Postal Schemes

Senior Citizen Saving Scheme

  • The scheme is available for citizens above 60 years of age; however a provision has been put in place for individuals who have crossed 55 years of age. Such individuals may invest subject to the conditions that, The person has retired under a voluntary retirement scheme or a special voluntary retirement scheme on the date of making the investment.
  • The investment is made within three months of the date of retirement and a certificate from the employer, indicating the fact of retirement, retirement benefits, along with period of such employment with the employer, is attached with the application form.
  • Non-Resident Indians and Hindu Undivided Families are not permitted to invest in the scheme.
  • Investments can be made in any post-office by opening an account. Only one deposit can be made in each account; the deposit amount shall be a multiple of Rs 1,000 and should not exceed Rs 1,500,000.
  • A depositor can operate more than one account subject to the condition that all the deposits taken together don't exceed the specified amount i.e. Rs 1,500,000. Also more than one account shall not be opened in the same post-office during a calendar month.
  • The scheme will offer an interest of 9 per cent per annum. The same will be payable on 31st March, 30th June, 30th September and 31st December each year.
  • The scheme has a tenure of 5 years. The account can be extended for a 3 year period by making an application

Time Deposit

  • Post office time deposit account is just like the bank fixed deposit account. These time deposits are meant for those investors who want to deposit a lump sum for a fixed period. Time deposit account can be opened at any post office with a minimum deposit of Rs. 200. There is no maximum limit for the account.
  • The amount can be deposited for 1year, 2years, 3years, and 5years. The deposited amount is repayable after expiry of the period for which it is made. Interest Rate for the period of 1 yr, 2 yrs, 3 yrs & 5 yrs are 6.25%, 6.5%, 7.25% & 7.5% respectively.
  • Interest is calculated on quarterly compounding basis, and is payable annually. Rate of interest varies according to the period of the deposit and is decided by the Central Government from time to time. Income tax relief is available on the amount of interest under the provisions of section 80L of Income Tax Act.
  • Premature withdrawals from all types of post office time deposit accounts are permissible after expiry of 6 months with certain conditions.

Kisan Vikas Patra

  • Kisan Vikas Patra (KVP) is a saving instrument that provides interest income similar to bonds. Amount invested in Kisan Vikas Patra doubles on maturity after 8 years & 7 months.
  • Kisan Vikas Patra can be purchased by the following: An adult in his own name, or on behalf of a minor. A minor. A Trust. Two adults jointly.
  • Kisan Vikas Patra are available in the denominations of Rs 100, Rs 500, Rs 1000, Rs 5000, Rs. 10,000 & Rs. 50,000. There is no maximum limit on purchase of KVPs. Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledge and when ordered by a court of law.
  • No income tax benefit is available under the Kisan Vikas Patra scheme. However, the deposits are exempt from Tax Deduction at Source (TDS) at the time of withdrawal.

National Saving Scheme

  • National Savings Certificate, popularly known as NSC, is a time-tested tax saving instrument that combines adequate returns with high safety. National Savings Certificate can be purchased by the following: An adult in his own name or on behalf of a minor, A minor, A trust Two adults jointly, Hindu Undivided Family
  • National Savings Certificates are available in the denominations of Rs. 100, Rs 500, Rs. 1000, Rs. 5000, & Rs. 10,000. There is no maximum limit on the purchase of the certificates.
  • Period of maturity of a certificate is six years. Presently, maturity value of a certificate of Rs. 100 denomination is Rs. 160.10. Maturity value of a certificate of any other denomination is at proportionate rate. Premature encashment of the certificate is not permissible except at a discount in the case of death of the holder(s), forfeiture by a pledgee and when ordered by a court of law.
  • Interest accrued on the certificates every year is liable to income tax but deemed to have been reinvested. Income Tax rebate is available on the amount invested and interest accruing under Section 80C of Income Tax Act, as amended from time to time. Income tax relief is also available on the interest earned as per limits fixed vide section 80L of Income Tax, as amended from time to time.

Monthly Income Scheme

  • Who can open an account - Any individual can either singly or jointly open this account. It can also be opened by a minor who has attained the age of 13 years.
  • How to make deposit - There shall be only one deposit in the account
  • Limit on Deposit - The minimum deposit required is Rs.1,000
  • Maximum permissible deposit is Rs.3,00,000 for a single account and Rs.6,00,000 for a joint account.
  • Return on investment - 8% p.a. payable monthly.
  • Tenure - The tenure of account is 6 years.
  • Premature Withdrawal - The amount deposited can be withdrawn after 3 years. If the amount is withdrawn before 3 years then 3.5% of the amount deposited shall be deducted.
  • Nominations - Nomination facility is available
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