Let us start with Post Office Savings, which is the simplest form of savings in India. I Post office Savings Account: - . Minimum Rs 20/- required to deposit, . Interest - 4% per annum, . Single/Joint/Minor with 10 years can operate on own. . Deposit or withdrawal, once in 3yrs is required to keep account active. . Interest upto Rs 3500/- for single and Rs 7000/- for joint is Tax free. II 5-Year Post Office Recurring Deposit Account:- From 1.4.2013, interest rates are as follows:- . 8.3% per annum (quarterly compounded) . On maturity INR 10/- account fetches INR 744.53. 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. · Account can be opened by Single/joint/minor. · After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made. · One withdrawal upto 50% of the balance allowed after one year. III Post Office Time Deposit Account:- Interest payable annually but calculated quarterly. From 1.4.2013, interest rates are as follows:- Period Rate 1yr.A/c 8.20% 2yr.A/c 8.20% 3yr.A/c 8.30% 5yr.A/c 8.40% . Minimum INR 200/- and in multiple thereof. No maximum limit. · Account may be opened by individual/joint/minor. · The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007. IV Post Office Monthly Income Account Scheme:- . From 1.4.2013, interest rates are as follows:- . 8.40% per annum payable monthly. . In multiples of INR 1500/-. . Maximum investment limit is INR 4.5 lakhs in single account and INR 9 lakhs in joint account. · Maturity period is 5 years from 1.12.2011. · Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.) . A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07 and up to 30.11.2011. No bonus is payable on the deposits made on or after 1.12.2011. V Senior Citizen Savings Scheme :- From 1.4.2013, interest rates are as follows:- . 9.20% 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 INR.1000/- maximum not exceeding INR 15 lakh. · An individual of the Age of 60 years or more may open the account. · Maturity period is 5 years. · TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a. . Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007. VI 15 year Public Provident Fund Account:- From 1.4.2013, interest rates are as follows:- . 8.70% per annum (compounded yearly). . Minimum INR. 500/- Maximum INR. 1,00,000/- in a financial year. . Deposits can be made in lump-sum or in 12 installments. · Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on. · Premature closure is not allowed before 15 years. · 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 from the year of opening account.. · Loan facility available from 3rd financial year. VII Kisan Vikas Patra:- Discontinued from 01.12.2011 VIII National Savings Certificates (NSC):- VIIIA 5 Years National Savings Certificate (VIII Issue):- . From 1.4.2013, interest rates are as follows:- . 8.5% compounded six monthly but payable at maturity. . INR. 100/- grows to INR 151.62 after 5 years. VIIIB 10 Years National Savings Certificate (IX Issue):- . 8.80% compounded six monthly but payable at maturity. INR 100/- grows to INR 236.60 after 10 years. . Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-. · Deposits qualify for tax rebate under Sec. 80C of IT Act.
Posted on: Mon, 22 Jul 2013 05:32:58 +0000
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