Government-run small financial savings schemes at present present annual returns to the tune of 4-7.6 per cent. Interest charges on the 9 small saving schemes – together with Post Office Time Deposit, Post Office Recurring Deposit, Post Office Monthly Income, Sukanya Samriddhi, National Savings Certificate and Public Provident Fund (PPF) – are at present reviewed each quarter. For the July-September interval, the rates of interest relevant to small financial savings schemes rates of interest have been stored unchanged at current ranges. India Post – which comes beneath the ambit of Ministry of Communications – has a community of greater than 1.5 lakh put up workplace branches throughout the nation, based on its web site – indiapost.gov.in.
Here are key options of every of the 9 small financial savings schemes, accessible on the designated branches of the put up workplace and industrial banks:
Post Office Savings Account
A financial savings account in a put up workplace is opened in opposition to money fee of a minimal Rs 500. The account holder is required to maintain a minimal stability of the identical quantity. Failing to keep up the required stability results in a upkeep price of Rs 100 on the final working day of every monetary yr.
National Savings Recurring Deposit Account
This scheme is just like a set deposit account, besides the funding is made each month. Investors can switch the account from one designated department to a different. The instalment is paid as much as the 15th day of every month if the account is opened as much as 15th of a calendar month, and as much as the final working day of the month it’s opened between the 16th day and the final working day of a month.
National Savings Time Deposit Account
The time deposit or time period deposit account is available in 4 maturity choices: one yr, two years, three years and 5 years. The account will be opened by money or cheque, and will be prolonged past the time period by submitting an utility within the department.
National Savings Monthly Income Account
In this scheme, the investor places a lump sum quantity within the account by money or cheque, and earn a month-to-month curiosity revenue for the maturity interval of 5 years. A most funding of Rs. 4.5 lakh is allowed on this scheme.
Senior Citizens Savings Scheme Account
This scheme is supposed for senior residents and comes with a maturity interval of 5 years. The account will be opened in opposition to a money fee as much as Rs 1 lakh and cheque fee above Rs 1 lakh.
Public Provident Fund Account
This financial savings scheme comes with a maturity interval of 15 years, which will be prolonged for 5 years at a time. The account will be arrange with a deposit of Rs 500, and a minimal of Rs 500 each monetary yr as much as Rs 1,50,000.
National Savings Certificates Account
These certificates will be bought with a minimal funding of Rs 1,000, and in multiples of Rs 100 with out an higher restrict. For instance, a sum of Rs 1,000 invested within the NSC small financial savings scheme grows to Rs 1,389.49 over a interval of 5 years.
Kisan Vikas Patra Account
The KVP certificates will be bought in opposition to a minimal funding of Rs 1,000, and in multiples of Rs 100 with out an higher restrict. The quantity invested within the Kisan Vikas Patra scheme doubles in a interval of 124 months (10 years and 4 months). The KVP certificates will be transferred from one individual to a different, and from one put up workplace department to a different.
Sukanya Samriddhi Account
A guardian can opens this account in favour of gild youngsters as much as 10 years of age. The account will be arrange in opposition to a minimal funding of Rs 250, as much as Rs 1,50,000 in a monetary yr.
Small Savings Scheme Interest Rates
|Post Office Scheme||Interest Rate|
|Post Office Savings Deposit||4.00%|
|One-Year Time Deposit*||5.5%|
|Two-Year Time Deposit*||5.5%|
|Three-Year Time Deposit*||5.5%|
|Five-Year Time Deposit*||6.7%|
|Five-Year Recurring Deposit||5.8%|
|Five-Year Senior Citizen Savings Scheme||7.4%|
|Five-Year Monthly Income Scheme||6.6%|
|Five-Year National Savings Certificate||6.8%|
|Public Provident Fund Scheme||7.1%|
|Kisan Vikas Patra||6.9%|
|Sukanya Samriddhi Account Scheme||7.6%|
|(Source: India Post)|
* The time deposit financial savings scheme is offered in 4 maturity interval choices: one yr, two years, three years and 5 years.