Post Office Shaving Scheme – Overview Plans & Benefits

Post Office Shaving Scheme - Overview Plans & Benefits
Post Office Shaving Scheme - Overview Plans & Benefits

Each small saving scheme in the post office is very important. There are many small saving schemes available in the post office but people are not aware of the post office saving scheme. India Post is a central government department. Hence, It comes under finance ministry directly, therefore there is no risk of people’s money in the post office. People can invest their money in the post office saving scheme without any fear. Here is introduced about the post office saving scheme (POSB). Post office Saving Account (POSB)Account.

small saving is the best way to get more

Post office Saving Account (POSB)

  • The interest rate is 4.00% per annum.
  • The minimum amount for the opening saving account is Rs.500/-.
  • People can open an account by cash only.
  • Minimum balance is required to maintain Rs.500/-.
  • Cheque facility is available in POSB account.
  • Nomination facility is available in the saving account.
  • The account transfer facility is available from one post office to another post office.
  • A person can open one account in one post office.
  • Minor can open an account.
    • Above 10 years of age minor can open and operate his account.
    • Minor after attaining the majority has to apply for the conversation of the saving account in his name.
  • A joint account facility is available up to three adult holders.
  • At least one transaction is required in three financial years to keep an active POSB account.
  • Conversation facility from single to join & vice versa is available.
  • Electronic Deposit and withdrawal up to Rs.25000/- facility is available in any CBS post office.
  • ATM/ Debit card facility is available for saving account holders.
  • Internet banking and mobile banking services are available in saving account (POSB).
  • Many government welfare schemes come under this saving scheme account. These accounts are i.e. widow, scholarship, etc.

National Saving Certificate (NSC)

  • The interest rate is 7.9%. (compounded annually but payable at maturity) For example, Rs.100/- grows into Rs.146.25/- after 5 years.
  • The minimum amount of opening of this account Rs.1000/- and further in multiples of Rs.100/- .
  • No maximum limit.
  • A person can purchase the certificate
    • A single adult
    • Joint account (Maximum 3 adults)
    • Minor above 10 years of age
    • An adult on behalf of a minor
    • A guardian on behalf of a person of unsound mind
  • It is not issued in the form of a certificate w.e.f 01.07.2016 But in the shape of Passbook.
  • Deposit amount covers for tax rebate under 80C of IT Act.
  • The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.
  • Transfer certificate facility is available in this saving scheme. It can be transferred from one person to another from the date of issue to maturity.
  • Nomination facility is available.

Kisan Vikas Patra (KVP)

  • The interest rate is 7.6% (compounded annually).
  • The invested amount becomes double in 9 years 5 months (113 months).
  • The minimum amount of opening of this account Rs.1000/- and further in multiple of Rs.100/-.
  • No maximum limit.
  • A person can purchase a certificate
    • A single adult
    • Joint account (Maximum 3 adults)
    • Minor above 10 years of age
    • An adult on behalf of a minor
    • A guardian on behalf of a person of unsound mind
  • KVP is issued in the shape of the passbook w.e.f. 01.07.2016. Before it, it is in the form of a certificate.
  • This saving scheme is available in any departmental post office.
  • Nomination facility is available
  • A certificate transfer facility is available from one person to another and one post office to another post office.
  • Encashment facility is available only after 2 and 1/2 years from the date of issue.
  • Nomination facility is available.

Recurring Deposit Scheme (RD account)

  • A single or two joint adults can open an account.
  • Advance-deposit earn rebate:- 6 months advance 1% and 12 months advance 2%.
  • Four defaults are allowed.
  • The rate of interest is 7.20%.
  • The premature closure rate of interest is 4%.
  • After three years, a premature closure facility is available.
  • A person can pay default within two months.
  • The loan facility is available after one year from the date of opening of the account. 50% loan on the principal amount at the interest rate @10.5%.
  • This saving scheme is for five years. If we decide to pay Rs.1000/- per month
    • The five years total deposit amount will be Rs.60000/-.
    • You can get maturity amount Rs.72505/- (as per the interest rate of the year 2019-20).

Time deposit account (TD account)

  • In this saving scheme, four types of accounts are available. They are as under.
    • 1 TD (one-year fix deposit account) – Interest rate – 6.9%
    • 2 TD (Two- ” ) – Interest rate – 6.9%
    • 3 TD (Three- ” ) – Interest rate – 6.9%
    • 5 TD (Five- ” ) – Interest rate – 7.7%
  • A single and two adults can open this account.
  • This is the best time-based fix deposit account.
  • The person can choose any scheme from above and get the benefit of his chosen scheme for the chosen year.
  • In a one-year fix deposit scheme, the person can close an account after completion of six months but the interest gets only 4%.

Monthly income scheme (MIS account)

  • The interest rate of this account is 7.60%.
  • This is a safe and sure way to get regular monthly income.
  • The maturity period is five years.
  • An auto credit facility in a saving account is available.
  • Automatic transfer of monthly income scheme interest in recurring deposit scheme though saving account.
  • Most useful account for retired and senior citizen persons.
  • In Single account
    • Minimum deposit is Rs.1000/-.
    • Maximum deposit is Rs.450000/-.
  • In joint account
    • Minimum deposit Rs.1000/-.
    • Maximum deposit is Rs.900000/-.

Senior Citizen Saving Scheme (SCSS account)

  • This is for only senior citizens person.
  • An individual can open this account. The criteria is as under.
    • The above 60 years age person can open the SCSS account at any time.
    • Age between 55 to 60 years, the person who is retired voluntarily can open the SCSS account but the condition is that he has to open this account within one month of getting retirement benefits.
    • The retired person from defense service – no age limit but other conditions are as usual.
  • An individual or joint (with spouse only) can open this account.
  • Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.
  • The maximum limit of this account is 15 lakhs and the minimum deposit is Rs.1000/-
  • No withdrawal
  • A person cannot Withdraw before completion of five years.
  • He can extend for a further three years.
  • The premature facility is available after one year.
    • After one year but before two years – 1.5% deduction of the deposit amount.
    • After two years but before the date of maturity – 1% deduction of the deposit amount.
  • The Interest rate is 8.6%. per annum.
    • Quarterly interest credited in saving accounts.
    • Saving and SCSS accounts are must in the same post office.
  • Nomination facility is available.

Public Provident Fund Account (PPF Account)

  • The Interest rate is 7.9% per annum (Yearly compounded).
  • The minimum yearly deposit is Rs.500/- and the maximum deposit is Rs.150000/-.
  • The depositor can deposit the amount in lump-sum or 12 installments.
  • The joint account facility is not available.
  • The maturity period of the PPF account is 15 years. A person can extend for a further five years within one year from the date of maturity.
  • Deposit qualify for the deduction from income under section 80C of the IT Act.
  • Interest is completely tax-free.

Sukanya Samriddhi Account (SSY Account)

  • This saving scheme is the best scheme for girl child between 0 to 10 years.
  • The interest rate is 8.4%.
  • The minimum deposit is Rs.1000/-.
  • The maximum deposit is Rs.150000/- per year.
  • The account is open with an initial amount of Rs.250/-.
  • The legal and natural guardian can open SSY account for her girl child.
  • Guardians can open accounts of a maximum of two girl children. (Exemption in the rule of twins).
  • 50% withdrawal facility is available at the age of 18 of the girl child.
  • It is required to deposit the amount up to fifteen years from the date of opening of the account.
  • The maturity of this account is after 21 years from the date of opening.
  • The account closure facility is available before 21 years.
    • when the girl child gets married.
    • She can close the account showing proof of marriage.
  • For more information visit the link Sukanya Samriddhi Account
Various types of small saving

For more information visit the official website of India post .

The revision of interest rate is also available. Please click on interest rate.

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