Financial Products Offered by the Post Offices in India

Financial Products Offered by the Post Offices in India

 SAVINGS ACCOUNT

  • Any individual can open an account.
  • Cheque facility available.  
  • Group Account, Institutional Account, other Accounts like Security Deposit account & Official Capacity account are not permissible
  • Rate of interest 4% per annum

RECURRING DEPOSIT

  • Any individual (a single adult or two adults jointly) can open an account.
  • Advance Deposits earn rebate.
  • Rate of interest 8.30% 
  • Maturity value of a 5 Years RD account opened on or after 1.4.2013 with monthly deposit of INR.10/- shall be INR.744.53.
  • Four defaults are allowed.
  • Defaults can be paid within two months.
  • Part withdrawal facility available.
  • Premature closure allowed after three years.
  • Pay Roll Savings Scheme is also available for employees of various Establishments.
  • Investor is given a flexible window of up to 15 days to deposit the sum.
  • It is not necessary to open a savings account as well.
  • The term can be extended by up to five years on maturity.

TIME DEPOSITS

  • Tenure: 1 – 5 years
  • Interest rate: 8.2 – 8.4%
  • The five-year deposits are eligible for tax deduction under Section 80C.
  • Minors above 10 years can open and operate account.
  • Deposits can be foreclosed after one year. The one-year deposit can be foreclosed after six months.

MONTHLY INCOME SCHEME

  • Tenure: 5 years
  • Interest rate: 8.4%
  • Types of Account : Single & Joint
  • Safe & sure way to get a regular monthly income.
  • Specially suited for retired employees/ Senior Citizens or any one with high sum for investment.
  • Rate of interest 8.40%..
  • No Bonus on Maturity w.e.f. 01.12.2011.
  • Minimum deposit Rs 1,500 and maximum of Rs 4.5 lakh for single Account
  • Minimum deposit Rs 1,500 and maximum of Rs 9 lakh for Joint  Account
  • Interest flows into savings account at the same post office.
  • It can be foreclosed after one year with a 2% deduction.
  • After three years, the d eduction is 1%.

NSCs

  • Tenure: 5 – 10 year
  • Interest rate: 8.5% – 8.8%
  • There is a minimum investment of Rs 100.
  •  Investments are eligible for deduction under Section 80C.
  •  Income accrued every year is treated as reinvestment and is eligible for tax benefits under Section 80C.
  • There is no TDS, but income is fully taxable.

PUBLIC PROVIDENT FUND

  • Tenure: 15 years
  • Interest rate: 8.7%
  • There is a minimum deposit of Rs 500 and maximum of Rs 1 lakh in a year.
  • Investments are eligible for deduction under Section 80C.
  • The interest earned is tax-free.
  • Account can be extended by five years on maturity.
  • Withdrawals allowed after 6th financial year.
  • Free from court attachment

SENIOR CITIZENS’ SAVING SCHEME

  • Tenure: 5 years
  • Interest rate: 9.2%
  • It is open to investors above 60 years. The retired or those who have taken VRS can join at 55.
  • There is a maximum limit of Rs 15 lakh per individual.
  • Investments are eligible for deduction under Section 80C.
  • Can be foreclosed after one year with 1.5% deduction. After two years, the deduction is 1%.
  • The interest is paid out quarterly.
  • Can be extended for 3 years on maturity.

Other financial services offered by the post office

 

  • It offers wire transfers and international money orders,
  • It  issues  traveller’s cheques and 22 foreign currencies to foreign travellers.
  • It also offers prepaid forex cards in seven currencies,
  • Demand drafts in 11 currencies and wire transfer in 13.