Gone are the days when you used to eagerly wait for the postman to deliver your letters. Today, most of the communication happens over social media like Facebook or emails, where you can talk to family and friends in seconds. All you need is a Smart phone, Tablet, Laptop or a Desktop.
Does this mean your neighborhood post office has lost its value? India Post is a Government operated and managed postal system in India. India has the largest postal network in the World.
But, the post office is not all about letters. Post offices offer a number of important investment schemes called post office schemes, in which crores of our citizens invest their hard earned money. Let’s take a look at a couple of important post office schemes.
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Important Post Office Saving Schemes
1. Post Office Time Deposits (POTD)
- You and a number of citizens invest in the post office time deposits popularly called POTD.
- You can invest in the POTD at the nearest post office. You can open an account by paying in cash/cheque.
- POTD offers interest of 6.6% on a 1 year account and 7.4% on a 5 year account.
- You have the nomination facility for POTD.
- You can open any number of accounts at the post office.
- You can open the POTD Account in the name of a minor who is 10 years and above.
- Two adults can open a joint POTD account at the post office.
- If an account is opened in the name of a minor, when this minor attains maturity, this account needs to be converted.
- The account under 5 year POTD, enjoys tax benefits under Section 80C of the income tax act.
2. Post Office Monthly Income Scheme (POMIS)
- Any individual can open a post office monthly income scheme (POMIS).
- This account can be opened in cash or cheque. The maximum investment limit is Rs 4.5 Lakhs in a single account and Rs 9 Lakhs in a joint account.
- POMIS offers interest of 7.3% a year payable monthly.
- POMIS offers the nomination facility.
- You can transfer the POMIS account from one post office to another.
- Two or three adults can open a joint POMIS at any post office.
- If 2 or 3 individuals open a POMIS account, this is a joint account and each account holder has an equal share in the joint account.
- POMIS has a maturity period of 5 years.
- POMIS can be opened in the name of a minor and when the minor attains maturity, this account needs to be converted.
- The interest you earn from POMIS can be auto credited into your SB account through ECS (Electronic Clearing System). ECS is an electronic mode of fund transfer from one bank account to another. Monthly interest can be credited into your SB account.
- POMIS can be encashed prematurely after a year, but before 3 years at a 2% discount on the deposit and at 3 years at a discount of 1% on the deposit.
SEE ALSO: GST Changes Which May Come Soon
3. Kisan Vikas Patra (KVP)
Rate of interest:
The rate of interest applicable on Kisan Vikas Patra (KVP) has been changed. From 1.01 .2018, an interest of 7.3% will be compounded annually on KVP.
Contribution and deposits:
- The minimum amount for opening a KVP account is Rs 1,000.
- There is no limit on the maximum balance to be retained.
- However, deposits should be made in multiples of Rs 1000.
- Any adult can purchase a KVP certificate.
- An adult can also hold a certificate on behalf of a minor.
- A certificate can also be held by two adults jointly.
- You can purchase a KVP from any Departmental Post office.
- Nomination facility is available.
- Transfer of KVP from one person to another is allowed.
- Transfer of KVP from one post office to another is allowed.
- KVP certificate can be en cashed after two and a half years from the date of issue.
- The amount invested in KVP doubles in 118 months, (9 years and 10 months), to be precise.
5 Years National Savings Certificate (VIII Issue):
Rate of interest:
Rate of interest applicable on 5 Years National Savings Certificate (VIII Issue) has been changed. From 1.01 .2018, an interest of 7.6% will be compounded annually, but payable at maturity.
Contribution and deposits:
- The minimum amount for opening a KVP account is Rs 100.
- There is no limit on maximum balance to be retained.
- However, deposits should be made in multiples of Rs 100.
- Deposits qualify for tax rebate under Section 80C.
- The interest accrues annually, but is deemed to be reinvested under Section 80C.
- Certificates which are a single holder type, can be purchased by an adult.
- A single holder type certificate can also be purchased by an adult on behalf of a minor.
- A single holder type certificate can be held by a minor.
- A deposit of Rs 100 grows to Rs 144.23 after 5 years.
- The maximum number of times an NSC VIII can be transferred from one person to another, is once from the date of issue to the date of maturity.
- At the time of the transfer, no new certificate will be issued. The same old certificate will be transferred. The name of the old holder is rounded and the name of the new holder is mentioned. On the purchase application, in case of non CBS Post offices, the Postmaster should give his authorized signature under dated signatures, along with his designation stamp and date stamp of the Post office.
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