Friday, August 12, 2011

India Post : Post Office Savings Schemes


Post Office Savings Schemes
SCHEME
Interest Payable, Rates, Periodicity etc.
Investment Limits and Denominations
Salient features including Tax Rebate
3.5% per annum on individual/ joint accounts.
Minimum INR 50/-. Maximum INR 1,00,000/- for an individual account. INR 2,00,000/- for joint account.
Cheque facility available. Interest Tax Free.
On maturity INR 10/- account fetches INR 728.90/-. Can be continued for another 5 years on year to year basis.
Rate of interest 7.5% (quarterly compounded).
Minimum INR 10/- per month or any amount in multiples of INR 5/-. No maximum limit.
One withdrawal upto 50% of the balance allowed after one year. Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebate.
Interest payable annually but calculated quarterly.
Period Rate
1 yr. A/c 6.25%
2 yr. A/c 6.50%
3 yr. A/c 7.25%
5 yr. A/c 7.50%
Minimum INR 200/- and in multiple thereof. No maximum limit.
Account may be opened by individual. 2,3 & 5 year account can be closed after 1 year at discount. Account can also be closed after six months but before one year without interest. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
8% per annum payable i.e. INR 80/- will be paid every month on a deposit of INR 12000/-.
In multiples of INR 1500/- Maximum INR 4.5 lakhs in single account and INR 9 lakhs in joint account.
Maturity period is 6 years. Can be prematurely encashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.) A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07.
8% per annum (compounded yearly).
Minimum INR. 500/- Maximum INR. 70,000/- in a financial year. Deposits can be made in lumpsum or in 12 installments.
Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rd Financial year. No attachment under court decree order.
Money doubles in 8 years & 7 months. Facility for premature encashment.
Rate of interest 8.4% (compounded yearly)
No limit on investment. Available in denominations of INR. 100/-, INR. 500/-, INR. 1000/-, INR. 5000/-, INR. 10,000/-, in all Post Offices and INR. 50,000/- in all Head Post Offices.
A single holder type certificate may be issued to an adult for himself or on behalf of a minor or to a minor, can also be purchased jointly by two adults.
8% Interest compounded six monthly but payable at maturity. INR. 100/- grows to INR 160.10 after 6 years.
Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. Deposits quality for tax rebate under Sec. 80C of IT Act.
The interest accruing annually but deemed to be reinvested will also qualify for deduction under Section 80C of IT Act.
9% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.
There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding rupees fifteen lakh.
Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse. Age should be 60 years or more, and 55 years or more but less than 60 years who has retired on superannuation or otherwise on the date of opening of account subject to the condition that the account is opened within one month of receipt of retirement benefits. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest. TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
Sec 80C benefit: Investments up to INR 1 lakh in specified securities (maximum of INR 70,000 in PPF) qualify for deduction
· Compounded half-yearly
· Compounded yearly
· Compounded quarterly
· Payable quarterly