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Post Office Savings Schemes: deposit schemes, terms, interest rates, tax benefits | Online application forms at indiapost.gov.in

Post Office Savings Schemes

The Indian Post along with Government of India has launched various savings options under Post Office Savings Schemes. The objectives of the various savings schemes is to promote savings. The Indian Post provides good interest rates on the savings, simple, quick and hassle-free process for deposits and withdrawal along with income tax benefits.

Post Office Savings Account:

  • Interest rate: ​​​4.0% per annum on individual / joint accounts
  • Minimum amount: Rs. 20 for account opening
  • Minimum balance: Rs. 50
  • Tax benefits: No tax on interest earned upto Rs. 10,000 per financial year

5-Year Post Office Recurring Deposit Account (RD):

  • Interest rate: ​​​7.3% per annum (10 Rs = Rs. 725 after 5 years)
  • Maturity: 5 years
  • Minimum amount: Rs. 10 or multiples of Rs. 5
  • Tax benefits: Tax benefits under Section 80C of Income Tax Act 1961

Post Office Time Deposit Account (TD):

  • Interest rate: 1st year: 6.9%, 2nd year: 7.0%, 3rd year: 7.2%, 5th year: 7.8% ​​​(Interest payable annually but calculated quarterly)
  • Minimum investment: Rs. 200 and multiples of Rs. 200
  • Tax benefits: Tax benefits under Section 80C of Income Tax Act 1961

Post Office Monthly Income Scheme Account (MIS):

  • Interest rate: 7.3% yearly
  • Minimum amount: Rs. 1500 and multiples of Rs. 1500
  • Maximum investment: 4.5 lakh for an individual and 9 lakh for the joint account
  • Tax benefits: Tax benefits under Section 80C of Income Tax Act 1961

Senior Citizen Savings Scheme (SCSS):

  • Interest rate: 8.7% yearly
  • Minimum amount: Rs. 1000 and multiples of Rs. 1000
  • Maximum investment: 15 lakh
  • Maturity: 5 years
  • Tax benefits: Tax benefits under Section 80C of Income Tax Act 1961
  • Eligibility: Senior citizens with more than 60 years of age

15 year Public Provident Fund Account (PPF​):

  • Interest rate: 8% per anum
  • Minimum amount: Rs. 500
  • Maximum investment: Rs. 1,50,000 per year
  • Maturity: 15 years, withdrawal is permitted after 7 years
  • Tax benefits: Tax benefits under Section 80C of Income Tax Act 1961
  • Loan facility is available after 3 years

National Savings Certificates (NSC) & 5 Years National Savings Certificate (VIII Issue):

  • Interest rate: 8% per anum
  • Minimum amount: Rs. 100 and multiples of 100
  • Maturity: 5 years
  • Tax benefits: Tax benefits under Section 80C of Income Tax Act 1961
  • Investment of Rs. 100 will grow to Rs. 146.93 after 5 years

Kisan Vikas Patra (KVP​):

  • Interest rate: 7.7% per anum
  • Minimum amount: Rs. 1000 and in the multiples of Rs. 1000
  • Maturity: 9 years 4 months (112 months)

Sukanya Samriddhi Accounts:

  • Interest rate: 8.5% per anum
  • Minimum amount: Rs. 1000
  • Maximum amount: Rs. 1,50,000
  • Tax benefits: Tax benefits under Section 80C of Income Tax Act 1961
  • Eligibility: Accounts can be opened for girls with age less than 10 years only
  • Accounts can be closed after completion of 21 years
  • Parents and guardians can open account in the name of the girl child
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