The department of post by the government of India offers many interesting saving schemes for people. Despite the competition from private and government financial institutions, Post office has so far remained a trusted place for public savings.
As of today, Indian postal department creates small savings worth millions of rupees in the rural, urban and semi-urban areas. It is now poised to open another full-fledged bank to help people with their savings for the future across the length and breadth of the nation. You can find latest interest rates on FD of PO here in detail.
Let’s see some of the principal savings schemes of Post Office in India for this 2014 year below:
Savings Bank account
Through this savings bank opening schemes, Indian postal department offers to open savings bank account with a balance as low as Rs 20. This can be opened in single name or jointly. This account can fetch 4% interest. This savings bank account is without cheque facility. You can get a cheque book account, if the minimum balance is Rs 500.
Recurring deposit Schemes
This is another type of deposit account for the savings, which has highest subscription throughout India. The scheme continues for five years and the postal department offers 8.3% interest on the money invested in this. You can get Rs 744.33 upon the investment of Rs 10 at the end of five years. The interest along with the principal gets compounded quarterly.
Postal Time Deposit account
You can accept this deposit scheme with a minimum of Rs 200 and the interest rate begins from 8.20% and goes up to 8.40%. Under this, you get tax benefit under the Section 80C of the income tax act and the scheme also offers you nomination facility.
Postal monthly Income account scheme
You can open this account with multiples of Rs 1500. The interest payable in this account is 8.40%. You can keep Rs 4.5 lakhs in a single account and 9 lakhs in a joint account. In this, you can nominate a person as your legal heir.
Senior Citizen savings Schemes
For the aged and old people, the postal department of India offers 9.20% interest per annum. There can be one deposit in the account in the multiple of Rs 1000. The maximum deposit in this can be Rs 15 lakhs. Individuals aged between 55-60, who have got superannuation and retired voluntarily, can invest in this kind of savings scheme.
Public Provident Fund for 15 years
You can invest in this public savings scheme for 15 years. You can invest minimum Rs 500 and maximum Rs 1, 00,000 in a year. This savings scheme gets you 8.70% interest and the amount is compounded yearly. This account can be opened with a fee of Rs 5.
National savings certificate
This is the most favorite saving option for millions of Indian masses, who want to invest in small savings. This savings schemes are available for 5 years and 10 years. You get 8.50%, which is compounded six monthly and this scheme is for five years. You get 8.80% interest, which is compounded six monthly for the savings in national savings certificate for 10 years. This saving option can begin with the minimum denomination from 100 rupees and goes up to Rs 10,000.