Post office saving schemes 2023

Post Office Investment-Savings Schemes 2023 with Plan Comparison, Interest Rate, benefits

The Post Office Saving Schemes offer safe investment returns and a variety of trustworthy products. These programs are run by over 1.54 lakh post offices that are dispersed throughout the nation. For instance, the government uses 8200 public sector banks and post offices in each city to manage the PPF program. These investments have guaranteed returns since they are backed by the government.

Investments in post office plans assist in accumulating funds for emergencies and achieving objectives. Additionally, they provide tax benefits under Section 80C of the Income Tax Act of up to Rs. 1.5 lakh. Below is a discussion of the numerous post office programs.

Interest Rate Comparison of Different Post Office Savings Programs

SchemeInterest Rate (Applicable from 01/04/2023)Minimum InvestmentMaximum InvestmentEligibilityTax Implications
Post Office Savings Account4% per annum (p.a.)Rs. 500No limitResident Indian, minor and majorTax-free interest up to Rs 50,000 
Post Office Time Deposit Account (TD)One-year – 6.9% p.a.  
Two-year – 7.0% p.a.  
Three-year – 7.0% p.a.  
Five-year – 7.5% p.a.
(Compounded Quarterly)
Rs 1,000No limitResident Indian, minor and major
Section 80C offers tax benefits on deposits for up to five years. TDS must be deducted on interest earned for more than Rs 40,000 per year (Rs 50,000 in the case of senior citizens).
Post Office Monthly Income Scheme Account (MIS)7.4% per annum payable monthlyRs 1,000For single account- Rs 9 lakh  
Joint account accounts- Rs 15 lakh
Resident Indian, minor and major
-Interest earned is taxable, and deposits made are not eligible for an 80C deduction. -TDS must be withheld from interest payments of more than Rs 40,000 per year (Rs 50,000 for senior citizens)
Senior Citizen Savings Scheme (SCSS)8.2% p.a. (Compounded Quarterly)Rs 1,000The lifetime maximum deposit allowed is Rs 30 lakh.individuals older than 60 or, in the case of retired civilian or military personnel, between 55 and 60
– Section 80C tax benefits for deposits; TDS to be deducted on interest earned for more than Rs 50,000 per year.
15-year Public Provident Fund Account (PPF)7.1% p.a. (Compounded annually)Rs 500 per financial yearRs 1.5 lakh per financial yearResident Indian, minor and majorInterest on deposits under Section 80C is tax-free up to a maximum of Rs 1.5 lakh per year.
National Savings Certificates (NSC)7.7% p.a. (Compounded annually)Rs 1,000No limitResident Indian, minor and majorTax rebate under section 80C for deposits (maximum Rs 1.5 lakh p.a.)
Kisan Vikas Patra (KVP)7.5% p.a. (Compounded annually)Rs 1,000No limitResident Indian, minor and majorTaxes are paid on interest, but not on the amount received at maturity.
Sukanya Samriddhi Accounts8% p.a. (Compounded annually)Rs 250 per financial yearRs 1.5 lakh per financial yearGirl Child – up to 10 years from birthInvestment, interest, and money received at maturity are all tax-free (up to Rs 1.5 lakh under Section 80C).

Plans for Savings Offered by Post Office Investments

Post Office Savings Account

  • A post office savings account must have a minimum deposit of Rs 500 to be opened.
  • Domestic customers have the option of opening an account under sole or joint ownership.
  • On deposits made to the post office account, there is a 4% annual interest rate that is applicable.
  • On request, you can use the account with a checkbook, an ATM card, e-banking, mobile banking, and other services. After each fiscal year, interest is credited.
  • Under Section 80TTA of the Income Tax Act, individuals are eligible for a deduction of up to Rs 10,000 from their total income.

Recurring Deposit Account (RD) at the Post Office for 5 Years

  • The duration of this RD account is fixed for five years, as the name would imply.
  • With a fixed monthly deposit payment of just Rs 100, you can lock in a 6.5% annual return rate.
  • Quarterly compounding is used for interest.
  • Following the completion of 12 installments without a default, you are eligible for a loan of up to 50% against the deposit that is currently in the account.

Post Office Time Deposit Account (TD)

  • You can choose from four different post office time deposit account tenures: one year, two years, three years, and five years.
  • The account’s minimum deposit requirement is Rs 1,000.
  • Although it is calculated on a quarterly basis, the interest is only due once a year. The following are the interest rates for Q2 of FY 2023–24, or from 1 July to 30 September 2023:
PeriodRate of Interest
1 year account6.9%
2 year account7%
3 year account7%
5 year account7.5%

The investment in the five-year-maturity account will be eligible for a Section 80C deduction.
Additionally, scheduled or cooperative banks may accept a pledge of the Post Office TD account as security. A deposit cannot be withdrawn until six months have passed since the date of the deposit.

Post Office Monthly Income Scheme Account (MIS)

  • A deposit can range from Rs 1,000 up to Rs 9 lakh and from Rs 15 lakh to a joint account.
  • Through this account, you can get a fixed monthly income from the program and earn an interest rate of 7.4% per year during the second quarter of FY 2023–24.
  • The POMIS maturity span is 5 years.
  • You are not permitted to close the account before the year has passed. Over one year early closure may result in fines.
  • For instance, if you deposit up to Rs 9 lakh in a Post Office MIS account for a period of 5 years, you will earn Rs 5,325 in interest each month till the account’s expiration. You’ll receive the deposit.
  • At the end of the term, the interest income from the post office TDRD will be paid monthly, but the interest income from the post office MISRD will be paid monthly during the term of the scheme.

Senior Citizen Savings Scheme (SCSS)

  • This is a government funded retirement system that allows lump sum deposits to be made, i.e. one payment at a time. The deposit can range from Rs 1,000 up to Rs 30 lakh. Only a spouse may open an individual or joint account. The scheme offers an interest rate of 8.2% p.a. for Q2 FY 2023-24. The interest is due every quarter. The opening of this account is open to persons over 60 years of age.
  • The account can also be opened by retired civil servants aged 55 to 60 years and retired defence staff from 50 to 60 years, with a view to investing pension contributions within one month of their receipt. Under Article 80 C of the Income Tax Act, an investment in this scheme is eligible for deduction.

15-Year Public Provident Fund Account (PPF)

  • As the scheme offers tax exemptions of up to a maximum of 1.5 lakh per financial year under Section 80C, many salaried persons are choosing PPF as an investment and retirement tool.
  • The account can only be opened with a minimum of Rs 500 and a maximum of Rs 1.5 lakh.
  • The account is open for 15 years from the opening date. To keep the account active, you only need to pay Rs 500 per fiscal year.
  • The plan offers a yearly interest rate of 7.1%. compounded each year. Likewise, the premium acquired on this record is tax-exempt.
  • Under Section 80C of the Income Tax Act, you can claim a deduction for the PPF investment.
  • The investor can extend the account for an additional block of five years.

National Savings Certificates (NSC)

  • The NSC has a term of five years and requires a minimum deposit of Rs 1,000.
  • There is no greatest store characterized for this record.
  • The annual interest rate of 7.7% is paid out only at maturity and is compounded annually.
  • The plan allows anyone to open as many accounts as they want.
  • The certificate can be pledged or transferred to banks, government agencies, the housing finance company, and others as security.
  • For instance, Rs 1,000 contributed will develop to Rs 1,403 following five years.
  • This account’s deposit is eligible for a Section 80C deduction.
  • With scheduled or cooperative banks, NSC can be pledged as a security.
  • At present Public Investment funds Testament (VIII Issue) is open.

Kisan Vikas Patra (KVP)

  • This scheme is appealing because you can double your investment over the account’s lifetime.
  • This account requires a minimum deposit of Rs 1,000. The applicable interest rate for the second quarter of fiscal year 2023-2024 is 7.5 percent per annum.
  • The term of the account is 10 years and 120 months. During this time, the amount invested is doubled. In 120 months, a Rs 1 lakh investment in KVP will grow to Rs 2 lakh.
  • Please be aware that the interest rate affects how long the account lasts.
  • With scheduled or cooperative banks, KVP can be pledged as security.

Sukanya Samriddhi Accounts (SSA)

  • The purpose of this government program is to ensure the financial security of girls.
  • Only girl children under the age of 10 can apply for SSA.
  • Parents or guardians must open and manage the account until the girl child turns 18 years old.
  • The annual deposit cap is Rs 1.5 lakh, with a minimum deposit of Rs 250.
  • an annual interest rate of 8% is relevant. The interest is computed annually and multiplied annually.
  • There is no tax on the interest that is earned.
  • The account can be used by the guardian until the girl child is 18 years old.
  • From the time the account is opened, you can put money in for up to 15 years.
  • Section 80C of the Income Tax Act allows for a deduction for the SSA account deposits.

Advantages of the Post Office Investment-Saving Schemes in India

Easy to Invest

The reserve funds plans are not difficult to sign up for and the most ideal for country and metropolitan financial backers. Anybody who needs to fence risk in the portfolio for a proper good return can put resources into these plans. The effortlessness and accessibility make these speculations a very much wanted reserve funds cum venture choice.

Documentation and Procedures

Restricted documentation and legitimate methods in the mail center guarantee that these saving plans are easy to choose and protected to be locked onto as the government authority backs them.

Fulfilment of Investments Goals

With a PPF account’s maximum investment period of 15 years, Post Office Scheme investments are long-term in nature. As a result, these investment choices are fantastic for pension and retirement planning.

Tax Exemption

For the deposit amount, the majority of these schemes qualify for tax breaks under Section 80C. A few programs, including the PPF, the Sukanya Samriddhi Yojana, etc., also exempt the amount of interest earned from taxes.

These programs offer risk-free interest rates in the 4% to 9% range. As the Government of India pursues these investment options, there is a negligible risk involved.

How to Open a Post Office Saving Schemes Account?

Post Office Savings Plans are appropriate for people who prefer low levels of risk. These programs are perfect for risk-averse investors who still want to maximize their savings because the returns are not subject to market fluctuations. Through Internet banking, a mobile app, or by downloading the account opening form, you can open a post office savings scheme account online.

Through Internet Banking

Step 1: Go to the Department of Posts (DOP) website to access Internet Banking.

Step 2: Click the ‘New User Activation’ button.

Step 3: Enter the “Customer ID” and “Account ID” information, then press “Continue.” You can also activate Internet banking in person by visiting the branch of your local post office, completing the necessary paperwork, and submitting it.

Step 4: To access your DOP Internet banking after Internet banking has been activated, enter your user ID and password.

Step: On the menu, select the “General Service” tab, then select the “Service Request” tab.

Step 6: Select the “New Requests” tab from the “Service Request” section.

Step 7: From the variety of options, choose the type of account you want to open.

Step 8: Click the “Submit” button after filling out the application form with your information.

Through Mobile App

Step 1: Install the “India Post Mobile Banking” app on your smartphone from the Google Play Store and log in.

Step 2: To open a post office savings account, choose the “Requests” tab on the home screen after successfully logging in.

POFD_Request Tab

Step 3: Enter the information, including the deposit amount, tenure, the account from which you want to make the deposit, the nominee, and other details, and then hit submit.

By downloading the application form

Step 1: The relevant application form is available for download and printing on the post office’s official website.

Step 2: Attach all the necessary documents.

Step 3: Visit the local post office branch and present the necessary paperwork to the staff members there.

Step 4: Pay the bare minimum needed to launch the scheme or account.

Step 5: The employees of the post office will verify your application, open your account, and hand you the passbook for the account.

Documents Required to avail Post Office Savings Scheme

  • Account Opening Form
  • KYC Form
  • PAN Card
  • Aadhaar card, if Aadhaar is not available, submit below mentioned documents.
    • Driving license
    • Passport
    • Voter’s ID card
    • Job card issued by MNREGA signed by the state government officer
    • Letter issued by the National Population Register containing details of name and address.
  • Birth certificate in case of a minor account

You may check your account online using internet banking. You should have KYC documents and a DOP ATM card to check the account balance.

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