will be deducted from the balance amount paid to the account holder. The MIS account may be closed on an expiration date of 5 years from the date of opening by submitting prescribed applications from the passbook at the concerned post office. The rate of Interest is 6.6% per annum monthly from 1-4-2020. 6. National Savings Certificate (NSC):- NATIONAL SAVINGS CERTIFICATE ( NSC) SCHEME OF POST OFFICE The (NSC) account can be opened by an individual or a jointly 2 or 3 person. A minor more than the age 10 years can also open this account. The minimum deposit is Rs 1000 and there is no limit. Any number of accounts can be opened by the Individual or jointly. The deposits shall mature after the completion of the five years from the date of opening. NSC can be pledged or transferred as security by submitting prescribed applications form at the concerned post office supported by an acceptance letter from the pledge. NSC can be pledged to any scheduled banks, cooperative societies, private and public limited companies or any housing finance company. NSC may be prematurely closed for 5 years except for the following conditions 1. on the death of a single account or any or all account holders. 2. On forfeiture by a pledge to be a Gazetted officer 3. By the order of the court. The interest rate is 6.8% compounded annually. 7. National Savings recurring Account (RD):- POST OFFICE ACCOUNT ( RD SCHEME) An individual or joint account of up to 3 individuals or a guardian of a minor or a minor age after 10 years can open this RD account in post offices all over India. An individual can open any number of accounts. The account can be opened through cash or cheque, in the case of a cheque the date of the deposit will be the date of clearance of the cheque. The minimum monthly deposit is Rs.100.All deposits should be made before the 15th of next month. If subsequent deposits are not made up to the prescribed day for the month, a default charged for each defaulted month @1 rupee shall be charged for Rs. 100 rupees. In any RD account, there is a monthly default, the depositor first pays the defaulted monthly deposit with default fees and then pays the current month’s deposit. If the RD account is not discounted and can be made in advance deposits up to 5 years are in an account. Rebate on advance deposits of at least 6 installments (inclusive month of deposits). For Rs. 100denominations Rs. 10 is for 6 months Rs. 40 for 12 months to be deposited in the RD account. After 12 installments are deposited and the account is continued for 1 year not discounted the depositor may avail loan facility of up to 50% of the balance credit in the account. The loan can be repaid in one lump sum or in equal monthly installments. Interest on the loan will be applicable as a 2%+RD interest rate applicable to the RD account. The maturity will be 5 years (60 months after completion and from the date of opening. The account can be extended for a further 5 years by giving applications at the concerned post office. RD account can be retained for up to 5 years from the date of maturity without deposit also. Upon the death of the account holder, the nominee/claimant can submit a claim at their post office to get the eligible balance money of the RD account. FAQ:- Question1.Which is the best FD Scheme for the post office? Answer1:-PPF or Public Provident Fund is one of the best Fixed deposit schemes, offer by the post office. Deposits can be made either at once in a lump sum of 12 monthly installments. Question2:-Is post office Investment tax-free? Answer2:-Most of the post office savings schemes provide tax rebate under section 80C of the Income Tax Act. Some schemes such as SCSS, Sukanya Samridhi Yojana, PPF etc provided tax exemption over the interest earned amount. Question3:-Is post office RD Tax-Free? Answer3:-No, the Post office RD account is not Tax-free. The amount Investment in the Post office RDs is not eligible for tax savings under section 80C of the Income Tax Act 1961. Qusestion4:-Which is the best post office scheme? Answer4:- Currently an attractive interest rate is 7.6% per annum compounded annually. The minimum amount of investment is Rs. 1000 and the maximum is Rs. 1,50,000 in a financial year. Question5:-Is post office FD safe in India? Answer5:- Guaranteed returns as a government-backed savings scheme, the post office fixed deposit is one of the safest investment options. Conclusion: – The post office savings account in India is a very safest deposit scheme for investment purposes. All saving scheme provides by the post office all over India. The account provides a fixed rate of Interest on the account balance. It is beneficial for individual investors such as minors, women and senior citizens of India. There are 1,56,434 post offices in India, out of which 1,41,055 post office rural areas and 15379 post offices are at urban areas. 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