Post offices play a vital role as trusted banking, insurance, and investment partner, especially in rural areas. Post office saving schemes are trusted by millions of people across the country. In this article, we are discussing various types of Post office savings yojana. Below, we have prepared a chart where we are discussed the Interest rate, Minimum investment requirement, eligibility, and other important factors.
In October 1854, during the British period, the Post Office began distributing mail (post) and eventually expanded into other financial services such as Banking, Insurance, and Investments. The main benefit of these plans is that they are supported by the state. Some post office savings plans provide tax advantages under Section 80C of the IRS Code. Following is a list of similar plans and their interest rates
Post Office Savings Schemes 2022
Here is the complete list where you can see scheme-wise details :
|Scheme||Interest Rate (Updated)||Minimum Investment||Maximum Investment||Eligibility||Tax Implications|
|Post Office Savings Account||4%||₹20 & ₹50 (for non cheque)||No limit||Individuals including Minors||Exempted Interest up to ₹50,000|
|National Savings Recurring Deposit Account||5.8%||₹10||No limit||Individuals including Minors||Exempted Interest up to ₹50,000|
|National Savings Time Deposit Account||5.5% – 6.7%||₹200||No limit||Individual||Section 80C deduction on deposits for 5 Years|
|National Savings Monthly Income Account||6.6% p.a. payable monthly||₹1500||For Individual holder ₹4.5 lacs, joint account holders ₹9 lacs||Individual||According to Section 80 C, interest is taxable and deposits are not deductible.|
|Senior Citizen Savings Scheme Account||7.4% p.a. (Compounded Annually)||₹1000||Maximum deposit – ₹15 lacs||Persons aged 60 or older who have claimed VRS or superannuation.||– Tax breaks on plan deposits under Sec 80 C – Amounts in excess of Rs. 50,000 are subject to TDS.|
|Public Provident Fund Account (PPF)||7.1% p.a. (Compounded Annually)||₹500 per financial year||₹1.5 lacs per financial year||Individual||Tax relief available under section 80C for deposits|
|National Savings Certificates (NSC)||6.8% p.a. (Compounded Annually) but payable at maturity||₹100||No Limit||Individual||Tax relief of max 1.5 Lakhs, P.A as per Sec 80 C|
|Kisan Vikas Patra Account||6.9% p.a. (Compounded Annually)||₹1000||No limit||Individual||The interest is taxable but the maturity payment is not.|
|Sukanya Samriddhi Account||7.6% p.a. (Compounded Annually)||₹1000 per financial year||₹1.5 lacs per financial year||Girl child up to the age of ten. 1 more year of grace||Section 80C investment, tax-free interest and maturity amount|
New Post Office Saving Schemes List 2022
Post Office Savings Account – It works like a regular bank savings account and is transportable across post offices. The current interest rate under this scheme is 4%.
National Savings Recurring Deposit RD Account – The Scheme helps small/poor investors save for future requirements. An adult or two people jointly establish an account. The current interest rate is 5.8%.
National Savings Time Deposit Account – The 5-year post office time deposit has a tax advantage. The investment is deductible under Section 80C of the 1961 Income Tax Act.
National Savings Monthly Income Accounts – A monthly fixed interest rate is paid.
Senior Citizen Savings Scheme Account – This is savings account for Indian citizens over 60. The deposit matures after 5 years, but the investor has the option to extend it by 3 years.
PPF Account – The PPF scheme is a long-term investment plan launched by the Indian Government. It is a secure post office deposit system with tax benefits and competitive interest rates.
The Sukanya Samriddhi Account (SSY) – SSY is a government-sponsored savings program for girls. The program allows parents to save money for their daughter’s future education and marriage expenditures while earning a high rate of return.
National Savings Certificate (NSC) – A fixed income investment program that may be opened at a post office. It is a savings bond issued by the Indian government to encourage small and medium-sized investors to save on income tax.
Kisan Vikas Patra (KVP) – A post office certificate system. It doubles as a one-time investment in around 9 years and 10 months. For example, a 5000 Kisan Vikas Patra will mature with a 10,000 capital.
How to Apply for a Post Office Savings Scheme – Online/Offline Form 2022
Almost all post office schemes require you to open an account in the post office. If you have never availed of any service from the post office, you probably don’t have the account. Here is the process of opening a post office account:
Here is the step by step process to apply for KVP
- Visit your nearest post office
- Get the account opening form from the post office. You may also download the form from the Indian Post Office’s official website.
- Fill in the form properly and submit it with the KYC proof. You will also need to provide additional required documents.
- Complete the enrolling procedure by depositing the scheme’s money.
Required Documents for Post Office Saving Schemes
- Form (Depends on which scheme you are applying for)
- KYC Form
- Driving license
- Voter’s ID card
- Job card
- Proof of date of birth
What are the benefits of investing in Post Office Schemes?
Here are the key reasons/benefits why you should invest in any of the post office schemes:
- Simple processes of Post office saving schemes at post offices guarantee that these saving plans are secure investment instruments and give a predetermined return since they are supported by the government.
- Investing in these projects is suitable for both rural and urban investors. These are easy enough for the uneducated and rural populace, making them a popular savings choice.
- With a PPF account, you may invest for up to 15 years, making Post Office Schemes a better retirement or pension plan. An investor may diversify their portfolio while receiving a guaranteed return.
- Post office savings schemes provide between 4% and 8% interest, which is risk-free and competitive with banks. The government of India regulates this thus there is no danger.
- The Post Office of India offers a variety of products for various investor levels. The products available differ in tax consequences, investment timeframes, and estimated return.
FAQs on Post Office Savings Scheme
No, that’s not the case. However, most post office savings plans qualify for Section 80 C tax deductions of up to Rs 1.5 lakhs. Tax rebates are not available for several programs, such as the Monthly Income Scheme and Post Office Recurring Deposit.
students over 18 may save at the post office. Sukanaya Samriddhi Yojana (SSY) is a post office investment plan for girls aged 10 and under.
India Post has quadrupled the withdrawal limit for post office account users at GDS locations. India Post has upped the withdrawal limit per account user from Rs 5,000 to Rs 20,000.
Absolutely it is. Earlier the process was offline like you had to withdraw the money in cash from the post office and then deposit it to your bank account. But thanks to the online services, now you can do it online