POST OFFICE TIME DEPOSIT (T.D.)

Post office Time deposit scheme is a type of fixed deposit account offered by Department of post, Government of India at all post office. This saving plan is best for those investors who want to deposit a lump sum for a fixed period. Investor gets a lump sum (principal + interest) at the maturity of the deposit, where rate of interest on investment depend on the term of deposit.

Who can open :
A single adult or two adults jointly,
A pensioner to receive/credit his monthly pension,
Group Accounts by Provident Fund, Superannuation Fund or Gratuity Fund, Authoritycontrolling funds of the Sanchayika.
Public Account by a local authority/body,
Institutional Accounts by the Treasurer of Charitable Endowments for India, TrustRegimental Fund & Welfare Fund,
A cooperative society / cooperative bank or scheduled bank on behalf of its members,clients or employees
Gazetted Officer in his official capacity.
[ Non Resident Indian / HUF can not open the account. ]

Nomination facility:
Nomination facility is available under Post office Time Deposit scheme.

Investment Limit:
Minimum amount required: Rs.200/-.Maximum Amount : No Limit

Time / term of investment:
Time Deposits can be made for the periods of 1 year, 2 years, 3 years and 5 years.

Interest Rates:
Period of deposit Rate of Interest per cent/ per annum

1 YEAR 6.25 %
2 YEARS 6.50 %
3 YEARS 7.25 %
5 YEARS 7.50 %

PUBLIC PROVIDENT FUND (P.P.F)

Who can open a Public Provident Funds account:

An individual :
in his own name,
on behalf of a minor of whom he is a guardian,
a Hindu Undivided Family.

Where to open a PPF account:
at designated post offices throughout the country and
at designated branches of Public Sector Banks throughout the country.

Maturity period:
The account matures for closure after 15 years.
Account can be continued with or without subscriptions after maturity for block periodsof five years.

Nomination:
Nomination facility is available under Public Provident Funds accounts.

Deposit limits:
Minimum deposit required is Rs. 500 in a financial year.
Maximum deposit limit is Rs. 70,000 in a financial year.
Maximum number of deposits is twelve in a financial year.

Loans against Public Provident Fund Account:

Loans from the amount at credit in PPF account can be taken after completion of oneyear from the end of the financial year of opening of the account and beforecompletion of the 5th year. The amount of withdrawal cannot exceed 40% of theamount that stood to credit at the end of fourth year preceding the year of withdrawalor at the end of preceding year whichever is lower.

Withdrawal:
Premature withdrawal is permissible every year after completion of 5 years from theend of the year of opening the account.

Transferability:
Account can be transferred from one post office to another post office,
from a bank to another bank; and
from a bank to post office and vice-versa.

PPF Pass Book:
Depositor is provided with a pass book with entries of the deposited amounts, interestcredited every year and other particulars duly stamped by the post Office.

Interest:
Interest at the rate, notified by the Central Government from time to time, iscalculated and credited to the accounts at the end of each financial year.· Present rate of interest is 8% / per year since: 1st March, 2003.

Income Tax relief for Public Provident Fund account holders:
Income Tax rebate is available ‘on the deposits made’, under Section 80C of Income tax Act, 1961 as amended from time to time.
Interest credited every year is tax-free.

KISAN VIKAS PATRA (K.V.P.)

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Kisan Vikas Patras (KVPs) are available at all Head Post Offices and authorized post offices throughout India. The KVPs are measured as the most safe investment tool, as it has the backing of the Government of India. The principal is assured (guaranteed) and it is deemed to be a safe avenue for investing your money.

KVP is suitable for an increase in investment as it accumulates money at a fixed rate, and money doubles at the end of the specified period. It is for those looking for guaranteed returns.

Who can purchase :
An adult in his own name or on behalf of a minor,
A minor,
A Trust,
Two adults jointly.

Where available:
Available for purchase/issue at Post Offices.

Maturity amount / period :
With effect from 1st March, 2003, invested amount doubles on maturityafter Eight Years and Seven months.(8yr & 7months)

Nomination :
Nomination facility is available.

Denomination / Deposit limits:
Certificates are available in denominations (face value) of Rs. 100, Rs.500, Rs. 1000, Rs. 5000, Rs. 10,000 & Rs. 50,000.
There is no maximum limit for purchase of the certificates.

Tax Benefits :
No income tax benefit is available under the scheme. However the depositsare exempt from Tax Deduction at Source (TDS) at the time of withdrawal.

Premature encashment :
Premature encashment of the certificate is not permissible except at adiscount in the case of death of the holder(s), forfeiture by a pledgee andwhen ordered by a court of law.

Place of Encashment/discharge on maturity :
Can be encashed/discharged at the post office where it is registered or any other postoffice.

NATIONAL SAVING CERTICATES (N.S.C)

Who can purchase :
An adult in his own name or on behalf of a minor,
A minor,
A trust,
Two adults jointly,
Hindu Undivided Family.

Where available:
Available for purchase/issue at all Post Offices in India.

Minimum Purchase Value:
The minimum amount of investment under NSC is Rs 100/-

Maturity:
Period of maturity of a certificate is six Years.

Nomination / Transferability:
Nomination facility is available
Certificates can be transferred from one post office to any other post office.
Transfer from one person to another person permissible in certainconditions.

Denomination / Deposit limits :

Certificates are available in denominations (face value) of Rs. 100, Rs.500, Rs. 1000, Rs. 5000 & Rs. 10,000.
There is no maximum limit for purchase of the certificates.

Interest/maturity value :
Interest is available on this scheme @ 8%, compounded half-yearly
With effect from 1st March, 2003, Maturity value a certificate of Rs. 100denomination is Rs. 160.10.
Maturity value of a certificate of any other denomination shall be atproportionate rate.
Interest accrued on the certificates every year is liable to income tax but deemed to have been reinvested.

Premature encashment :
Premature encashment of the certificate is not permissible except at adiscount in the case of death of the holder(s), forfeiture by a pledgee andwhen ordered by a court of law.

Place of Encashment/discharge on maturity :
Can be encashed/discharged at the post office where it is registered or any other postoffice.

Income Tax relief :
Income Tax rebate is available on the amount invested and interest accruing everyyear under Section 80C of Income tax Act, as amended from time to time. [under Sec 80C]

Income tax relief is also available on the interest earned as per limits fixed vied section80C of Income Tax, as amended from time to time

POST OFFICE MONTHLY INCOME SCHEME (M.I.S)

Who can open:
 A single adult or 2-3 adults jointly.
More than one account can be opened subject to maximum deposit limits.

Where can be opened :
At any post office.

Maturity:
Period of maturity of an account is six years.

Deposits:
Only one deposit shall be made in an account.

Deposit limits:

  • Minimum: rupees One thousand. 

  • Maximum: rupees Four lacs Fifty Thousand (4.5 Lacs) in case of single and rupees Nine lakhs (9 Lacs) incase of joint account. Deposits in all accounts taken together shall not exceed Rs. 4.5 Lacs in single account and Rs. 9 Lacs in joint account.The depositor’s shares in the balances of joint accounts shall be taken asone half or one third of such balance according as the account is held by 2 or 3 adults.
Interest:

  • Interest @ 8 per cent/ per annum, payable monthly in respect of theaccounts opened on or after the 1st March, 2008.
  • In addition, bonus equal to Five per cent of the deposited amount is payable at the time of repayment on maturity.
Pass Book :
Depositor is provided with a pass book with entries of the deposited amountand other particulars duly stamped by the post Office.

Premature cloasure :
Premature closure facility is available after one year subject to condition.

Closure of account:
Account shall be closed after expiry of 6 years, bonus equal to five per cent ofdeposits shall be paid alongwith principle amount.

Income Tax Matter :
Interest is taxable.

POST OFFICE RECURRING DEPOSIT (R.D.)

Who can open :
A single adult or two adults jointly,
A guardian on behalf of a minor or a person of unsound mind; or A minor who has attained the age of thirteen year, in his own name.
Where can be opened :
At any post office.
Maturity
Period of maturity of an account is five years.
Deposits:
Sixty equal monthly deposits shall be made in an account in multiples of Rs.five subject to a minimum of ten rupees.
Defaults in deposits :
Accounts with not more than four defaults in deposits can be regularizedwithin a period of two months on payment of a default fee.
Account becomes discontinued after more than four defaults.
Interest & Repayment on maturity :
On maturity of the accounts opened on or after 1st March, 2003, an amount(inclusive of interest) of Rs. 728.90 is payable to a subscriber ofRupees: Ten denomination account.
Amount repayable, inclusive of interest, on an account of any otherdenomination shall be proportionate to the amount specified above.
Pass Book :
Depositor is provided with a pass book with entries of the deposited amountand other particulars duly stamped by the post Office.
Premature closure :
Premature closure of accounts is permissible after expiry of threeyears provided that interest at the rate applicable to post office savingsaccount shall be payable on such premature closure of account.
Continuation after maturity :
Permissible for a maximum period of five years.