Postal Small Savings Schemes: U may Invest your valuable money in any Post Office within India for Investment. Near your doorstep is the Best Place to Put the money in Postal Schemes with some Small Saving Agent/ Advisor of  this all things.

  • 5-Year Post Office Recurring Deposit Account (RD) : The post office recurring deposit (PO-RD) account is a systematic way of saving money. The scheme is meant for those investors who want to deposit a fixed amount regularly on a monthly basis and get a tidy sum on maturity after the stipulated 5 years.
  • Post Office Monthly Income Scheme Account (MIS) : Post office monthly income scheme provides a monthly income at 8 per cent per annum. On completion of six years, you get a 5 per cent bonus on the principal. The scheme offers better liquidity you have an exit option after one year from the investment date.
  • 15 year Public Provident Fund Account (PPF )​: If you haven’t already started on a long-term savings strategy, you could begin with a Public Provident Fund (PPF) subscription . A government-guaranteed fixed income security, this is very apt as a long-term savings instrument. Yearly subscriptions can be as low as Rs. 500 to as high as Rs. 70,000.
  • National Savings Certificates (NSC)​: National Savings Certificate is an assured return scheme and provides for tax rebates under section 80C. It pays interest at 8 per cent for a duration of six years, which is relatively lower compared to other small saving schemes. You buy NSC for a specific value and the interest compounded and returned along with the principal amount on maturity. NSCs have low liquidity and premature withdrawals can be done only under specific circumstances, such as the death of the holder(s), forfeiture by the nominee, or under court’s order.
  • Kisan Vikas Patra (KVP ): Kisan Vikas Patra is another fixed income scheme that doubles your money in eight years and seven months. But it offers no benefits under the Income Tax Act. In terms of liquidity, the scheme is better than the PPF and NSC. You can exit the scheme any time after two and a half years from the investment date, though you will forfeit the interest earned for the invested time period.

Sec 80C benefit: Investments up to INR 1.5 lakh in specified securities qualify for deduction

  • Compounded half-yearly
  • Compounded yearly
  • Compounded quarterly
  • Payable quarterly 

Read here some FAQ’s on Small Saving Schemes:

  • Whether Kisan Vikas Patra can be purchased by a Non Resident Indians?  No, The Non Resident Indians are not eligible to purchase Kisan Vikas Patra as there is no such provision in the rules.
  • Whether Kisan Vikas Patra can be purchased by Karta on behalf of Hindu Undivided Family? No, The Kisan Vikas Patra can not be purchased by the Karta on behalf of the Hindu Undivided Family as there is no provision in the rules.
  • Whether, The teacher’s provident fund are eligible to invest in Kisan Vikas Patra? No, The teacher’s provident funds are not eligible to be invested in Kisan Vikas Patra.
  • Whether, a duplicate Kisan Vikas Patra can be issued? Yes, If a certificate is lost, stolen, destroyed, mutilated or defaced, the person entitled thereto may apply for the issue of a duplicate certificate to the post office of issue.
  • Whether, Annual interest of Post Office Time Deposit Account automatically credited in the savings account? Yes, In case of 2/3/5 year Time Deposit Accounts, the depositor on request to the post office can get annual interest due on his time deposit account credited in his Post Office Savings Account in the same post office.
  • Whether, Post maturity interest is payable on Post Office Time Deposit Account?  Yes. where repayment of a deposit has become due but has not been made, interest shall be allowed on the amount due for a maximum period of two years from the date of maturity to the date of repayment of the deposit subject to the following conditions :-
    (i). The interest shall be simple and shall be calculated at the rate applicable from time to time, to savings accounts of the type of single or joint account.
    (ii). For the purpose of payment of interest any part of the period which is less than one month shall be ignored.
    (iii). The interest shall be paid to the depositor in a lump sum at the time of repayment of amount due. 
  • Whether, Monthly Income Scheme (MIS) account can be opened by Non Resident Indians or Karta of the Hindu Undivided Family? The Monthly Income Scheme account can not be opened by the Non Resident Indians and Karta of Hindu Undivided Family as there is no provision for opening of such accounts in M.I.S. Rules.
  • Whether the National Savings Certificates can be purchased by the Karta of the Hindu Undivided Family by adding the words “HUF” after his name?  No, Joint type certificate can be issued only to two adults under the rules. As such the Karta of Hindu Undivided Family can purchase certificates in his own name by adding the name of one of his co-partners without adding “HUF” after his name.
  • Whether, irregular Monthly Income Scheme (MIS) accounts can be converted from single account to joint account or vice versa?  No, MIS accounts opened irregularly by exceeding the prescribed limits from single to joint or vice versa in order to compound the irregularity is not admissible.
  • Whether, Public Provident Fund account can be opened by a Non Resident Indians?  Yes, there is no objection to Non Residents opening PPF account out of moneys held in the applicants non resident account in Indian Banks.
  • Whether a Public Provident Fund account can transferred from Head Post Office to Bank or vice versa?  Yes, A Public Provident Fund account can be transferred from one Head Post Office to another Head Post Office and one Head Post Office to a Bank or vice versa.
  • If a subscriber of a Public Provident Fund account holder dies and there is no nomination who will get the deposited amount?  If it is upto one lakh rupees, the accounts office will pay it to the legal heirs of the deceased on receipt of application in prescribed form, supported with necessary documents without production of succession certificate. If the balance is more than one lakh rupees, the production of succession certificate will be necessary..

Find here the latest rates and scheme details of Postal Small Saving Schemes with various investment options for every age will available from nearest local post office.

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