<\/span><\/h2>\n\n\n\nThis scheme offers a guaranteed fixed monthly income on a lump sum investment, making it a suitable avenue for risk-averse investors. POMIS can be opened only by a resident individual and they can do so individually or jointly. A minor can also invest in this post office savings avenue and if they are aged over 10 yrs, they can even operate their account. While the minimum investment is Rs 1,500, the maximum is Rs 4.5 lakh for a single account. In case of a joint account, the maximum limit is Rs 9 lakh. As the name suggests, POMIS pays a monthly interest for a maturity period of 5 yrs. On the completion of the tenor, you receive the principal amount.<\/p>\n\n\n\n
While there\u2019s no restriction on the number of POMIS accounts you can have, the combined maximum investment allowed is Rs 4.5 lakh. You can also make a premature withdrawal after the completion of a year, subject to a penalty, which is 2% on deposit if you withdraw between the 1st<\/sup> yr and the 3rd<\/sup> yr and 1% on withdrawals after 3 yrs. You can transfer a POMIS account from one post office to another. While interest received is taxable, it doesn\u2019t attract TDS. Further, deposits are exempt from wealth tax. Although the interest rate is revised quarterly, your account will earn interest at the rate applicable to the quarter of your investment. The current interest rate is 6.6% pa payable monthly.<\/p>\n\n\n\n<\/span>5.<\/strong>\tPost Office Time Deposit (POTD)<\/strong><\/span><\/h2>\n\n\n\nThis post office savings scheme is similar to a fixed deposit offered by a bank. Although the Post Office Term Deposits are available in 4 tenors\u20141 yr, 2 yrs, 3 yrs, and 5 yrs\u2014only the one with 5 yr term offers tax benefits under Section 80C. The interest rate on this FD is revised quarterly but your scheme will earn interest at the rate applicable to the quarter of your investment. Currently, the account earns interest of 5.5% for the 1st<\/sup>, 2nd<\/sup>, and 3rd<\/sup> yrs and 6.7% for the 4th<\/sup> yr.<\/p>\n\n\n\nWhile the minimum investment is Rs 200, there is no maximum limit. You can hold any number of POTD accounts singly, jointly, and in the name of a minor. The FD account can be transferred from one branch of the post office to another. On maturity, your account automatically renews for the same tenor and earns interest at the rate prevailing on the date of maturity. POTD can also be opened by a minor.<\/p>\n\n\n\n
<\/span>6.<\/strong>\tKisan Vikas Patra (KVP)<\/strong><\/span><\/h2>\n\n\n\nThis is a certificate that doubles your investment every 10 yrs and 4 mth. Denominations accepted are Rs 1,000, Rs 5,000, Rs 10,000 and Rs 50,000. While the minimum investment is Rs 1,000, there is no maximum limit. A KVP certificate is transferable and can also be endorsed to a third person. It is relatively liquid as you can encash it after 2.5 yrs of investment. However, KVP is entirely taxable.<\/p>\n\n\n\n
<\/span>7.<\/strong>\tPost Office Recurring Deposits (RD)<\/strong><\/span><\/h2>\n\n\n\nThis post office savings avenue works like a regular recurring deposit offered by a bank. A Post Office RD requires you to invest a fixed monthly amount throughout the tenor of 5 yrs. While there\u2019s no limit on the number of RD accounts you want to open, RD charges a default fee of Rs 0.05 for every Rs 5 of the deposit. The minimum monthly deposit is as low as Rs 10 but it should be in multiples of Rs 5. Also, there is no maximum limit for the investment. In case you fail to make a monthly investment, you attract a default fee of 5 paise for every Rs 5.<\/p>\n\n\n\n
Your account will be discontinued after 4 continuous defaults but can be revived within 2 mth. After the maturity of the RD account, you can extend it for 5 more years. Although the interest rate is revised quarterly, you will earn interest at the rate applicable to the quarter of your investment. RD allows you to make a partial withdrawal of up to 50% of the account balance after a year. The scheme doesn\u2019t attract TDS on interest. However, the interest income is taxable as per the applicable tax slab. The RD account is transferable from one post office branch to another.<\/p>\n\n\n\n
<\/span>8.<\/strong>\tPublic Provident Fund (PPF)<\/strong><\/span><\/h2>\n\n\n\nBacked by the government, a PPF is an excellent avenue that scores high on many fronts. One, it enjoys a EEE tax status. Two, the minimum investment amount required to keep the account active is just Rs 500 per yr (maximum is Rs 1.5 lakh). Three, you can avail a loan against a PPF from the 3rd<\/sup> yr.<\/p>\n\n\n\nLiquidity-wise, PPF has a lock-in period of 15 yrs but partial withdrawal is allowed from the 7th<\/sup> yr onwards. The best thing about a PPF account is that it cannot be attached in lieu of liability and a court order or decree. The interest rate on a PPF account is revised quarterly and is applicable for the relevant 3 three months. Currently, it is 7.1%.<\/p>\n\n\n\n<\/span>9.<\/strong>\t5-year NSC-VIII Issue<\/strong><\/span><\/h2>\n\n\n\nNSC or National Savings Certificates has a lock-in period of 5 yrs. You can invest in NSC jointly, singly, or on behalf of a minor. Unlike most other savings schemes, the interest on NSC is not paid but reinvested. The prevailing interest rate is 6.8% pa. Earnings earned are eligible for a tax deduction under Section 80C (except for the 5th yr).<\/p>\n\n\n\n
Now that you are familiar with the above-mentioned Post Office Savings Schemes, evaluate the best one as per your liking and give your hard-earned money a chance to grow.
<\/p>\n","protected":false},"excerpt":{"rendered":"
Post office savings schemes are investments offered by India Post. These are known for offering attractive interest rates, tax benefits, and sovereign guarantee<\/p>\n","protected":false},"author":27,"featured_media":2287,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[8,1739],"tags":[195,194,198,197,196],"acf":[],"modified_by":"Manonmayi","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/01\/Post-office.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2279"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=2279"}],"version-history":[{"count":3,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2279\/revisions"}],"predecessor-version":[{"id":2283,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2279\/revisions\/2283"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/2287"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=2279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=2279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=2279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}