Post Office Saving Certificates ( NSC and KVP) [Full Details]

Post Office Saving Certificates ( NSC and KVP) [Full Details]

Post Office saving certificates are the backbone of our nation's prosperity. It is no exaggeration. Post office saving certificates viz., National Saving Certificate, Indira Vikas Patra (Discontinued Scheme) and Kisan Vikas Patra have been driving people to save their hard earned money since long. Almost every family in India have reaped the fruits of these schemes at least once. Of course there are still crores of people who gain continuously by investing in these schemes.

Post Office Time Deposit - [Complete Information]

Post Office Time Deposit 

Post office time deposit is what we generally call fixed deposit in banks. Post office time deposit is a saving scheme where a customer can deposit a fixed amount of money and will earn interest on this amount for a fixed period. There are 4 fixed periods prevailing at the moment in India post. As such there are 4 types of Post office time deposit accounts. They are

Post Office Monthly Income Scheme [Full Details]

Post Office Monthly Income Scheme

Post office monthly income scheme is probably the most invested scheme in India. A boon for the middle class people. Even banks have copied the concept. Now a days many banks are offering monthly income type of schemes. But whether to invest in the safest place or in a bank will be your choice. 

Without wasting much let us dive into the details of the scheme. I will provide you the details in the form of an FAQ so that you can understand easily and at the same time most of your doubts will be cleared. But before that let us see some important features of the post office monthly income scheme.

Some Salient Features of Post Office Monthly Income Scheme Account

1. A post office monthly income scheme can be opened in any post office across India.
2. The monthly interest on the deposited amount will be paid to you at a fixed rate of interest for a fixed period of time. At present the period of maturity is 5 years.
3. The amount you invest must be a multiple of 1500. 
4. An individual can deposit up to a maximum of Rs.4,50,000/- only. In case of joint accounts the total deposit in the account shall not exceed Rs.900,000/-.
5. The account can also be opened in the name of minor, which is operated by the guardian. 
6. The account can be closed only after a minimum period of 1 year from the date of opening.
7. Premature closure of account attracts penalty equal to 1) 2% of the principle when closed after 1 year from the date of opening but before 3 years from the date of opening, 2) 1% of the principle when closed after 3 years from the date of opening.
8.  Interest earned every month can be credited to your Savings Account in any post office in India. ECS facility can be availed subject to availability at the post office. Not all post offices have ECS facility.

So these are some important features of Post Office Monthly Income Scheme. Now let us see some more details about the scheme.

How to Open A Post Office Monthly Income Scheme Account

• To open a post office Monthly Income Scheme account you have to fill out the prescribed application form and submit it in any post office.
•  Along with the application form you also have to submit a copy of your Identity proof and address proof. 
• Self attestation ( put your signature on the copies) is necessary for all the documents you are producing for opening of savings account.
• The mode of deposit can either be cash or you can give any bank cheque. If  you already have a savings account in any post office you can give a cheque from that account also. 

Who can open Post Office Monthly Income Scheme Account?

• Any Indian citizen can open a post office Monthly Income Scheme account. Provided they are not currently residing in any country other than India. 
• A saving account can be opened all individuals above 18 years which can be operated by themselves.
• For all the individuals who are below 18 years, the account will be managed by guardians( mother /father or legal guardian)

Who can operate Post office Monthly Income Scheme account?

• Post office Monthly Income Scheme account can be operated by 1. Self if the account is a single account, 2. Up to 3 Account holders if the account is either a Joint A or Joint B account.
• Guardian ( Mother/Father or legal guardian) in case of an account opened in the name of a minor.

Whether Nomination Facility is available?

• Yes nomination facility is available. You can give a nomination at the time of opening of account. You can also change nomination at any time. 

Whether the account can be closed prematurely? 

• Yes, but the account can be closed only after a minimum period of 1 year from the date of opening.
• Premature closure of account attracts penalty equal to 1) 2% of the principle when closed after 1 year from the date of opening but before 3 years from the date of opening, 2) 1% of the principle when closed after 3 years from the date of opening.

So, these are some most commonly asked doubts about the post office monthly income scheme. If you still have any queries feel free to comment below and we will be happy to help.

Now let us see with an example how much interest can you get every month by investing in post office monthly income scheme. 

Let us say Mr. Murli Mohan wants to invest Rs.1,50,000/- in the post office monthly income scheme. The present rate of interest is 6.6%. So the monthly a sum of Rs.825/- will be paid to Mr. Murli Mohan every month. Isn't it great.

If you have certain amount with you and you need some extra income for monthly expenses, monthly income scheme is the best option for investment. With the trust of India Post your money is absolutely safe.

Think twice and make the right choice by investing in post office monthly income scheme. 

Cheers.

Post Office Savings Account [Complete Information]

Post Office Savings Account

Post Office Savings Account is similar to savings account offered by any bank. All features remain same. We can deposit, withdraw money at any time in any post office. Since all post offices in India have now become CBS enabled, we can do transactions in any office. Let us see more details about post office savings account in the form an FAQ so that you can easily grasp the points.

How to open Post Office Savings Account?

• To open a post office saving account you have to fill out the prescribed application form and submit it in any post office.
•  Along with the application form you also have to submit a copy of your Identity proof and address proof. 
• Self attestation ( put your signature on the copies) is necessary for all the documents you are producing for opening of savings account. 

Who can open Post Office Savings Account?

• Any Indian citizen can open a post office savings account. Provided they are not currently residing in any country other than India. 
• A saving account can be opened all individuals above 18 years which can be operated by themselves.
• For all the individuals who are below 18 years, the account will be managed by guardians( mother /father or legal guardian)

Who can operate Post office savings account?

• Post office saving account can be operated by 1. Self if the account is a single account, 2. Up to two Account holders if the account is either a Joint A or Joint B account.
• Guardian ( Mother/Father or legal guardian) in case of an account opened in the name of a minor.

What is a Single Account?

• A Single account is one in which there is only one account holder.

What is a Joint 'A' Account?

• A Joint A account is an account in which there are either 2 account holders. But while making a withdrawal, closing of account, to add/remove/change other account holders and change of nomination acquittance of all the account holders is required. 

What is a Joint 'B' Account?

• A Joint B account is an account in which there are either 2 account holders. But while making a withdrawal, closing of account, to add/remove/change other account holders and change of nomination acquittance of any one of the account holders is enough. 

What is a Minor Account?

• A minor account is one in which the account holder is a minor ( below 18 years old). A minor account is managed by guardian of the minor account holder.

What is nomination?

• A person can be nominated to receive the amount in the account in the event of the death of the account holder/holders. This process is called as nomination. 
• Nomination can be given to more than one person per an account.
• Nomination facility is not eligible for minor accounts.

What is the minimum balance to be maintained?

• A post office savings account can be maintained by a minimum balance of only Rs.500/-. If account balance falls short of this amount, a penalty of Rs.100/- will be charged per year.
• For availing cheque facility, the minimum balance to be maintained is Rs.500/-

What is cheque facility?

• Cheque book facility can be availed for post office saving account. A cheque book will be given to the account holder upon request. Cheque book can be availed at the time of opening itself or at a later time by giving an application.
• The cheque book is similar to that of cheque book given in banks. It can be issued to any one and can be paid on clearance.

What other facilities are there?

• All facilities like ATM, Internet Banking, Phone Banking, SMS Alerts etc are available at absolutely free of cost. 
• Minimum balance required to be maintained to avail all these facilities is Rs.500/-

What in the rate of interest?

• At present 4% simple interest is being given on all saving accounts. You can also opt out from getting interest. 
• Interest earned on deposits upto Rs.100,000/- is exempted from income tax.
• Interest earned above this fold is taxable. 
• There is no limit on the amount of deposit. 

Can deposits and withdrawals be made at any Post office?

• Yes, deposits and withdrawals can be made in any post office. 
• At present a limit of Rs.50000/- is there on all withdrawals made in offices other than where the account stands. 
• No such limit exists on deposits.

Can the account be transferred from one office to other?

• Yes the account can be transferred to any office from any office. An application form has to be given to the post master of the office to which you want your account to be transferred. 
• If the office is a head post office, the account will be transferred on the same day. Else it may take 2-3 days for transfer of account.
• You are not restricted to make transactions while your account is getting transferred.

How to make deposits and withdrawals?

• Its very simple to make deposits and withdrawals. All you need to do is to fill up the prescribed form.
• For accounts with cheque facility, withdrawal is made using one of those cheque leaves.

How to convert a single account to joint account and vice versa?

• For converting an account from single account to a joint account and vice versa, the first account holder has to give a letter stating the requirement to the post master. 
• A new application form has to be filled up and to be given to identify the new person, along with identity and address proofs.

How to close a Post Office savings account?

• To close the account just fill up the account closing form along with the passbook. The account will be closed on the spot and the amount will be paid in cash.

So this is all about a post office savings account. If you have any more doubts about the post office savings account, do comment below. We will be happy to help you.

Share the article with your friends if you like it.

Cheers.

Post Office Saving Schemes

Post Office Savings Schemes explained in Detail

Post office savings has been in India since a very long time. India Post savings bank is one of the safest place to invest your hard earned money. Every 4th person in India holds an account in Post office savings.

It will not be an exaggeration if we say many of the financially stable families in India will have reaped high fruits at least once from post office savings. So what makes post office so special? What are the various savings options do post offices have to offer? 

We will see each of them in detail so that you can decide which saving scheme you might want to invest in.

Post Office Savings Account.

Saving account or SB account or POSB account as it is called, is similar to a normal savings account which you may have in any bank. All the facilities you have in a bank account will also be found in a Postal SB account. You can deposit and withdraw money at you wish. 

You will get interest rates around 4% and these interest rates change every quarter. Cheque book facility, ATM card and internet banking facilities are other things which you will also get.  Though the number of Post office ATMs is relatively less at the moment, you can use India post ATM in any bank ATM also.

India post offices have become CBS enabled, so you can make your transactions like deposit, withdrawals, passbook entries and much more at any post office across the country. Unlike banks where they force you to go to the home branches for many transactions.

You can get more in depth details about post office savings account here.

Please have a look at the number accounts in India Post Savings. There are around 35 crore accounts excluding the saving certificate holders. Can you possibly imagine how big India Post savings is? Do you now know, why people trust India Post? The numbers speak for themselves. Just have a look at it. 

A Glance of No Of Accounts In India Post - Source India Post Annual report for 2015-2016

Post Office Savings - Monthly Income Scheme ( MIS )

Post office Monthly Income Scheme is probably the most famous saving scheme post office has ever offered. It is the go to investment plan since a long time. In this scheme you will deposit a fixed amount. For this principle amount you will get interest at fixed rate. This interest amount will be paid to you every month. Isn't it great? It's like you are getting a salary.

That is the reason people have always shown their interest in investing in Post office Monthly income Scheme. No wonder there are more than 2 crore MIS accounts in India Post all over the country. But there are some restrictions for investing in Post office monthly income scheme. Per person a maximum limit of Rs.4.5 lakhs exists at the moment. It means you can only invest 4.5 lakhs.

For more details about Monthly Income scheme please go here.

Post Office Savings - Term Deposit (TD Account)

This account is similar to traditional fixed deposit accounts. You can invest a fixed amount for a fixed period of time. After the expiry of the committed period you will paid interest along with the principle.  Currently post office Term deposit account can be opened and operated for a period of 1 year, 2 years, 3 years and 5 years.

Investment made in 5 year post office term deposit account are exempted from income tax within the prescribed limits of the Income tax department. But the interest earned in this scheme is taxable.

To know more about the post office term deposit you can please visit here.

Post Office Savings - Saving Certificates (NSC/KVP)

No introduction is needed about the national saving certificates. Almost every one who falls under the taxable income category prefer to buy post office national savings certificate. All investment in NSC are not taxable similar to that of 5 year post office term deposit. 

But the interest earned is taxable. Period of investment if fixed for a term of 5 years at present. You cannot withdraw the amount invested in NSC before a period of 5 years. 

For more in depth analysis of Post office National savings certificate please click here.

Kisan Vikas Patra is an another for of saving certificates offered by India post office. It is similar to NSC but the period of deposit is much longer. At the end of the deposit period you will get double the amount of your investment. Currently the period of doubling is 124 months(10 years and 4 months). At one point this period was 5 years. Probably the highest interest ever paid by any financial institution for savings.

Unlike NSC, KVPs can be encashed at any time after a minimum period of 2.5 years. 

For more details about Kisan Vikas Patra scheme please visit here.

Post Office Savings - Senior Citizen Savings Scheme ( SCSS)

Post office senior citizen scheme is a bit similar to the monthly income scheme except that the interest pay out is done once in three months. You invest a fixed amount for a fixed period of 5 years and you will earn simple interest on the principle amount. 

This interest will be paid after every three months or in other words quarterly. Quarters end on the last day of June, September, December and March every financial year. So you can take payment on 1st day of July, October, January and April.

For more details about Post Office Senior citizen savings scheme please follow this link.

Post Office Savings - Recurring Deposit

Recurring deposit is next favourite saving scheme of the common people next only to Monthly Income Scheme. It's actually opposite of MIS. Every month you have to invest a fixed amount and at the end of fixed period you will be paid the principle amount along with the interest.

Small house holds are the most common customers of the scheme. Having said that this scheme is the favourite of the middle class people, this scheme also has some attractive features making even the higher income group to invest in this scheme to reap high benefits.

A post office recurring deposit scheme can be opened for a minimum period of 5 years. It can be later extended for another period of 5 years.

Post office also offers rebate for advance deposits. While there is penal interest for late deposits.

For an in-depth analysis of Post office recurring deposit scheme please click here.

Post Office Savings Scheme - Public Provident Fund

Public Provident Fund is by far the best scheme for all those who are in the tax paying slabs. Because all the investment made in Public provident fund is completely tax free. Even the interest you earn on PPF is also completely non taxable.

You won't believe that many people invest calmly in PPF and after the maturity period, the interest which you earn itself will be enough to run your house. High returns which are completely tax free, amazing isn't it.

Click here to know more about the deposit opportunities in public provident fund.

Post Office Savings - Sukanya Samruddhi Yojana Account

Sukanya Samruddhi yojana scheme is a great way to empower the girl child. It's a great scheme almost on par with the public provident fund. But the scheme is for a long period of 21 years. This scheme also offers complete income tax exemption on both the principle and interest.

From a minimum investment of Rs.1000/- per year to a maximum of Rs.150,000/-, this scheme is for every one. If you can invest a minimum of Rs.1000/- per month for 15 years, after the maturity period of 21 years you can get a lumpsum amount of more than Rs.600,000/- which is a huge amount considering the amount which we are depositing every month.

To know more about Sukanya Samruddhi yojana click here.

So these are the main saving options available from India Post. Do visit each scheme details and take the right decision to secure your future with Post office saving schemes.

If you have anymore doubts post office saving schemes please comment below.

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Cheers.