INSUBCONTINENT EXCLUSIVE:
Post office fixed deposits (FDs) fetch interest rates between 6.60% and 7.40%.
Besides offering usual postal services, the banking arm of India Post offers nine saving schemes, which
help customers earn attractive interest rates, according to indiapost.gov.in
So as with usual banks, customers can invest in savings accounts, fixed deposits (FDs), recurring deposits (RDs), monthly income scheme
account (MIS), senior citizen savings scheme (SCSS), public provident fund account (PPF), national savings certificates (NSC), Kisan Vikas
Patra (KVP) and sukanya samriddhi accounts.Given below is a comparison of post office fixed deposits, monthly income scheme and savings
accounts:Post office fixed deposits (FD)Also known as time deposit, post office fixed deposit accounts can be opened by an individual via
A nomination facility is available at the time of opening and also after opening of the fixed deposit account
The account can be transferred from one post office to another
The investment under five years fixed deposit qualifies for the benefit of Section 80C of the Income Tax Act, 1961.Interest rates on post
(MIS)MIS accounts can be opened by individuals via cheque/ cash
An individual can invest maximum Rs 4.5 lakh in MIS (including his share in joint accounts)
The account can be prematurely en-cashed after one year but before three years at the discount of 2 per cent of the deposit and after three
years at the discount of 1 per cent of the deposit
per cent per annum, which is payable monthly.Post office savings accountsPost office savings account can be opened by cash only
Interest earned is tax-free up to Rs 10,000/- per year from financial year 2012-13
An ATM facility is also offered with this account.Interest rates on post office savings accountsPost office savings accounts held
individually/ jointly fetch 4 per cent interest per annum.
