Post offices have been an integral part of Indian culture for centuries. Post Offices in India are operated under the Department of Post since 1854 and since then have had a major influence on all Indian citizens. With around 2 lakh post offices all around the country, it is one of the most widely spread post networks all around the globe.Read more
Save upto ₹46,800 in tax under Sec 80C
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Post offices have come up with many schemes and policies for their customers over the years and have generated trust amongst all because it is completely government-backed. One of the most renowned savings accounts in India is believed to be the Post Office Savings account.
From tax-saving benefits to great interest rates, post office savings schemes are highly-beneficial for the scheme-holders.
|Scheme||Interest Rate (Updated)||Minimum Investment||Maximum Investment||Eligibility||Tax Implications|
|Post Office Savings Account||4%||Rs. 20
Rs. 50 (if not by cheque)
|Exempted Interest up to Rs. 50,000|
|Kisan Vikas Patra Account||6.9% per annum (Annually Compounded)||Rs. 1,000||No limit||Individual||Interest is taxed but the maturity amount is tax-free|
|National Savings Certificates (NSC)||6.8% per annum (Annually Compounded) Paid at maturity||Rs. 100||No Limit||Individual||Tax benefit up to Rs. 1,50,000 under Section 80C of the IT Act|
|National Savings Monthly Income Account||6.6% per annum payable monthly||Rs. 1,500||For Individual holder Rs. 4.5 lakhs
For Joint holders Rs. 9 lakhs
|Individual||Interest earned is taxable with no deductions|
|National Savings Recurring Deposit Account||5.80%||Rs. 10||No limit||Individuals including Minors||Exempted Interest up to Rs. 50,000|
|National Savings Time Deposit Account||5.5% – 6.7%||Rs. 200||No limit||Individual||Section 80C deduction on deposits for 5 Years|
|Public Provident Fund Account (PPF)||7.1% per annum (Annually Compounded)||Rs. 500 annually||Rs. 1,50,000 annually||Individual||Tax benefits can be availed under Section 80C of the IT Act|
|Senior Citizen Savings Scheme Account||7.4% per annum (Annually Compounded)||Rs. 1,000||Rs. 15 lakhs||People above 60 and 50 years of age who have taken VRS or superannuation||Tax benefits can be availed under Section 80C of the IT Act
Tax deductions if the interest earned is more than Rs. 50,000
|Sukanya Samriddhi Account||7.6% per annum (Annually Compounded)||Rs. 1,000 annually||Rs. 1,50,000 annually||Girl Child with age up to the age of 10 years||Interest and maturity amount is tax-free under Section 80C of the IT Act|
The account holder is permitted to close the account at any time as per their convenience.
Minors above the age of 10 are allowed to operate post office savings account.
In order to keep your post office savings account active, you are required to transact in the account once in 3 years. You can do so by either depositing or withdrawing the amount.
One is required to open the account only by doing a cash deposit.
Post office savings account provides nomination facility both at the time of opening the account and after opening the account.
Maximum ₹10,000 interest earned within a financial year is tax-free as per the Income Tax act 80TTA.
The account holder is allowed to transfer their savings account from one branch of the post office to another.
As per the convenience of account holders, the joint accounts can be converted into single accounts and vice versa.
Once you open the account, you can make further deposits and withdrawals via electronic modes in CBS post offices.
You can also make the transactions via any ATM machines available near you.
Minors above the age of 10.
A biological or legal guardian on behalf of a minor or unsound kid.
An individual with an unsound mind.
To open a joint account, 2 or 3 adults.
Security Deposit Account, Institutional Accounts, Official Capacity Accounts, Group Accounts, are not sanctioned.
You are required to submit a maximum of 2 passport-size photographs of yourself. Apart from that, you are required to provide identity proof and address proof. You can present the following documents for identity proof and address proof:
Voter ID Card
Photo ID Card from a recognized educational institute
The documents provided for address proof must have the present address mentioned on them.
Bank or Post Office Passbook
3 months old electricity or telephone bills or any utility bill
Salary Slip from a reputed Employer
Certificate from any Public Authority
A cheque facility is available. Also, it can be requested for existing accounts.
If you have maintained the minimum balance in the post office savings account since the beginning of the account till the time of issuance of debit card, you are permitted to request to ATM/debit card from the post office officials.
Children above 10 years of age are allowed to open the post office savings account in their own name. Whereas for minors below the age of 10 years, a parent or legal guardian is required to open and operate the account on their behalf
If you shift your residence or are not satisfied with the services of the post office branch or for any other reason, you can transfer your savings account from the existing post Office Savings Account branch to the branch of your choice. Also, only one account is allowed to open in one post office branch.
You are allowed to nominate someone at the time of opening the account or after the account is opened. You can nominate the person to receive/withdraw the money from this account after your demise.
2 to 3 adults are permitted to open and operate the post office savings account together under the joint account facility. Also, you can convert the joint account into a single account and vice versa.
You can enjoy tax exemption on the interest earned in the savings account for up to ₹10,000 in the first financial year. Exemption of tax is available as per the scheme chosen by the individual for investment.
Customers can do transactions via any electronic mode in Post offices.
In order to keep the account active, you are required to make a transaction in your account only once in 3 years. If you will miss making even a single transaction (deposit or withdraw) the account for 3 years, your account will be deemed inactive.
These simple steps need to be followed to apply for Savings Scheme in Post Office:
Visit the nearest post office branch or head office.
Request for the desired form. An individual willing to buy any post office scheme can also download the necessary forms from the official website of the Indian post office.
Fill the complete form with all the correct information and required documents.
The enrollment process will be completed once the form is approved and the minimum payment is received by the post office officials.
As all the schemes under the post office savings schemes are government-backed, hence:
There is a simple investing process involved
It is easily accessible to all the Indians
It has long-term benefits
There are minimal or no risks involved
Customization is available as per the individuals’ requirement
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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