PerFin India » post office http://www.perfinindia.com Personal Finance and investments Wed, 01 Feb 2012 05:49:20 +0000 en hourly 1 http://wordpress.org/?v=3.1.3 Post Office Interest Rates 2012 http://www.perfinindia.com/2012/01/post-office-interest-rates-2012/ http://www.perfinindia.com/2012/01/post-office-interest-rates-2012/#comments Tue, 24 Jan 2012 02:28:06 +0000 Shiva http://www.perfinindia.com/?p=891 Unlike the previous two years where the post office interest rates did not see much change there is a slight difference for this year 2012 where we did see some increase in interest rates for most of the schemes available at the post offices in India like their regular saving account, Time Depost, recurring deposit, MIP, NSC and most importantly the Public Provident Fund (PPF) which all witnessed an increase in rates from this year onwards.  While the other schemes do not help you save on tax, while NSC and PPF remain the best option in terms of safe investments which can help you save tax till this year.

 

All the below mentioned interest rates are applicable throughout from January 2012 to December 2012 until and unless the government decides to change it in between

 

Post Office Savings Account:

The interest rate has been raised for the regular Post Office Savings Account on par with the bank saving accounts.  Now the new interest rate being 4% p.a.  The interest from this account is tax free unlike the bank saving accounts.

 

Post Office Time Deposit

The post office time deposit or fixed deposit has the following interest rates for various tenure

1 year – 7.70% p.a.

2 years – 7.80% p.a.

3 years – 8.00% p.a.

5 years – 8.30% p.a.

 

The rates mentioned on the above mentioned fixed deposits from post offices are slightly lesser when compared with the bank fixed deposits.

 

5 year post office Recurring deposit:

The Rs. 10 if deposited in the recurring deposit per month will fetch you Rs. 738.62 after the 5 year tenure and you can calculate the yields according to your deposits.

 

PostOffice Monthly Income Account Scheme

The interest rate for the Monthly Income Scheme (MIS) is 8.20% p.a.  Minimum Rs. 1500 and maximum Rs. 4.5 lakhs.  The date of maturity will be 5 years from start.

 

National Savings Certificate (NSC) 5 years

The tenure for this scheme has been reduced to 5 years against the 6 years previously.  The interest rate being 8.4% p.a.  The interest rate Your Rs. 100 invested in this NSC scheme will grow to Rs. 150.90.  The lock-in period is 5 years.

 

National Savings Certificate (NSC) 10 years

This is a new scheme introduced from last year.  The rate of interest being 8.7% p.a.  The lock-in period is 10 years.

 

Public Provident Fund (PPF) 15 years

The all time popular tax saving scheme till now PPF interest rate is increased to 8.6% p.a. from December 2011 and will continue throughout 2012 as well and hence the best tax saving scheme among others available till now.  The minimum amount for investment is Rs. 500 per year.  The maximum amount has been revised recently to Rs. 1 lakh as against Rs. 70,000 previously.

 

Senior Citizen Savings Scheme

The interest rage for this scheme is 9.0% p.a.  The minimum amount deposit is Rs. 1000 and in multiples.  The lock-in period is for 5 years.

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]]> http://www.perfinindia.com/2012/01/post-office-interest-rates-2012/feed/ 0 Post Office Interest Rates 2011 http://www.perfinindia.com/2011/01/post-office-interest-rates-2011/ http://www.perfinindia.com/2011/01/post-office-interest-rates-2011/#comments Sat, 01 Jan 2011 13:34:04 +0000 Shiva http://www.perfinindia.com/?p=464 Just like the last year’s interest rate which did not see much change, here is the update list of Post Office Interest Rates 2011.  Although there had been not much change in the rates, here is the updated list of different interest rates on many of the schemes that post office offer.

Post Office Savings Account:

The interest rate for the regular post office savings account is 3.5% per annum just like the bank savings account.  It can be held individually or jointly.  The minimum amount that one can hold at the Post Office Savings account is Rs. 50 while the maximum is Rs. 1 lakh for single and 2 Lakhs for joint accounts.  The interest earned by this option is tax free and the cheque book option is available.

Post Office Time Deposit Account:

This, Post Office Time Deposit is nothing but the regular fixed deposit but held at the post office.  The interest is paid on an annual basis but is calculated on a quarterly basis.

  • 1 year – 6.25%
  • 2 years – 6.50%
  • 3 years – 7.25%
  • 4 years – 7.50%

Five Years Post Office Recurring Deposit:

The rate of interest for this much famous recurring deposit from post office is 7.5% which is quarterly compounded.  One can just withdraw up to 50% of the total available balance in this account after one year of the deposit.

PostOffice Monthly Income Account:

The interest rate for the Post Office Monthly Income Account is 8% p.a.  The minimum investment being Rs. 1500 and the maximum amount is Rs. 4.5 lakhs.

KisanVikas Patra:

With this once much famous deposit option of Kisan Vikas Patra, one can an interest rate of 8.4%, i.e., your money doubles in 8 years and 7 months under the special scheme available at all post offices across India.

National Savings Certificate (VIII issue):

The interest rate for the NSC (National Savings Certificate) is 8%, where it is compounded on a 6 monthly basis.  With this option one can avail tax rebate under 80C.

Public Provident Fund (PPF):

This is a 15-year Public Provident Fund scheme in which you can earn 8% per annum interest (compounded yearly).  The minimum amount you can deposit on your PPF account Rs. 500 per annum and the maximum deposit is Rs. 70,000 per annum.  The investment made at the post office PPF qualifies for the tax rebate under section 80C.  Even the interest earned via the this scheme is tax free and thus making it an ideal investment option for those looking for long term compounded benefits.

Senior Citizens Savings Scheme:

The interest rate under this savings scheme is 9% per annum.  The minimum deposit is Rs. 1000 and maximum is Rs. 15 lakhs.  The maturity period for this scheme is 5 years.

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]]> http://www.perfinindia.com/2011/01/post-office-interest-rates-2011/feed/ 4 Interest Rates on Post Office Saving Schemes 2009-2010 http://www.perfinindia.com/2009/12/interest-rates-on-post-office-saving-schemes-2009-2010/ http://www.perfinindia.com/2009/12/interest-rates-on-post-office-saving-schemes-2009-2010/#comments Wed, 30 Dec 2009 17:50:43 +0000 Shiva http://www.perfinindia.com/?p=50 These are the updated and current interest rates on various post office savings schemes currently available.  All the interest rates are applicable for the current month and year December 2009 as well as for January 2010 and is valid throughout 2010 until and unless there is any changes announced by Government of India in the next budget in March 2010.

Post Office Savings Account – 3.5% per annum

Post Office Time Deposit (Fixed Deposit)
1 year – 6.25%
2 years – 6.50%
3 years – 7.25%
5 years – 7.5%

Monthly Income Account – 8% per annum

Post Office Recurring Deposit – 7.5% (compounded quarterly)

Kisan Vikas Patra – 8.4% (compounded yearly). Money actually doubles in 8 years and  7 months.

15-year Provident Fund (PF) Account – 8% per year (compounded yearly).

National Savings Certificate (NSC) – 8% with 6 monthly compounded interest.

Senior citizens savings scheme – 9% per annum.

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]]> http://www.perfinindia.com/2009/12/interest-rates-on-post-office-saving-schemes-2009-2010/feed/ 33 Kisan Vikas Patra http://www.perfinindia.com/2009/12/kisan-vikas-patra/ http://www.perfinindia.com/2009/12/kisan-vikas-patra/#comments Thu, 03 Dec 2009 04:06:15 +0000 Shiva http://www.perfinindia.com/?p=20 If in less than nine years you want to double your investments, you should invest in Kisan Vikas Patras. It is a long term, fixed interest tool for investment. They are available in all Head Post Offices as well as authorized post office in India. KVP’s are considered to be very safe investment tool, as the Indian Government backs it. The principal is guaranteed and it is a safe scheme for investing your money. KVP is good for an investment increase as it collects the money at a fixed rate and then doubles the money at the end of a given period. It is for people who want guarantee returns. No preferential tax treatment is available for KVP, which shows that it is not qualified for investment under Section 80C of the Income Tax Act.

Who Can Purchase:

  • A minor
  • Two adults can jointly purchase
  • A trust
  • An adult in his name or on minor’s behalf

Maturity Amount/ Time Period

  • From 1st March 2003, the amount invested gets doubled on maturity after 8 years 7 months.

Rate of Interest

  • KVP offers 8.25% interest rate per annum. The rate of interest and maturity are aligned in a way that the investment in KVP gets doubled at maturity.

Nomination

  • Facility for nomination is available.

Deposit Limits

  • Certificates are provided in denominations of Rs. 100, 500,1000, 5000, 10,000 and 50,000
  • No maximum limit is set for purchase of certificates

Benefits of Tax

  • You get no income tax benefit under Kisan Vikas Patra
  • Deposits made by you are exempted from Tax Deduction at Source during the withdrawal time.

Premature Encashment:

  • This is not permitted except for a discount in case of death of the holders, or when court orders

Encashment Place/ Discharge on Maturity:

  • Post office can encash or discharge from where it is registered or from any other post office

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]]> http://www.perfinindia.com/2009/12/kisan-vikas-patra/feed/ 8 15-Year Public Provident Fund Account http://www.perfinindia.com/2009/12/15-year-public-provident-fund-account/ http://www.perfinindia.com/2009/12/15-year-public-provident-fund-account/#comments Wed, 02 Dec 2009 04:13:04 +0000 Shiva http://www.perfinindia.com/?p=16 For all tax saving investments, public provident fund is the best; this shows, because we get deduction in our income by investing in it, but we still do invest. The interest earned on this public provident fund is tax free, the Government of India runs the scheme so it is extremely safe. You will not have to worry about someone running away with your money in this case.

How To Open and Apply for The Account

In order to open a PPF account, go to a branch of State Bank of India, even the subsidiary branches of SBI can open this account for you. You can find the list of these banks online, and visit the nationalized bank that is convenient for you. Even the head post office or some selected grade sub post offices also open these accounts. After filling up the form, which can be downloaded from the website of SBI, you attach a passport size photograph on the form and submit it with you Permanent Account Number. In case you don’t have a PAN card then you can get an attested copy of your voter’s ID card or ration card. After your account is opened you get a passbook.

Who Can Subscribe

Any individual in his name or on behalf of a minor can apply for a PPF account in addition to GPR account. The PPF account can be only opened in one name.

Subscription

15 Year Public Provident Fund Account needs a contribution of 16 in all. The annual subscription amount ranges from Rs. 500 to Rs. 70,000 which is payable either in a lump sum or in easy installments, but not exceeding 12 years.

Rate of Interest

Deposited money in the account earns 8% rate of interest per annum, which is annually compounded. Interest is paid on the lowest balance, which is between the 5th day and the last day of the month.

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]]> http://www.perfinindia.com/2009/12/15-year-public-provident-fund-account/feed/ 1 Post Office Monthly Income Account http://www.perfinindia.com/2009/12/post-office-monthly-income-account/ http://www.perfinindia.com/2009/12/post-office-monthly-income-account/#comments Mon, 30 Nov 2009 18:58:31 +0000 Shiva http://www.perfinindia.com/?p=14 Post office monthly income account is helpful for investors who want to invest large amount and earn monthly interest for their living. This scheme is excellent for retired as well as handicapped people. They can deposit an amount in their account and assured for rest of their lives. Every month they would get some amount on which they can live on. People who are reaching retirement go in for this scheme. Their savings is put in a post office under monthly income head and they can be happily spend their life with family and friends, and the money deposited would take care of their monthly income.

How to Invest

  • You can invest in any of the post offices or the sub post office either by cash or demand draft and even local cheques are accepted.
  • A form has to be filled and then submitted with the amount
  • The form will entitle you to withdraw a given amount monthly.

Who Can Invest

  • Jointly, 2/3 adults
  • Single adult
  • A minor, but should be of 10 years of age and above
  • A guardian on minor’s behalf

Rate of Interest and Maturity

  • This is a 6 years account with 8% per annum payable on monthly basis.
  • You can avail the facility of premature encashment only after one year.
  • There is reinvestment facility available on account maturity.
  • Free of cost, account can be transferred to any post office in India.
  • Maturity bonus of 5% is given.
  • Investment of a minor is not combined with the guardian.
  • 1% is deducted from the account if you close it prematurely at any time after 3 year

Tax Benefits

  • Deposits are exempted from the Wealth Tax
  • There is no TDS
  • Deposits are not eligible under section 80C for rebate.

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]]> http://www.perfinindia.com/2009/12/post-office-monthly-income-account/feed/ 1 Post Office Time Deposit Account http://www.perfinindia.com/2009/11/post-office-time-deposit-account/ http://www.perfinindia.com/2009/11/post-office-time-deposit-account/#comments Mon, 30 Nov 2009 04:05:41 +0000 Shiva http://www.perfinindia.com/?p=11 Post Office Time Deposit Account is kind of a fixed deposit account, which is offered by all the Post Offices of India. This type of saving plan is very beneficial for investors who want to deposit a lump sum for a definite time period. At the time of maturity, investors get the lump sum invested (Principal + Interest), where the interest rate on the investment depends on your deposit terms. Nomination facility is provided under Post office Time Deposit scheme. Minimum amount that is required to open this account is Rs. 200 and there is not maximum limit set.

Who All Can Open Post Office Time Deposit Account

  • Two adults can jointly open this account or a single adult can also do so
  • Group Account by Gratuity fund, provident fund or superannuation fund
  • In the official capacity a gazetted officer
  • A cooperative bank/ society or a scheduled bank on behalf of the bank members
  • By local body/ authority- Public account

Duration/ Tenure:

Time deposits can be made for the period of 1, 2,3, and 5 years.

Rate of Interest:

The interest rate depends on the tenure like the fixed deposits in the bank

Duration          Interest

  • 1 year              6.25%
  • 2 years             6.50%
  • 3 years             7.25%
  • 5 years             7.50%

Payouts

At the end of every year during the tenure interest is paid out at the time deposit. At the time of maturity principal is paid back

Facility to Nominate

Nomination facility is provided for the Post Office Time Deposit Account.

Where to Open an Account

This type of account can be opened in any of the sub post office or head post office.

Income Tax Benefits

Post Office Time Deposit Account like the bank’s FD’s can be opened for a period of 5 years and avail the benefits under sec 80C of the Income Tax Act.

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