There are many Post Office Saving Scheme run by the Post Office Department, Post Office runs different schemes for different customers like MIS scheme is run for someone who needs monthly income, and the SCSS scheme is run for senior citizens and daughters.
Similarly, for different purposes, different schemes are run by the Post Office and if any change is made by the Post Office Department within any scheme, then it is done Quarterly, so if anyone wants to do risk-free investment or saving, then Post You can do your savings within the Office Saving Scheme. In this article, you have been told in detail about the Post Office Saving Scheme.
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Details of Post Office Saving Scheme 2023
|what is the article about||post office saving scheme|
|Who launched the scheme||Indian government|
|Beneficiary||citizens of India|
|Objective||To promote the habit of saving among the people by providing higher interest rates and tax exemptions.|
|scheme available or not||Available|
Types of Post Office Saving Schemes
Types of Post Office Saving Scheme: – Different schemes are run by the Post Office Department:-
Post Office Saving Account :
Post Office Savings Account is one of the schemes the post office offers. This Post Office Saving Scheme is available all over India. In addition, the post office savings account offers a fixed rate of interest on deposits. Hence, Post Office Savings Scheme is suitable for individuals who want to earn fixed returns from their investments. A savings account can be opened in the Post Office with as little as Rs 20.
This Post Office Saving Scheme is very popular in rural areas of India. The interest rate for Post Office Savings Accounts is decided by the Central Government. Often, the rates are similar to those of a bank savings account. The interest rate in Post Office Savings Account is around 4%, and the interest is calculated every month. Also, as per the income tax rules, the interest amount below Rs 50,000 per annum is tax-free for the depositor.
Moreover, the depositors can withdraw the deposited amount anytime they want. However, they have to maintain a minimum balance of INR 50 in a standard account and INR 500 in the case of a check facility. Also, Post Office Saving Account can be easily transferred from one post office to another post office.
Post Office Recurring Deposit Account (RD)
Post Office Recurring Deposit Account (RD):- 5 years Post Office RD Account allows investors to save every month. Interest is compounded every quarter. There are a total of 60 monthly installments in this small Post Office Saving Scheme. Post Office RD suits individuals who want to save through regular monthly deposits. The post office savings interest rate for this scheme is 5.8% per annum. Investors can estimate their returns from RD investment using the Post Office RD calculator.
The minimum investment amount is INR 10, with no limit on the maximum amount. All resident Indian citizens above the age of 18 years can open an account with the post office. Also, minors of ten years can open and operate the account jointly with their guardian. In addition, parents or guardians can open the account on behalf of their minor children.
One cannot prematurely withdraw their Post Office RD investment. However, RD can be broken in case of emergency. It also comes with a penalty of INR 1 for every INR 100 invested. RD account has a minimum lock-in period of three months. Also, if premature withdrawal is done before three months, no interest is paid. Depositors will get back only their principal amount.
Post Office Fixed Deposit Account (TD)
Post Office Fixed Deposit Account (TD):- Post Office Time Deposit (POTD) account is one of the most popular Post Office Saving schemes. The interest rates are determined by the Ministry of Finance every quarter. Post Office New Interest Rates 2023 The minimum investment requirement in a post office fixed deposit account is INR 1,000. One can open a TD account for any of the following periods; One year, two years, three years, and five years. Also, depositors can opt for reinvestment of interest. However, this option is not available for one year TD.
Additionally, one can also choose to redirect the interest to a five-year recurring deposit scheme. The interest rate is kept at 5.5% if you make a 1-year deposit, and 5.5% for 2-year deposits. The rate has been kept and the interest rate of 5.5 percent has been kept for 3 years also. But if you deposit for 5 years, then the interest rate has been kept at 6.7%.
Post Office Monthly Income Scheme Account (MIS)
Post Office Monthly Income Scheme Account (MIS):- POMIS is a low-risk investment scheme that provides depositors with regular monthly income in the form of interest payments. The Government of India supports POMIS. Interest rates are announced every quarter. The current rate of interest is 6.70% (Oct-Dec 2022). POMIS has a lock-in period of five years. On maturity, the depositor can choose to withdraw or reinvest the entire amount in the scheme.
The minimum amount for POMIS is INR 1,500, and the maximum limit is INR 4,50,000 per person. However, for joint holding, the maximum limit is INR 9,00,000. Also one can transfer their POMIS account from one post office to another post office. In addition, this Post Office Saving Scheme allows premature withdrawal after one year of account opening. The interest rate under this scheme has been set at 6.6 percent. The maturity period of this scheme has been kept for 5 years.
Senior Citizen Savings Scheme (SCSS)
Senior Citizen Savings Scheme (SCSS):- Senior Citizen Savings Scheme (SCSS) is a Post Office Saving Scheme suitable for Senior Citizens. In this, the interest is calculated every quarter and credited to the investor’s account. The interest rates are revised every quarter. The SCSS interest rate for the current quarter (October – December 2022) is 7.60%.
The minimum investment amount is INR 1,000 and the maximum is INR 30,00,000. , Under this scheme, an interest rate of 7.4 percent has been fixed. This Post Office Saving Scheme has a lock-in period of five years. Additionally, investors have the option to extend the tenure of the scheme for another three years. Investment in SCSS is eligible for tax exemption under section 80C. However, the interest income is taxable. Also, TDS is deducted if the interest exceeds INR 50,000.
Public Provident Fund Scheme (PPF)
Public Provident Fund Account (PPF):- Public Provident Fund (PPF) is a Post Office Saving Scheme launched by the National Savings Institute in 1968. This scheme guarantees returns as it is backed by the Government of India. For the current quarter (Oct 2022 – Dec 2022), the PPF interest rate is 7.1%. The Finance Ministry revises the PPF interest rates every quarter. The scheme pays interest annually on 31st March. However, interest is calculated every month on the minimum balance from the 5th to the 30th of every month.
The tenure of PPF investment is 15 years. Once invested, the investment gets locked in for 15 years. However, investors can make partial withdrawals of their investments. Investors can make withdrawals at the end of 5 years. They can withdraw only 50% of the balance amount at the end of the previous year or 4th year. Investors can opt for premature closure of their PPF account with a penalty of 1%.
National Savings Scheme (NSC)
National Savings Certificate (NSC):- National Savings Certificate (NSC) is a small savings scheme that encourages savings among low-income and middle-income groups. This post office scheme is a Government of India initiative, and hence the returns are guaranteed. The interest for the current quarter (Oct 2022 – Dec 2022) is 6.8%. The tenure of this Fixed Saving Scheme is 5 years.
Hence the lock-in period is also five years. The interest is automatically invested back in the scheme. Investors will receive the investment and interest amount on maturity.
Investors can invest in NSC with an amount as low as INR 100. Only eligible investors can invest in NSC. Resident Indians are the only category eligible to invest in NSC. HUF, NRI, and Trust cannot invest in NSC. One cannot withdraw one’s NSC investment prematurely except in the case of the death of the investor. However, one can avail loan against his NSC investment at any time.
Kisan Vikas Patra (KVP)
Kisan Vikas Patra (KVP):- Kisan Vikas Patra (KVP) is a small savings scheme launched for farmers. However, the scheme is extended to all residents of India. This Post Office Saving Scheme guarantees income in the form of interest. The scheme pays a fixed interest of 7.5% per annum (Oct 2022 – Dec 2022). Interest rates are revised every quarter Investment in this scheme doubles in 123 months (10 years and 3 months).
Investors can invest in this scheme with an amount as low as INR 1,000. And there is no limit to the maximum amount that one can invest. Indian citizens of 18 years and above can invest in the KVP scheme at any local post office. A PAN card is required as proof of investment above INR 50,000. And for investments above INR 10 Lakh, investors need to submit income proof.
Sukanya Samriddhi Account (SSA)
Sukanya Samriddhi Accounts (SSA) :- Sukanya Samriddhi Yojana (SSY) is an initiative of the Government of India to support the ‘Beti Bachao, Beti Padhao’ campaign. Post Office Saving Scheme was launched in 2015 to promote girl child education and marriage. It is a fixed-income scheme that guarantees returns in the form of interest. For the current quarter (Oct 2022 – Dec 2022), the interest rate is 8.0%. The interest is revised every quarter. To estimate the returns they will get from this scheme, they can use the Sukanya Samriddhi Yojana calculator.
The parents or guardians of the girl child can invest in this scheme on behalf of the girl child before the age of 10 years. Only resident Indians can invest in this scheme. The scheme matures when the girl child attains the age of 21 years.
This scheme allows investment till the age of 15 years only. The minimum investment is INR 250, and the maximum investment is INR 1,50,000 per year. The scheme allows only one account per girl child and two accounts per family. In the case of twins, the number of accounts allowed is three.
Post Office Saving Scheme Interest Rate 2023
|scheme||rate of interest||compounding frequency|
|post office savings account||4||Annually|
|1-Year Time Deposit||5.5||Quarterly|
|2-year time deposit||5.5||Quarterly|
|3 years time deposit||5.5||Quarterly|
|5 years time deposit||6.7||Quarterly|
|5 Year Recurring Deposit Scheme||5.8||Quarterly|
|Senior Citizen Saving Scheme||7.4||Quarterly and paid|
|monthly income account||6.6||Monthly and paid|
|National Savings Certificate||6.8||Annually|
|public provident fund||7.1||Annually|
|Kisan Vikas Patra||6.9||Annually|
|Sukanya Samriddhi Account Scheme||7.6||Annually|
Benefits and Features of the Post Office Saving Scheme
If we talk about the benefits of the Post Office Saving Scheme, then there are many benefits, if anyone wants to save risk-free, then he can save under any scheme of the Post Office Department.
- Post Office Saving Scheme is a risk-free savings scheme because it is a government department.
- There is a good tax rebate under the Post Office Saving Scheme.
- Post Office Saving Scheme has interest rates ranging from 4% to 9%.
- You can withdraw your investment under the post office scheme.
- Within the Post Office Saving Scheme, you can take the scheme according to your purpose.
READ MORE: Monthly Pension Scheme In Post Office
Post Office Saving Scheme Minimum and Maximum Limit
There are different limits for investment in all the schemes of the post office, so you can do it differently according to your own.
|name of the scheme||minimum limit||maximum limit|
|Post Office Savings Account||₹500||no upper limit|
|National Savings Recurring Deposit Account||₹100||no upper limit|
|National Savings Time Deposit Account||₹1000||no upper limit|
|National Saving Monthly Income Account||₹1000||₹450000 in single account and ₹900000 in joint account|
|Senior Citizen Savings Scheme account||₹1000||₹ 1500000|
|Public Provident Fund Account||₹500||₹ 150000 in 1 year|
|National Savings Certificate account||₹1000||no upper limit|
|Farmer Vikas Patra||₹1000||no upper limit|
|Sukanya Samriddhi Account||₹ 250||₹ 150000 in 1 year|
Post Office Saving Scheme Maturity
|names of schemes||Maturity|
|post office savings account||–|
|National Savings Recurring Deposit Account||5 years after the account opening|
|National Savings Time Deposit Account||1 Year, 2 Years, 3 Years, 5 Years(Depending on the condition)|
|National Saving Monthly Income Account||5 years after the account opening|
|Senior Citizen Saving Scheme Account||5 years after the account opening|
|Public Provident Fund Account||15 years after the account opening|
|Sukanya Samriddhi Account||After 15 years from the date of investment|
|National Savings Certificate||5 years after the date of investment|
|Kisan Vikas Patra||to be prescribed by the Ministry of Finance from time to time|
READ MORE: Post Office Savings Account Scheme
Post Office Saving Scheme premature closure period
One advantage of the post office scheme is that the scheme can be closed prematurely, but for premature closure of any scheme, some rules have to be followed and some capital is deducted from it, after that the money is given as:
|names of schemes||Duration|
|Post Office Savings Account||–|
|National Savings Recurring Deposit Account||3 years after the account opening|
|National Savings Time Deposit Account||6 months after the account opening|
|National Savings Monthly Income Account||1 year after the account opening|
|Senior Citizen Savings Scheme account||The account can be closed anytime|
|Public Provident Fund Account||5 years after the account opening|
|Sukanya Samriddhi Account||5 years after the account opening|
|National Savings Certificate account||5 years after the account opening|
|Farmer Vikas Patra||2 years 6 months after investment|
Tax Exemption In Post Office Saving Scheme
Post Office Saving Scheme Taxability;- Different tax exemptions are available within all the post office schemes because the interest rate investment limit of all is different, so the tax exemption will also be different like:-
|KVP Scheme||Under the Income Tax Act Section 80C, a maximum investment of up to ₹ 150000 is exempted.|
|Post Office TD Scheme||1,50,000 per year tax deduction will be provided under section 80C of the Income Tax Act.|
|Post Office RD Scheme||The interest received under this scheme is fully taxable.|
|post office savings account||The interest earned and maturity amount are tax-free under Income Tax Act Section 80C. And there is also a tax deduction of Rs 1.5 lakh.|
|Post Office SCSS Scheme||Tax exemption up to ₹ 150000 under section 80A and TDS exemption up to ₹ 50000 on interest|
|Post Office SSY Scheme||Tax exemption on interest up to ₹ 50000.|
|Post Office MIS Scheme||NO|
|Post Office NSC Scheme||Tax exemption of Rs 1,50,000 under section 80C.|
|Post Office PPF Scheme||TDS on interest earned but maturity amount tax-free.|
READ MORE: Recurring Deposit In Post Office
Post Office Saving Scheme Fee
Talking about post office saving scheme fees, different fees have to be paid for different services, and services will have to be charged for it like:-
|Issuance of passbook instead of lost or mutilated certificate||₹10|
|cancellation of enrollment||₹50|
|Transfer of account||₹100|
|Pledge of account||₹100|
|Issuance of the checkbook in a savings bank account||No fee up to 10 cheques, thereafter ₹ 2 per cheque.|
|Dishonor of Check Charges||₹100|
Eligibility and Documents Required for Post Office Saving Scheme
Eligibility and Documents Required for post office saving scheme:-
- To apply for the post office saving scheme, you must be a permanent resident of India.
- Aadhar card
- PAN card
- passport size photograph
- mobile number
- Proof of residence
How to Apply for a Post Office Saving Scheme
If you want to apply for Post Office Saving Scheme 2023, then you cannot apply online for this, you go to any post office near you, and from there, you have to get information about this scheme, then from there you will get the form, fill that form with Put all the documents and then submit them there, in this way, you can apply in the Post Office Saving Scheme. To get more details about the post office saving scheme, visit the official website
Post Office Saving Scheme 2023 FAQ
Q:- Can money be withdrawn from any branch of the post office?
Ans. : Yes, you can withdraw money from any post office branch.
Q:- What is the rate of interest given under the post office scheme?
Ans. In the post office saving scheme, the applicants are provided different interest rates ranging from 4% to 9% depending on the scheme.
Q:- Who can apply for the post office scheme?
Ans. Indian citizens living in any urban or rural area of the country will be able to apply for a post office saving scheme.
Q:- How much money can be withdrawn from the post office scheme?
Ans: You can withdraw a maximum of Rs 10,000 per day from the post office account. However, a daily withdrawal of Rs 25,000 can be made using a post office ATM card.
Q:- How to invest in Post Office Monthly Savings Scheme?
Ans. Post Office Monthly Income Scheme is essentially low-risk with a steady income. An investor can invest up to Rs 9 lakh per month and up to Rs 15 lakh in case of a joint account
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READ MORE: Post Office Kisan Vikas Patra