VISHAL BANSAL
Post offices are best option for investment of small savings. There are lots of various schemes in which we can invest our savings to earn a beautiful income. We have to invest our savings not in a single plan so always remember that:
“Don’t depend on a single plan for your success”
Different Post office Saving Schemes:
- Post Office Saving Account
- Post Office Time Deposit Account (TD)
- Post Office Monthly Income Scheme Account (MIS)
- 15 Years Public Provident Fund Account (PPF)
- National Saving Certificate (NSC)
- Kisan Vikas Patra (KVP)
- 5 Years Post Office Recurring Deposit Account (RD)
- Senior Citizen Saving Schemes (SCSS)
- Sukanya Samridhi Yojna Account (SSYA)
Detailed chart of Post office saving schemes
| Scheme | Interest Rate per annum | Frequency of Compounding | Minimum or Maximum amount can be Invested | Tenure | Tax Implications |
| Post office Saving Account | 4% | Half Yearly | Minimum- Rs. 50 Maximum-No limit | - | Tax free Interest up to Rs 10,000 under section 80TTA and Rs 50,000 for Senior Citizens under section 80TTB (w.e.f. 01.04.2018) |
| Post Office Time Deposit Account (TD) | 1st year – 6.90% 2nd year -7.00% 3rd year – 7.20% 4th & 5th year – 7.80% | Quarterly | Minimum -Rs. 500 Maximum- No limit | 15 days to 10 years | Deposit amount covered under section 80C up to Rs. 1.50 lakh per annum and interest is taxable. |
| Post Office Monthly Income Scheme Account (MIS) | 7.70 % | Monthly and paid | Minimum- Rs. 1,500 Maximum-Single account Rs 4.5 lakhs and joint account Rs 9 lakhs | 5 years | Deposit amount not covered under section 80C & Interest earned is Taxable |
| 15 Years Public Provident Fund Account (PPF) | 8.00 % | Annually | Minimum- Rs. 500 Maximum-Rs 1.5 lakh per financial year | 15 years | Deposit amount covered under section 80C up to Rs.1.50 lakh per annum, Maturity amount and Interest thereon has also Tax Free |
| National Savings Certificates (NSC) | 8.00 % | Annually | Minimum-Rs. 100 Maximum-No Limit | 5 years | Deposit amount covered under section 80C up to Rs. 1.50 lakh & Interest earned is Taxable |
| Kisan Vikas Patra (KVP) | 7.70 % | Annually | Minimum-Rs. 1000 Maximum-No Limit | 112 months | Deposit amount not covered under section 80C & Interest earned is Taxable |
| 5-Year Post Office Recurring Deposit Account (RD) | 7.30% | Quarterly | Minimum-Rs. 10 per month Maximum-No Limit | 5 years | Deposit amount covered under section 80C up to RS. 1.50 lakh per annum. Interest is taxable |
| Senior Citizen Savings Scheme (SCSS)* | 8.70 % | Annually | Minimum- Rs. 100 Maximum-Up to Rs 15 lakhs | 5 years | Deposit amount covered under section 80C up to Rs.1.50 lakh per annum, Interest is taxable. |
| Sukanya Samridhi Yojna Account (SSYA)** | 8.50 % | Annually | Minimum-Rs. 250 (earlier it was Rs. 1000) Maximum-Rs 1.5 lakh per financial year | 21 years | Deposit amount covered under section 80C up to Rs.1.50 lakh per annum, Maturity amount and Interest thereon has also Tax Free |
The above Interest rates are effective from 01.10.2018
* Senior Citizen Saving Scheme (SCSS)-
- Any person with the age of 60 years
- An Individual who retired under VRS or Superannuation scheme etc.
- Defense personal with the age of 50 years
** Sukanaya Samriddhi Account-
- Girl child below the age of 10 years
Investment in most of schemes are covered under section 80C. Even some of schemes are covered under triple EEE (Exempt, Exempt, Exempt) category, means that the amount which you have deposited is covered under section 80C, the interest earned thereon is tax free and even the maturity amount is also tax free. These are: "Sukanya Samriddhi Account & Public Provident Fund"
Never forget Success Mantra “Don’t’ depend on a single plan for your success”
We can combine various schemes smartly to get more returns from the same amount of money. MIS interest can be further invested in RD to yield more returns. Similarly amount received after maturity of a RD can be further invested in purchase of MIS, FDR, or NSC.
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