INSUBCONTINENT EXCLUSIVE:
Post office return: Post offices, a part of India Post, offer nine different kinds of saving schemesDid you know you can open several types
of accounts at post offices today India Post, which has a network of more than 1.55 lakh post offices across the country, offers a variety
of banking and remittance services
Individuals can choose from nine types of savings schemes in post offices today
Of these, post office savings, post office recurring deposit (RD), post office time deposit (TD) and post office monthly income scheme (MIS)
offers an annual return of 4 per cent on deposit in the savings account
A post office savings account, which comes with the ATM facility, can be opened against a cash payment of a minimum Rs 20, according to
India Post's website - indiapost.gov.in
The interest earned through the savings account is tax-free up to Rs 10,000 in a financial year, according to India Post
The savings account comes with optional features such as cheque book and nomination facilities.Post office savings schemeInterest
monthly income scheme offers an annual return of 7.3 per cent
One can enter the post office monthly income scheme with a minimum amount of Rs 1,500
The scheme allows investment in multiples of Rs 1,500 subject to a maximum investment limit of Rs 4.5 lakh in case of single account and Rs
The MIS comes with a maturity period of five years
Among other features, the monthly income scheme offers the option of premature encashment after 1-3 years at a discount of 2 per cent of the
After three years, a discount of 1 per cent is applicable
This means should the investor want to withdraw his or her money from the scheme before the stipulated maturity period of five years, it can
be done with 1-2 per cent deduction from the deposit, depending on the timing of premature withdrawal as stated.Post office recurring
deposit accountThe post office RD account, known as the five-year post office recurring deposit account, offers an annual return of 6.9 per
The recurring deposit can be set up with a minimum amount of Rs 10 per month
In a recurring deposit, the investor deposits a fixed amount of money in regular intervals
Contribution in the multiples of Rs 5 can be chosen to invest in the five-year RD account
The interest rate of 6.9 per cent is compounded on a quarterly basis, which means an RD of Rs 10 - in which the account holder pays Rs 10
every month - provides a return of Rs 717.43 in the maturity period of five years, according to India Post
The account comes with the option of withdrawal of up to 50 per cent of the balance after one year, among other features.Post office time
deposit (TD) accountThe post office time deposit account offers return in the range of 6.6 per cent to 7.4 per cent, depending on the
maturity period of 1-5 years
The interest is calculated on a quarterly basis and paid on an annual basis, according to India Post
The TD account can be opened with a minimum amount of Rs 200
Any amount in the multiple of Rs 200 can be invested in the scheme
The post office TD account has no stipulated maximum investment limit
Out of the four tenures available, the five-year option qualifies for the benefit of Section 80C of the Income Tax Act
Section 80C of the Income Tax Act allows deduction of Rs 1.5 lakh from total income in a financial year
That means one can claim reduction up to Rs 1.5 lakh total taxable income in a year.
