Post Office Schemes
The telegram has ended
recently and the use of postal stamp has got reduced in recent time in our
country. The use of Indian post has got reduced in urban area. Now, the people
prefer courier to deliver documents. The increasing use of email, scan
documents are also reason behind the shrinking use of Indian Post. However, it
is still significant in rural India and may play important role in future due
ot its wide network.
The Indian Post has also
applied for banking license recently. It has strong and wide bandwidth across
the whole India to serve the people banking service with 1.55 lakh branches. Its
saving schemes are still popular among all type of investors. Today, we will discuss
about all the schemes available in post office. The following schemes available
with post office:
·
Saving Account
·
Recurring Deposit
·
Time Deposit
·
Monthly Income Scheme
·
Public Provident Fund
(PPF)
·
Senior Citizen’s Saving
Scheme
·
National Saving Certificates
(NSC)
·
Other Financial Services
(A) Saving Account: It can be open with minimum balance amount of Rs 50 without cheque
facility. If you avail cheque facility then you have to maintain Rs 500 minimum
balance. You will get 4% interest on the balance amount in your account.
(B) Recurring Deposit:
It offers 8.3% interest rate with tenure 5
year. The tenure may be extended up to 5 year as per investor willingness at
the time of maturity. The interest credit on the 15 days balance. For this
deposit you need not open saving account with post office.
(C) Time Deposit: It is eligible for
section 80(c) benefit. You can choose deposit term between 1 to 5 years and can
foreclosure after one year. It offers interest rate between 8.2% to 8.4%.
Minors above 10 year also operate this type of account.
(D) Monthly Income Scheme:
The minimum requirement for this scheme is Rs
1500 and maximum limit Rs 4.5 lakh. Its tenure is 5 year although foreclosure allowed
with penalty. It offers 8.4% interest on your deposit and interest credited in
your post office saving bank account.
(E) Public Provident Fund (PPF): It is eligible for section 80(C) tax benefit. Its
maturity amount is also tax free. The minimum deposit required is Rs 500 and
its maturity period is 15 year. Withdrawal allowed after 6 year with some term
and condition. The term may be extended at the time of maturity for 5 year in a
year. The interest rate for current year is 8.7% and it will decide by every
year by government.
(F) Senior’s Citizen’s Saving Scheme: The minimum age required to open this account is 60
year if opt VRS then it would be 55 year. It is eligible for Section 80(C) tax
benefit. The maximum amount is allowed for deposit is 15 lakh per person in
this scheme. Its tenure is 5 year. The interest rate offered in this scheme is
9.2% and quarterly credited in your account. Foreclosure is also allowed with
penalty and it can be extended by 3 year at the time of maturity.
(G) National Saving Scheme (NSC): The minimum Rs 100 required for this investment. Its
tenure is between 5 – 10 year. It is eligible for section 80(c) tax benefit and
interest earned every year treated as reinvestment and eligible for section
80(C) also. The interest rate is offered in this scheme 8.5% to 8.8% depend on
the maturity.
(H) Other Financial Services: National Pension Scheme (NPS), money transfer,
life insurance services is also offered by Indian post. Postal life insurance
is only available for employee of central govt, state govt, public sector and
semi govt organisations.
For more detail about any other query related investment,
you can contact me through my email.
Warm regards,
Arvind Trivedi
Certified Financial Planner
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