Various types of post office schemes | Fusion - WeRIndia

Post office schemes are more secure investments than those offered by Government of India. Various types of schemes are there to serve the needs of people. Some are intended for tax savers. Most of the post office schemes are transferrable to banks and vice versa.

Post office savings account can be opened by any individual. Interest rate is 4 per cent per annum which is lower than other schemes. The account holders who have the specific minimum balance in their accounts can get debit cards. At least one transaction of deposit or withdrawal should be done in three financial years to maintain the account in the operative live status. Otherwise, the account will be deactivated. Even the minors aged 10 or more can open and operate the account.

Post office time deposits can be opened for at least one year. The interest rate is 7.1 per cent which is compounded quarterly. The interest rate for a 5 year term deposit is 7.9 per cent which has tax saving benefits under section 80C.

Post office monthly scheme helps the investors to get monthly income. The scheme is ideal for senior citizens. Current interest rate for this scheme is 7.8 per cent. The maximum amount invested in this scheme for a single account is Rs.4.5 lakhs which is Rs.9 lakhs for joint accounts. It has an auto credit facility.

National savings certificate is designed for tax assesses. Even though there is no restriction on the maximum investment in this scheme, only Rs.1,50,000/- per annum is eligible for tax exemption under section 80C of the Income Tax Act. Interest rate on NSC is 8.1 per cent which is compounded half-yearly but payable only after maturity.

Public provident account also has similar interest rate to that of NSC. The amount invested in this scheme is exempted under section 80C of the Income Tax Act as well. Premature withdrawal is not allowed and one can withdraw money from the 7th year counting from the year of opening the account.

Senior citizen savings scheme is intended for individuals who attained their retirement. The amount invested in this scheme has tax benefits. The current interest rate is 8.6 per cent. Quarterly interest is payable on the first day of next quarter’s first month. Premature closure is allowed after one year but at a deduction of certain amount.

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