Risk free Post office savings schemes

There are number of postal saving schemes available for totally risk averse Indian depositors. 100% of your money is protected by Central Government Guarantee. Some of the popular schemes are.

  1. Kisan Vikas Patra

Money doubles in 8 years & 7 months.
Facility for premature encashment  . No limit on investment.
Available in denominations of Rs. 100/-, Rs. 500/-, Rs. 1000/-, Rs. 5000/-, Rs. 10,000/-, in all Post Offices and Rs. 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 and a trust

2. Post Office Monthly Income Account

8% per annum payable i.e. Rs. 80/- will be paid every month on a deposit of Rs 12000/-. In addition 10% bonus is also payable on maturity i.e. Rs. 1200/- will be paid as bonus after 6 years for deposit of Rs. 12000/-. Deposit can be made In multiples of Rs. 1000/- Maximum Rs. 3 lakhs in Single account and Rs. 6 lakhs in joint account.
Maturity period is 6 years. Can be prematurely encashed after one year at 3.5% discount. However, no such deduction shall be made if the account is closed after three years from the date of opening of such account. Interest & bonus deductible under Sec. 80-L of I.T. Act.

3. 15 Years Public Provident Fund Account

8% per annum from 1.3.2003 compounded yearly. Minimum Rs. 500/-. Maximum Rs. 70,000/- in a financial year. Deposits can be made in lumpsum or in 12 installments. Deposits quality for Income Tax Rebate under Sec. 80ccc-of I.T. Act. Interest is completely tax free. Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rdfinancial year. No attachment under court decree order.

4. Post Office Time Deposit Account

Minimum Rs. 200/-, and in multiple thereof. No maximum limit.

Interest payable annually but calculated quarterly.

Period     Rate

1-Year   6.25%

2-Year   6.50%

3-Year   7.25%

4-Year    7.50%

4. 5-Years Post Office Recurring Deposit Account

On maturity Rs. 10/- account fetches Rs. 728.90. Can be continued for another five years on year to year basis. Minimum Rs. 10/- per month or any amount in multiples of Rs. 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 Rs. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebates.

5.Post Office Savings Account

Interest @ 3.5 % per annum on individual /Joint and group accounts. 3% per annum on public accounts.
Minimum Rs. 50/- Maximum Rs. 1,00,000/-for an individual account. Rs. 2,00,000/- for joint account. No limit on group, Institutional or official capacity accounts.
Cheque facility available. Interest is completely tax free.

6.National Savings Certificate(VIII Issue)

Interest compounded six monthly but payable at maturity. Rs. 100/-grows to Rs. 160.10 in 6 years. Annual accrual of interest on investment of Rs. 100/- is as under and in proportion for other denominations.

1st year -Rs. 8.16

2nd year- 8.83

3rd year-Rs. 9.55

4th year-Rs. 10.33

5th year-Rs. 11.17

6th year-Rs. 12.08

can be encashed after 6 years only

Minimum Rs. 100/- No maximum limit. Available in denominations of Rs. 100/-, 500/-, 1000/-, 5000 & Rs. 10,000/-.
A single-holder type certificate can be purchased by

  1. an adult for himself or on behalf of a minor or to a minor

Special deposit schemes for Retiring Employees of Public Sector Companies also available. Visit your nearest post office to know more.


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