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Post Office Savings Scheme in 2022: All you need to know 

[ecis2016.org] Check out the process of investing in Post Office Savings Scheme in 2022. Read on to know about the types of savings scheme, eligibility criteria, benefits, features and related information. 

Post offices offer many schemes to help the people save money and avail high-interest rates. You also get exempted from paying taxes under section 80C of the Income Tax Act. The post office runs many schemes like the Sukanya scheme, Samriddhi Yojana, etc. There are many Post Office savings schemes available for investments. 

Post Office Savings Scheme: Purpose

The purpose of the Post Office Savings Scheme is to encourage people to save money. The provision of high-interest rates and tax exemption has been given. The scheme will help people become financially stable and sound.

Post Office Savings Scheme 2022: Key highlights

Scheme Post Office Savings Scheme
Launched by Indian Government
Beneficiaries Indian citizens
Objective Promotes the habit of saving amongst the people, making them more stable financially
Year 2022

Post Office Savings Schemes: Types

Post Office Savings Account

It is a savings account with an interest rate of 4%. The mandate is to keep at least 50 INR in the bank account.

National Savings Scheme

The maturity period for this scheme is 5 years. The minimum amount to invest is 100 INR and there is no maximum amount. The interest rate is 6.8%.

Senior Citizen Savings Scheme

The scheme is for citizens aged 60 years and above. The interest rate is 7.4% and the maximum amount to invest is 15,00,000 INR. 

Post Office Time Deposit Scheme

The money deposited under this scheme can be transferred to someone else. The account has 4-time spans, according to which the interest rate varies. One can invest a minimum amount of INR 1,000. There is no maximum limit for investment. 

Public Provident Fund

The scheme is a long term one with a period of maturity of 15 years. The minimum amount to invest is 500 rupees and the maximum amount is 1,50,000 INR. The interest rate is 7.1%.

Sukanya Samriddhi Scheme

This scheme has been started for the girls and offers an interest rate of 7.6%. The minimum amount to invest is 250 INR and the maximum amount is 1,50,000 INR. The money has to be deposited for a period of 15 years.

Kisan Vikas Patra

The interest fixed under the scheme is 6.9%. The scheme is exclusively for the farmers of the country. The duration of the scheme is 10 years and 4 months and the minimum amount for investing is 1,000. There is no maximum amount for the same.

Post Office Recurring Deposit

The investor has to invest every month in this scheme. The scheme has a tenure of 5 years. The minimum deposit is rupees 10 and there is no maximum deposit. The interest rate is 5.8%.

Post Office Monthly Income Scheme

The duration of the scheme is 5 years. A monthly income is provided to the investor based on the monthly investment. The minimum investment is 1,000 INR, the maximum limit is 4,50,000 INR for a single account and 9,00,000 INR for a joint account. The interest rate is fixed at 5.8%.

National Savings Time Deposit Account

The account under this scheme can be opened for four maturity periods. The interest rates depend on the time of maturity. 3 people can operate the account at once. A minor can also open this bank account. 

Post Office Savings Schemes: Eligibility

You will require the following documents to apply for the schemes.

  • Aadhar card
  • PAN card
  • Passport size photo
  • Mobile number 
  • Proof of residence

Post Office Savings Schemes: Benefits and features

Post Office Savings Schemes are aimed to encourage citizens to save money, thus help improve the financial condition of various families and the country. 

Moreover, the schemes are easy to apply for. Only a few documents are needed to apply for this scheme.

There are various kinds of schemes available for various people. A Post office savings scheme is a risk free government scheme. These are long term investment schemes. The interest rates vary from 4% to 9%. Additionally, it helps people get tax exemptions. 

Post Office Savings Schemes: How to apply for the scheme?

Here’s a step by step guide on apply for a Post Office Savings Scheme:

  • Visit the nearest post office.
  • Take the form for the scheme you wish to apply for.
  • Provide the details on the form, including name, address, etc. Check everything once before submission.
  • Attach all necessary documents and submit the form to the office for verification.

Post Office Savings Schemes: Guidelines for applying

  • Choose the correct scheme: Out of the 9 schemes offered, make sure you read and choose the one that is suitable for you. The schemes are different for different kinds of people. 
  • Check the investing conditions: Before investing, check details like age, number of accounts, number of account holders etc. 
  • Know the eligibility: Before you invest in a scheme, make sure you choose the one that you are eligible for. Various schemes have different eligibility clauses.
  • Check the minimum and maximum amount: It is important to find out the minimum and maximum amount that you can invest in a scheme before investing. This helps you get the maximum benefit from the schemes. 
  • Keep all documents ready beforehand: This will help you save time and labour as you won’t have to fetch anything twice or thrice. This saves a huge amount of manpower and will definitely benefit you in the long run. 
  • Avoid default: Avoid being a defaulter. Ensure that the minimum amount required to stay enrolled in the scheme is there in your bank account. 

Post Office Savings Scheme: Online transaction facility

Money can be easily deposited in accounts opened under post office schemes online via the official mobile application. Through the app, you can perform a plethora of transactions, view the amount in your account and check your previous transactions. 

To get more information about the various schemes and their operation, account holders can contact the postal service on their toll-free numbers.

Post Office Savings Scheme: Interest rates

The interest rates have been revised for post office schemes for the quarter – 1st July to 30th September 2020. However, the interest rates have remained unchanged for the current quarter.

Name of the Instrument Interest Rate Compounding Frequency
1 year time deposit 5.5 Quarterly
2 year time deposit 5.5 Quarterly
3 years time deposit 5.5 Quarterly
5 Year Recurring Deposit Scheme 5.8 Quarterly
5 years time deposit 6.7 Quarterly
Kisan Vikas Patra 6.9 Annually
Monthly income Account 6.6 Monthly and paid
National Savings Certificate 6.8 Annually
Post Office Savings Account 4 Annually
Public Provident Fund 7.1 Annually
Senior Citizen Saving Scheme 7.4 Quarterly and paid
Sukanya Samriddhi Account Scheme 7.6 Annually

 

Post Office Savings Scheme: Taxability

Post Office Savings Scheme Type Post Office Savings Scheme Taxability
Kisan Vikas Patra Investment up to Rs 1,50,000 is exempted from tax under section 80C of the Income Tax Act.
National Savings Certificate Tax exemption of Rs 1.5 lakh under section 80C.
Post Office Monthly Income Scheme Fully-taxable interest, no exemption
Post Office Recurring Deposit Account 5 years The interest earned is fully taxable.
Post Office Savings Account The interest earned and maturity amount is not taxed, as per 80C of the Income Tax Act. There is an additional tax deduction of Rs 1.5 lakhs
Post Office Time Deposit A deduction of Rs 1.5 lakh per year is provided, under section 80C of the Income Tax act
Public Provident Fund TDS is deducted on interest earned, but the maturity amount is tax-free.
Senior Citizen Saving Scheme Tax exemption up to Rs 1,50,000 under section 80A and TDS rebate up to Rs 50,000 on interest.
Sukanya Samriddhi Account Tax exemption of up to Rs 50,000 on interest.

Post Office Savings Scheme: Fee breakdown

Criteria Amount (in Rs)
Account transfer 100
Dishonour of a Cheque 100
Duplicate passbook issuance 50
Enrollment cancellation 50
Passbook issuance due to lost or mutilated certificate 10
Pledge of account 100
Printing statement of account or deposit receipt 20

Post Office Savings Scheme: Minimum and maximum limits

Scheme Name Post Office Savings Scheme Minimum Limit (in Rs) Post Office Savings Scheme Maximum Limit (in Rs)
Kisan Vikas Patra Account 1,000 None
National Savings Certificate Account 1,000 None
National Savings Monthly Income Account 1,000 4,50,000 in a single account and 9,00,000 in joint account
National Savings Recurring Deposit Account 100 None
National Savings Time Deposit Account 1,000 None
Post Office Savings Account 500 None
Public Provident Fund Account 500 1,50,0000 in 1 year
Senior Citizen Savings Scheme Account 1000 15,00,000
Sukanya Samriddhi Account 250 15,00,000 in 1 year

Post Office Savings Scheme: Premature closure period

Name of Scheme Period of premature closure (After account opening)
Kisan Vikas Patra 2 year 6 months
National savings certificate 5 years
National Savings Monthly Income Account 1 year
National Savings Recurring Deposit Account 3 Years
National Savings Time Deposit Account 6 months
Post office savings account None
Public Provident Fund Account 5 years
Senior Citizen Savings Scheme Account Account can be closed anytime
Sukanya Samriddhi Account 5 years

Post Office Savings Scheme: Maturity

Name of Scheme Post Office Savings Scheme Maturity 
Kisan Vikas Patra TBD by the Ministry of Finance
National Savings Certificate 5 years after the date of investment
National Savings Monthly Income Account 5 years after account opening
National Savings Recurring Deposit Account 5 years after account opening
National Savings Time Deposit Account 1 year, 2 years, 3 years, 5 years (depending on the situation)
Post Office Savings Account NA
Public Provident Fund Account 15 years after account opening
Senior Citizen Savings Scheme Account 5 years after account opening
Sukanya Samriddhi Account After 15 years from the date of investment

Post Office Savings Schemes: Contact information

Toll-free number: 18002666868

You can also visit the official website if you wish to know more

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Debora Berti

Università degli Studi di Firenze, IT

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