Post Office Scheme

TYPES OF POST OFFICE SCHEMES

Recurring Deposit Account
(RDA)

Amount of Investments: Minimum – Rs. 10/- per month. Maximum – No limit
Returns: 7.4% per annum (quarterly compounded)
Maturity: Maturity Period is 5 years. On maturity RS 1000/- account fetches Rs 72697.
Tax Considerations: Interest is Taxable.

Post Office Monthly Income Scheme
(MIS)

Amount of Investments: Maximum – 4.5 lakhs in single account and RS 9 lakhs in joint account.
Returns: 7.80% per annum payable monthly.
Maturity: The duration of MIS is 5 years
Tax Considerations: Interest is Taxable

Kisan Vikas Patra
(KVP)

Amount of Investments: Maximum – Minimum Rs 1000/-, Maximum – No limit. Available in denominations of Rs 1,000, 5000, 10,000 and Rs 50,000.
Returns: Amount Invested doubles in 110 months (9 years & 2 months)
Maturity: Maturity period of the deposit will be 110 months.
Tax Considerations: Interest is Taxable

5 Years National Savings Certificate (VIII Issue) (NSC):

Amount of Investments: Minimum Rs 100/-, Maximum – No limit. Available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & 10,000/-.
Returns: 8.1% compounded six monthly. Rs 10000/- grows to Rs 14761/- after 5 years.
Maturity: Maturity period of the deposit will be 5 years.
Tax Considerations: Interest is Taxable. Deposits qualify for tax rebate under Sec. 80C of IT Act.

Senior Citizen Saving
Scheme:

Features: “Senior Citizens Savings Scheme” is launched for Citizens of 60 years of age and above. Citizens who have retired under a voluntary or a special voluntary retirement scheme and have attained the age of 55 years are also eligible, subject to specified conditions
Amount of Investments: Min Rs.1000/-, Maximum – Rs. 15 lakh.
Returns: 8.60% per annum payable on quarterly Basis.
Maturity: Maturity period of the deposit will be 5 years.
Tax Considerations: Interest is Taxable. Deposits qualify for tax rebate under Sec. 80C of IT Act.

Public Provident Fund:

Amount of Investments: Minimum Rs 500/-, Maximum Rs. 1,50,000/- in a financial year. Returns: 8.10% per annum
Maturity: Maturity period is 15 years
Tax Considerations: Deposits qualify for tax rebate under Sec. 80C of IT Act. Interest is completely tax-free.

Sukanya Samriddhi Accounts – For Girl Child:

Amount of Investments: Minimum Rs. 1000/-, Maximum Rs. 1,50,000/- in a financial year.
Returns: 8.60% per annum.
Maturity: Partial withdrawal – maximum up to 50% the preceding financial year balance after Account holder’s attaining age of 18 years. Account can be closed after completion of 21 years of girl. Normal Premature closer will be allowed after completion of 18 years /provided that girl is married.
Tax Considerations: Interest is Taxable.

Time Deposit:

Amount of Investments: Minimum- Rs 200; Maximum- no limit
Returns: 7.10% compounded quarterly for 1 year, 7.20% compounded quarterly for 2 year & 7.40% compounded quarterly for 3 year deposit. 7.90% compounded quarterly for 5 year deposit.
Maturity: Can be made for the period of 1 year, 2 years, 3 years and 5 years.
Tax Considerations: Interest is Taxable.