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Financial Services
The Financial service offered by Post office includes Savings and Postal Life
Insurance (PLI) / Rural Postal Life Insurance (RPLI). The Post Office small
savings scheme provides a secure, risk free and attractive investment option for the
small investors and offers the savings products across its 155000 Post offices.
The Post Office savings bank is the oldest and by far the largest banking system in
the country, serving the investment need of both urban and rural clientele. These
services are offered as an agency service for the Ministry of Finance, Government
of India. Several products on offer serve various investment requirements of the
customers.
Savings Bank account (SB): Serves the need of regular deposits and
withdrawals. Cheque facility is also available.
Recurring Deposit account (RD): Offers a monthly investment option with
a handsome return at the end of five years with option to extend the account
period. Insurance cover facility is also available with some conditions.
Monthly Income Scheme (MIS): offers a fixed investment option for five
years with monthly interest payment facility. The facility of automatic credit
of interest to SB account available.
Public Provident Fund (PPF): Offers intermittent deposits subject to
certain limits for a 15 year period coupled with income tax exemptions
subject to certain conditions, on the investment. Loan and withdrawal
facilities also available.
Time Deposit (TD): Fixed deposit option for periods ranging from one, two,
three to five years with facility to draw yearly interest offered at
compounded rates. Automatic credit facility of interest to SB account.
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Senior Citizens Savings Scheme (SCSS): Offers fixed investment option
for senior citizens for a period of five years, which can be extended, at a
higher rate of interest that are paid in quarterly installments.
National savings certificates (NSC) (VIII) issue: with a fixed investment
for 5 years on certificates of varied denominations. Pledging facility
available for availing loan from Banks.
National Savings certificates (IX) issue: Fixed investment tenure of 10
years.
Post Office also offers Insurance product through Postal Life Insurance
(PLI) and Rural Postal Life Insurance (RPLI) schemes with low premium
and high bonus.
Postal Life Insurance (PLI)
Eligibility: All Government servants and employees of Government aided
institutions with certain conditions.
Whole Life Assurance (Suraksha)
Endowment Assurance (Santhosh)
Convertible Whole Life Assurance (Suvidha)
Joint Life Insurance (Yugalasuraksha)
Anticipated Endowment Assurance (Sumangala)
Childrens Policy
Rural Postal Life Insurance (RPLI)
Eligibility: For people residing in rural areas.
Whole Life Insurance (Grama Suraksha)
Endowment Assurance (Grama Santhosh)
Convertible Whole Life (Grama Suvidha)
Anticipated Endowment (Grama Sumangala)
10 year Rural PLI (Grama Priya
Children Policy
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Scheme
Interest payable,
Rates, Periodicity
etc.
Investment limits and
Denominations
Salient features
including Tax
Rebate
Post Office Savings Account
4.0% per annum on
individual/ joint
accounts. Minimum INR 50/-.
Cheque facility
available. Interest
Tax Free.
5-Year Post Office Recurring
Deposit Account
Rate of interest
8.40%. Maturity value
of a 5 Years RD
account opened on or
after 1.4.2012 with
monthly deposit of
INR.10/- shall be
INR.746.51. Can be
continued for another
5 years on year to
year basis.
Minimum INR 10/- per
month or any amount in
multiples of INR 5/-. No
maximum limit.
One withdrawal
upto 50% of the
balance allowed
after one year. Full
maturity value
allowed on R.D.
Accounts
restricted to that of
INR. 50/-
denomination in
case of death of
depositor subject
to fulfillment of
certain conditions.
6 & 12 months
advance deposits
earn rebate.
Post Office Time Deposit Account
Interest payable
annually but
calculated quarterly.
Period Rate
1 yr. A/c 8.20%2 yr. A/c 8.30%
3 yr. A/c 8.40%
5 yr. A/c 8.50%
w.e.f. 01.04.2012
Minimum INR 200/- and in
multiples thereof. No
maximum limit.. Minimum
INR 200/- and in multiples
thereof. No maximum limit.
Account may be
opened by
individual. The
investment in the
case of 5 years
TD qualify for the
benefit of Section
80C of the Income
Tax Act, 1961
from 1.4.2007.
Post Office Monthly Income
Account Scheme
8.50% per
annum w.e.f.
01.04.2012
In multiples of INR 1500/-
Maximum INR 4.5 lakhs in
single account and INR 9
lakhs in joint account.
Maturity period is
5 years. Can be
prematurely
encashed after
one year with
some
conditions. NoBonus is
admissible on
maturity in respect
of MIS accounts
opened on or after
01.12.2011.
http://www.indiapost.gov.in/SavingsAccount.aspxhttp://www.indiapost.gov.in/SavingsAccount.aspxhttp://www.indiapost.gov.in/RecurringDeposit.aspxhttp://www.indiapost.gov.in/RecurringDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/RecurringDeposit.aspxhttp://www.indiapost.gov.in/RecurringDeposit.aspxhttp://www.indiapost.gov.in/SavingsAccount.aspx -
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15 year Public Provident Fund
Account
8.80% per annum
w.e.f. 01.04.2012
Minimum INR. 500/-
Maximum INR. 1,00,000/- in
a financial year. Deposits
can be made in lumpsum or
in 12 installments.
Deposits qualify
for deduction from
income under Sec.
80C of IT Act.
Interest is
completely tax-free. Withdrawal is
permissible every
year from 7th
financial year.
Loan facility
available from 3rd
Financial year. No
attachment under
court decree
order.
National Savings Certificate (VIII
Issue)
Rate of interest
8.60%. Maturity value
of a certificate of
INR.100/- purchased
on or after 1.4.2012
shall be INR. 152.35
after 5 years.
Minimum INR. 100/- No
maximum limit available in
denominations of INR. 100/-,
500/-, 1000/-, 5000/- & INR.
10,000/-.
A single holder
type certificate can
be purchased by
an adult for
himself or on
behalf of a minor
or to a minor.
Deposits qualify
for tax rebate
under Sec. 80C of
IT Act.
The interest
accruing annually
but deemed to be
reinvested will
also qualify for
deduction under
Section 80C of IT
Act.
National Savings Certificate (IX
Issue)
Rate of interest
8.90%. Maturity value
of a certificate of
INR.100/- purchased
on or after 1.4.2012
shall be INR. 238.87
after 10 years.
Minimum INR. 100/- No
maximum limit available in
denominations of INR. 100/-,
500/-, 1000/-, 5000/- & INR.
10,000/-.
A single holder
type certificate can
be purchased by
an adult for
himself or on
behalf of a minor
or to a minor.
Interest on these
certificates shall
be liable to tax
http://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspx -
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under the Income-
Tax Act, 1961 (43
of 1961, on the
basis of annual
accrual specified
in rule15, but no
tax shall be
deducted at the
time of payment of
discharge value.
Senior Citizen Savings Scheme
9.30% per annum,
payable from the date
of deposit of 31st
March/30th Sept/31st
December in the first
instance & thereafter,
interest shall be
payable on 31st
March, 30th June,
30th Sept and 31st
December.
There shall be only onedeposit in the account in
multiple of INR.1000/-
maximum not exceeding
rupees fifteen lakh. account
in multiple of INR.1000/-
maximum not exceeding
rupees fifteen lakh.
Maturity period is
5 years. A
depositor may
operate more than
a account in
individual capacity
or jointly with
spouse. Age
should be 60
years or more,
and 55 years or
more but less than
60 years who has
retired on
superannuation or
otherwise on the
date of opening of
account subject to
the condition that
the account is
opened within one
month of receipt of
retirement
benefits.
Premature closure
is allowed after
one year on
deduction of 1.5%
interest & after 2years 1% interest.
TDS is deducted
at source on
interest if the
interest amount is
more than INR
10,000/- p.a. The
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investment under
this scheme
qualify for the
benefit of Section
80C of the Income
Tax Act, 1961from 1.4.2007.
Savings Account
Any individual can open an account.
Cheque facility available.
Group Account, Institutional Account, other Accounts like Security Deposit
account & Official Capacity account are not permissible
Recurring Deposit Account
Any individual (a single adult or two adults jointly) can open an account.
Advance Deposits earn rebate.
Four defaults are allowed.
Rate of interest 8.40%
Maturity value of a 5 Years RD account opened on or after 1.4.2012 with
monthly deposit of INR.10/- shall be INR.746.51.
Defaults can be paid within two months.
Part withdrawal facility available.
Premature closure allowed after three years.
Pay Roll Savings Scheme is also available for employees of various
Establishments.
Type of Account Minimum Deposit Maximum Deposit
Individual Account
INR. 10/- and in multiples
of INR. 5/- thereafter o limit.
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Monthly Income Scheme (MIS) Account
Safe & sure way to get a regular monthly income.
Specially suited for retired employees/ Senior Citizens or any one with high
sum for investment.
Rate of interest 8.50%.
Maturity Period - Five Years.
No Bonus on Maturity w.e.f. 01.12.2011.
Auto credit facility to SB Account.
Type of Account Minimum limit Maximum limit
Single INR 1500/- INR 4.5 lakhsJoint INR 1500/- INR 9 lakhs
Above scheme operates automatically, if you open a saving bank account
and give a request for automatic transfer of Monthly Income Scheme interest
to Recurring Deposit through Saving Bank account.
Public Provident Fund Account
Ideal investment option for both salaried as well as self employed classes.
Non-Resident Indians (NRIs) are not eligible.
Investment up to INR. 1,00,000 per annum qualifies for IT Rebate under
section 80 C of IT Act.
The rate of interest on the subscriptions made to the fund on or after
01.12.2011 and balances at credit of the subscriber in the existing PPF
account shall bear interest at the rate of eight point eight per cent (8.80%)
per annum.
Loan facility available from 3rd financial year upto 5th financial year. The
rate of interest charged on loan taken by the subscriber of a PPF account on
or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a.
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shall continue to be charged on the loans already taken or taken up to
30.11.2011.
Withdrawal permitted from 6th financial year.
Free from court attachment.
An individual cannot invest on behalf of HUF (Hindu Undivided Family) or
Association of persons.
Type of Account Minimum limit Maximum limit
Public Provident
Fund(Individual account
on his behalf or on behalfof minor of whom he is
the guardian)
INR. 500/- in a financial
ear
INR. 1,00,000/- in a
financial year
National Savings Certificates (NSC)
NSC VIII Issue
Scheme specially designed for Government employees, Businessmen andother salaried classes who are Income Tax assesses.
No maximum limit for investment.
No Tax deduction at source.
Certificates can be kept as collateral security to get loan from banks.
Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under
section 80C of Income Tax Act.
Trust and HUF cannot invest.
Rate of interest 8.60%.
Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012
shall be INR. 152.35 after 5 years.
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NSC IX Issue
No maximum limit for investment.
INR. 100/- grows to INR 234.35 after 10 years.
Minimum INR. 100/- No maximum limit available in denominations of INR.
100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
A single holder type certificate can be purchased by an adult for himself or
on behalf of a minor or to a minor.
Rate of interest 8.90%.
Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012
shall be INR. 238.87 after 10 years.
Buy National Savings Certificates (NSCs) every month for Five yearsRe-
invest on maturity and relax - On retirement it will fetch you monthly
pension as the NSC matures.
Senior Citizen Savings Scheme (SCSS) Account
A new avenue of investment and return for Senior Citizen.
The account may be opened by an individual,
1. Who has attained age of 60 years or above on the date of opening of
the account.
2. Who has attained the age 55 years or more but less than 60 years and
has retired under a Voluntary Retirement Scheme or a Special
Voluntary Retirement Scheme on the date of opening of the account
within three months from the date of retirement.
3.No age limit for the retired personnel of Defence services provided
they fulfill other specified conditions.
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The account may be opened in individual capacity or jointly with spouse.
Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not
eligible to open an account.
The individual may open one or more account in the multiple of INR.1000/-,
subject to a maximum limit of INR.15 lakh.
No withdrawal shall be permitted before the expiry of a period of five years
from the date of opening of the account. The depositor may extend the
account for a further period of 3 years.
Premature closure of account is permitted
1. After one year but before 2 years on deduction of 1 % of the
deposit.
2. After 2 years but before date of maturity on deduction of 1% of the
deposit.
Premature closure allowed after three years.
In case of death of the depositor before maturity, the account shall be closed
and deposit refunded without any deduction along with interest.
Interest @ 9.30% per annum from the date of deposit on quarterly basis.
Interest can be automatically credited to savings account provided both the
accounts stand in the same post office.
Interest rounded off to the nearest multiple of rupee one.
Post Maturity Interest at the rate applicable to the deposits under Post Office
Savings Accounts from time to time is admissible for the period beyond
maturity.
Nomination facility is available in the Scheme.
The investment under this scheme qualifies for the benefit of Section 80C of
the Income Tax Act, 1961 from 1.4.2007.
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Monthly Income Scheme (MIS) and Senior Citizen Saving Scheme (SCSS)
are the best for Senior Citizens who desire monthly/quarterly interest. Invest
in MIS / SCSS and transfer interest into RD account through SB account
through written request and earn a combined interest of 10.5 % (approx.).
This is the safest investment option for the Senior Citizens.