India Post is India’s heart and has been the most reliant postal system till date. India Post is coming up with several savings schemes which will not only help you to save money but also offers lucrative investment return. There are currently five savings schemes offered by India Post, which are- savings account, fixed deposit account, recurring deposit account, Sukanya samriddhi account, and monthly investment scheme, offering interest rate from 4 % to 8%. Some of these schemes and also help you with tax benefits under the Section 80C of Income Tax Act. So, India post is no longer used by people only to send letters and couriers but to avail benefits as well.
Following are the detailed information about the various accounts offered by India post and their benefits.
Post office savings account
One can open a post office savings account with cash, please note that they accept cash only. Premium earned is tax-exempt for up to Rs. 10,000, yet past that, the intrigue wage is assessable. Investment account gets an interest rate of 4 % for each annum, which implies the yearly come back from the India Post’s bank account will increase by 4 % on a yearly premise. This account offers an ATM card. You can use electronic mode for deposit and withdrawal of cash.
Post office recurring deposit
The tenure for post office recurring deposit is up to 5 years. You will have to make payments in your recurring deposit on a regular basis and at regular interval. You can start your investment by depositing as minimum as Rs. 10 per month or you can deposit any amount which will be in multiple of 5. You can open your recurring deposit by cash or by cheque, whichever way you feel comfortable. You can deposit money up to the fifteenth day of one month from now if you have opened the account on the fifteenth of a month, and up to the last working day of one month from now, in the event that it is opened between sixteenth day and last working day of a timetable month.
You can avail quarterly-compounded interest rate offered by the post office recurring deposit accounts and it will be 6.9% per year. But if you have been depositing a sum of Rs. 10 per month then the total return of your amount after it gets matured will be Rs. 717.43.
You can withdraw up to 50%, this is the maximum amount that is allowed after you complete one year with your post office recurring deposit.
Post office monthly investment scheme
While post office monthly investment scheme requires you to pay your instalments at a consistent interim, the arrival on post office month to month wage plot comes at customary periods, India Post said.
The base sum required for opening this account ought to be in products of Rs. 1,500. You can increase the amount after that though. If you have a single account, then you can invest a maximum of Rs. 4.5 lakhs and if you have a joined account than it will be Rs.9 lakhs.
Here you can avail an interest rate of 7.3 %. It takes 5 years for your post office monthly investment scheme to get mature. You can get the interest rate in your savings account which is opened with India post via auto credit.
Post office fixed deposit
You require a minimum of Rs.200 to open a post office fixed deposit account. Here, the interest is paid annually, however, it is calculated quarterly. You can easily transfer your post office fixed deposit account to another post office. If you have opened a one-year fixed deposit account, then you will receive a 6.6 % interest, for 2 years it will be 6.7 %, for 3 years plan it will be 6.7% as well, and for a 5 years plan, you will get 7.4 %. The 5-year plan comes with another benefit, venture under five years meets all requirements of advantage under Section 80C of the Income Tax Act, 1961.
Sukanya Samriddhi scheme
Sukanya Samriddhi scheme is for the girl child only and is run by the government. Rs.250 per year us the amount that needs to be invested as per the government. However, previously it was Rs.1000 per year. In a financial year a total of Rs. 1,50,000 is the limit for investment. You can deposit the amount in round sum. You can deposit as many times under scheme as you want, there is no restriction. Sukanya Samridhi scheme can be opened from the date the girl child was born until she reaches the age of 10. There has to be a legal guardian to open this account and the account will be in the girl’s name. Please note that the guardian can open one account in the name of a particular girl and a maximum of 2 different girls. The girl child can benefit an interest rate of 8.1 % per year.