Postal Saving Scheme

 

 

Scheme	Interest Payable, Rates, Periodicity etc	Investment Limits and Denominations	Salient features including Tax Rebate
PostOffice Savings Account	4% per annum on individual/ joint accounts.	Minimum Rs. 50/- Maximum: No limit	Cheque facility available.  Interest Tax Free.
5-YearPost 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 Rs. 10/- per month or any amount in multiples of Rs.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 Rs. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebate.
PostOffice Time Deposit Account	Interest payable annually but calculated quarterly.  Period          Rate  1 yr. A/c      8.2%  2 yr. A/c      8.3%  3 yr. A/c      8.4%  5 yr. A/c      8.5%	Minimum Rs.200/- and in multiple thereof. No maximum limit.	Account may be opened by individual. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
PostOffice Monthly Income Account	8.5% per annum w.e.f 01.04.2012	In multiples of Rs. 1500/- Maximum Rs. 4.5 lakhs in single account and Rs. 9 lakhs in joint account.	Maturity period is 5 years. Can be prematurely encashed after one year with some conditions.No bonus is admissible on maturity in respect of MIS accounts opened on or after 01.12.2011
15year Public Provident Fund Account	8.8% per annum w.e.f 01.04.2012	Minimum Rs. 500/- Maximum Rs. 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 Rs. 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 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 Citizens 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 one deposit in the account in multiple of Rs.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 2 years 1% interest. TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007

Sec 80C benefit: Investments up to Rs 1 lakh in specified securities (maximum of Rs 70,000 in PPF) qualify for deduction

• Compounded half-yearly
• Compounded yearly
• Compounded quarterly
• Payable quarterly

     PPF – A good way of saving for your old age.

     Buy National Savings Certificates (NSC) every month for six years – Reinvest on maturity and relax -