Post office deposits are traditional way to save cash. In India post offices are operate like other commercial bank. It offer savings, deposit and long term investment plans to retail investors. And you can see Post office saving scheme for tax benefit. Also, check Post office interest rates table.
Schemes for accumulate of corpus
Saving is an essential part of everyone life. In simple words, saving is income that you have not spent. Your saving helps you to make corpus, further stress free life regard your financials. Let us look below various saving schemes offer by Post Office as per your need.
Post office savings account offer interest rate per annum. This account can open through cash only with small amount of Rs. 20. For Non -cheque facility account small balance to be kept is Rs. 50. If an account is open with Rs. 500 cheque facility is available.
But small balance to be kept in such account is Rs. 500. It matures after five years. Any individual and joint can open this account. On time deposit accounts interest is pay annual. But, it is calculate quarterly. See what is Financial Freedom?
Monthly Income Scheme (MIS)
Amount is deposit in many of Rs 1,500. Any individual can open account. And 2 or 3 adults can open join account. But all joint account holders have equal share in each of joint account. An individual can invest up to Rs 4.5 lakhs include your share in joint accounts.
You can open any number of accounts in post office. So total balance in all accounts do not exceed savings limit. And interest is pay on monthly basis. You can opt for auto credit facility. Your interest rate will credit into saving account. Thus, Income tax benefit not applicable.
Public Provident fund (PPF) account
On PPF interest pay in yearly. You can open account by Rs 100 deposit. Deposit can be making through onetime payment or in 12 months instalments. Also, you can open through cash or cheque mode. In case of cheque, date of cheque is realise in government account will be account opening date.
Thus joint account cannot open. Income tax benefit is eligible for tax benefits under Section 80C of IT Act. So PPF account get mature in 15 years. And can be extend to further 5 years subject to application given within one year of maturity. No premature closure allowed.
National Savings Certificates (NSC)
Interest rate is compound on half year basis. But is payable at maturity. Certificates are available in denominations of Rs.100, Rs 500 Rs 1,000, Rs 5000 and Rs 10,000. And HUF and Trust cannot invest in NSCs. You can avail loan from banks by using certificates as collateral.
If you buy certificate of Rs. 100 on or after 1st April 2017 will grow to Rs 148.03 after 5 years. Thus certificates can be transfer only once from issue date to maturity date. But Income tax benefit Deposits are eligible under Section 80C of IT Act.
Senior Citizens Savings Scheme (SCSS)
Any individual an age of 60 years or above can open account. Only one deposit in account in many of Rs. 1,000 is permissible. Interest is payable on quarterly basis. And account can also open by an individual. Who is 55 years or above but less than 60 years and has retire on superannuation or under VRS.
Also, account is open within 1 month of receipt of retirement benefits. And deposit amount must not exceed retirement benefit amount. For below Rs. 1 lakh, you can open by cash. And for above 1 lakh account can open by cheque only.
In case of cheque, date of cheque is realise in government account will be opening date. Total balance in all accounts do not exceed investment limit. Accounts are transfer from one post office to another. But, for joint accounts you can be open with spouse only. If account is at same post office available through PDCs or Money Order.
Core Banking System account will be pay interest on quarterly basis. But on 1st working day of April, July, October and January. Also, this quarterly interest can be credit to any saving account at any other CBS Post Offices. Thus premature closure is allow after 1 year.
Kisan Vikas Patra (KVP)
For this scheme interest rate is per annum. And amount invests in this scheme become double in 9 years and 4 months. It is available in Rs. 1,000, Rs. 5,000, Rs. 10,000 and Rs. 50,000. You can buy KVP certificate from any post office department.
And they can transfer from one person to another or from one post office to another. It can be buy by any individual or behalf of any minor or by joint. It provides encash facility after 2 years and 6 months from issue date.
Rate of Interest offer under this scheme is per annum. Small deposit amount is Rs. 1,000. Following deposits can be making in many of Rs. 100. Also deposits can make in lump sum. There is no limit on number of deposits made in month or financial year.
This account can open by guardian in name of girl child. Guardian can open only one account. It can be open for girls age up to 10 years only. If small deposit of Rs. 1,000 is not made in financial year. Then account will be stop. And it can only restore when penalty of Rs.50 is pay along with small amount need to be deposit in that financial year.
Post Office Schemes are good alternative to banks for risk averse. As they offer wide range of products for different classes. In India, interest rates decline. And return on investment from these schemes will beat inflation.
Short or medium term investments in post office savings are accept. As interest receives from these savings instruments can be measure income growth. But, you consider long-term capital growth. Also, to income growth need to look at other forms of investments offer by post offices.
Finally, check best investment after retirement. Also see best monthly income plan for senior citizen. But you can see Post office savings monthly income scheme. Thus for better understand see post office saving plans.