post office Schemes , types of accounts and other

1. Post office scheme (other than ppf and
nps
Team no : 05
Arun Patil
M.A. Keerthi
Praveen
Sagar
Sangmesh
Anita

2. POST OFFICE SAVINGS ACCOUNT(SB)
• It acts as a normal savings account of any bank, and the
account is transferable from one post office to another.
• The minimum deposit to open a post office savings account is
Rs 500.
• The domestic customer can open the account in single or joint
ownership.
• An interest rate of 4% p.a. is applicable on the deposits in the
post office account.
• You can avail of a cheque book, ATM card, e-banking and
mobile banking services, and other services with the account on
request. Interest is credited at the end of each financial year.

3. • Individuals can avail up to Rs 10,000 deduction from the total
income under Section 80TTA of the Income Tax Act.
• Individuals can avail up to Rs 10,000 deduction against interest
income from savings bank account under Section 80TTA of the
Income Tax Act and senior citizens can avail up to Rs. 50,000
under Section 80TTB against interest income from savings
bank account, time deposits, recurring deposits.

4. NATIONAL SAVINGS MONTHLY INCOME
SCHEMES (MIS)
• The interest in this scheme, as the name suggests, is disbursed
monthly. This scheme, like other post office schemes, is
recognized and validated by The Ministry of Finance.
• From 01 January 2024, interest rates for Post Office Monthly
Income Scheme is 6.6% per annum, payable monthly.
• The National Savings Monthly Income Scheme is an excellent
investment option for those looking to earn regular monthly
income. It is ideal for pensioners and those risk-averse
investors

5. • The accounts under the National Savings Monthly Income
Scheme provide a fixed rate of interest, regardless of the
market scenario
• The current interest rate on these accounts is 6.6% p.a.
• The lock-in period of these accounts is only five years
• One can invest as low as Rs 100 in a deposit
• Premature closure of accounts is permitted with a penalty

6. Senior Citizens Savings
Scheme Account(SCSS)​

7. • Senior Citizen Savings Scheme (SCSS)
• Interest payable, Rates, Periodicity etc. Minimum Amount for opening of
account and maximum balance that can be retained
• From 01.01.2024​ , interest rates are as follows:-
• 8.2% per annum, payable from the date of deposit to 31st March/30th Sept/31st
December in the first instance & thereafter, interest shall be payable on 1st April,
1st July, 1st October and 1st January.
• There shall be only one deposit in the account in multiple of INR.1000/-
maximum not exceeding INR 30 lakh.

8. ​Salient features
• (a)Who can open:-
• (i) An individual above 60 years of age.
• (ii) Retired Civilian Employees above 55 years of age and below 60 years of age, subject
to condition that investment to be made within 1 month of receipt of retirement benefits.
• (iii) Retired Defense Employees above 50 years of age and below 60 years of age, subject
to condition that investment to be made within 1 month of receipt of retirement benefits.
• (iv) Account can be opened as individual capacity or jointly with spouse only.
• (v) The whole amount of deposit in a joint account shall be attributable to the first account
holder only.

9. • (b)Deposit:-
• (i) Minimum deposit shall be Rs. 1000 and in multiple of 1000, subject
to maximum limit up to Rs. 30 lakh in all SCSS accounts opened by
an individual.
• (ii) In case any excess deposit made in SCSS account, excess amount
will be refunded immediately to the depositor and only PO Savings
Account Interest rate will be applicable from the date of excess deposit
to the date of refund.
• (iii) Investment under this scheme qualifies for the benefit of section
80C of Income Tax Act, 1961.

10. • (c)Interest:-
• (i) Interest shall be payable on quarterly basis and applicable from the date of
deposit to 31st March/30th June/30th September/31st December.
• (ii) If the interest payable every quarter is not claimed by an account holder, such
interest shall not earn additional interest.
• (iii) Interest can be drawn through auto credit into savings account standing at
same post office, or ECS. In case of SCSS account at CBS Post offices, monthly
interest can be credited into savings account standing at any CBS Post Offices.
• (iv) Interest is taxable if total interest in all SCSS accounts exceeds Rs.50,000/- in
a financial year and TDS at the prescribed rate shall be deducted from the total
interest paid. No TDS will be deducted if form 15 G/15H is submitted and accrued
interest is not above prescribed limit.

11. • (d)Premature Closure:-
• (i) Account can be prematurely closed any time after date of opening.
• (ii) If account closed before 1 year, no interest will be payable and if any interest
paid in account shall be recovered from principle.
• (iii) If account closed after 1 year but before 2 year from the date of opening, an
amount equal to 1.5 % will be deducted from principal amount.
• (iv) If account closed after 2 year but before 5 year from the date of opening, an
amount equal to 1 % will be deducted from principal amount.
• (v) Extended account can be closed after the expiry of one year from the date of
extension of the account without any deduction.

12. • (e)Account closure on maturity:-
• (i) Account may be closed after 5 year from the date of opening by
submitting prescribed application form with passbook at concerned
Post Office.
• (ii) In case of death of account holder, from the date of death, account
shall earn interest at the rate of PO Savings Account.
• (iii) In case spouse is a joint holder or a sole nominee, account can be
continued till maturity if spouse is eligible to open SCSS account and
not have another SCSS Account.

13. • (f)Extension of Account:-
• (i) Account holder may extend the account for further period for 3 years from the
date of maturity by submitting prescribed form with passbook at concerned post
office.
• (ii) Account can be extended within 1 year of maturity.
• (iii) Extended account shall earn interest at the rate applicable on the date of
maturity.
• Note:- Senior Citizen Savings Scheme Rules 2019

14. National Savings Certificates
(VIIIth Issue) (NSC)

15. • National Savings Certificates (NSC)
• Scheme Interest payable, Rates, Periodicity etc. Minimum Amount for
opening of account and maximum balance that can be retained
• National Savings Certificates (NSC)
• 5 Years National Savings Certificate (VIII Issue)
• From 01.01.2024​, interest rates are as follows:-
• 7.7 % compounded annually but payable at maturity.
• Minimum of Rs. 1000/- and in multiples of Rs. 100/- No Maximum Limit
• ​​Salient features

16. • (a) Who can open :-
• (i) a single adult
• (ii) Joint Account (up to 3 adults)
• (iii) a guardian on behalf of minor or on behalf of person of unsound mind
• (iv) a minor above 10 years in his own name.
• (b) Deposit:-
• (i) Minimum Rs. 1000 and in multiple of Rs. 100 , no maximum limit.
• (ii) Any number of accounts can be opened under the scheme.
• (iii) Deposits qualify for deduction under section 80C of Income Tax Act.

17. • (c) Maturity:-
• -> The deposit shall mature on completion of five years from the date of the deposit.
• (d) Pledging of account:-
• (i) NSC may be pledged or transferred as security, by submitting prescribed
application form at concerned Post Office supported with acceptance letter from the
pledgee.
• (ii) Transfer/pledging can be made to the following authorities.
• -> The President of India/Governor of the State.
• -> RBI/Scheduled Bank/Co-operative Society/Co-operative Bank.
• -> Corporation (public/private)/Govt. Company/Local Authority.
• -> Housing finance company.

18. • (e) Premature closure:-
• -> NSC may not be prematurely closed before 5 years except the following
conditions : -
• ​(i) On the death of a single account, or any or all the account holders in a joint
account
• (ii) On forfeiture by a pledgee being a Gazetted officer.
• (iii) On order by court.

19. • (f) Transfer of account from one person to another person.:-
• -> NSC may be transferred from one person to another person on the
following conditions only.
• ​(i) On the death of account holder to nominee/legal heirs.
• (ii) On the death of account holder to joint holder(s).
• (ii) On order by the court.
• (iii) On pledging of account to the specified authority.

20. Sukanya Samrddhi Yojana
The Sukanya Samriddhi Yojana (SSY) is a government-backed savings
scheme in India specifically designed for the benefit of the girl child. It was
launched by the Government of India as part of the Beti Bachao Beti Padhao
campaign in January 2015 under the Ministry of Finance. The primary
objective of this scheme is to promote the welfare and empowerment of the
girl child by facilitating long-term savings and financial planning for her
future education and marriage expenses.

21. Eligibility
• Age of the Girl Child: The SSY account can be opened only for a girl child who is below the age of 10
years. This means that the girl child should not have completed 10 years of age on the date of opening the
account.
• Residence Status: The scheme is available for all residents of India, including resident individuals as well as
Non-Resident Indians (NRIs).
• Number of Accounts per Family: Only one SSY account can be opened for a single girl child.
Additionally, a maximum of two SSY accounts can be opened in a family, provided that the family has two
girl children.
• Legal Guardianship: The account can be opened and operated by either the natural parents or legal
guardians of the girl child.
• Documentation: To open an SSY account, the parent or guardian needs to provide certain documents such as
the birth certificate of the girl child, identity proof, and address proof of the depositor, along with the account
opening form.

22. Interest rates :
The interest rate for Sukanya Samriddhi Yojana (SSY) is currently 8.2% per annum, which is compounded
annually.
Tax benefits :
Investment: Contributions you make towards SSY qualify for a tax deduction under Section 80C of the Income Tax
Act. The maximum deduction allowed is Rs. 1.5 lakh per year. This means you can potentially lower your taxable
income by the amount you invest in SSY.
•Interest: The interest earned on your SSY investment is completely exempt from income tax under Section
10. This allows you to grow your corpus for your daughter's future without any tax implications on the interest
earned.
•Maturity/Withdrawal: The maturity amount you receive upon account maturity or even in case of a
premature closure under specific conditions is also exempt from income tax. This ensures you get the full
benefit of your investment and the accumulated interest.
Note : The tax deduction benefit under Section 80C is not available if you choose the new tax regime under
Section 115BAC

23. Senior citizen saving scheme
The Senior Citizen Saving Scheme (SCSS) is a specialized savings scheme
offered by the government of India for individuals aged 60 years or above.
Designed to cater to the financial needs of senior citizens, the SCSS
provides attractive interest rates, tax benefits, and a secure investment
avenue. With a maximum investment limit of Rs. 15 lakhs per individual
and a tenure of 5 years, extendable for another 3 years, the SCSS serves as
a reliable source of income for retirees seeking steady returns and financial
stability.

24. Eligibility
Age Requirement: Individuals must be 60 years of age or older at the time of opening an SCSS account.
In some cases, individuals aged 55 years or above but less than 60 who have retired on superannuation or
under a voluntary or special voluntary retirement scheme are also eligible to open an account.
Citizenship: The scheme is available to Indian citizens as well as Non-Resident Indians (NRIs) and
Persons of Indian Origin (PIOs) who fulfill the age requirement.
Investment Limit: Each individual can invest a maximum of Rs. 15 lakhs in the SCSS. This amount can
be deposited in multiples of Rs. 1,000.
Number of Accounts: There is no restriction on the number of SCSS accounts an individual can open,
provided the total investment across all accounts does not exceed the maximum limit

26. Tax benefits
• Tax Deduction under Section 80C: Investments made in the SCSS are eligible for a deduction
under Section 80C of the Income Tax Act, 1961. The maximum deduction allowed under this
section is Rs. 1.5 lakhs per financial year across all eligible investment avenues, including SCSS.
This deduction can help reduce taxable income, thereby lowering overall tax liability.
• Tax on Interest Income: While the interest earned on the SCSS is taxable, it is subject to a
deduction of up to Rs. 50,000 per financial year under Section 80TTB specifically for senior
citizens. This deduction is applicable to the total interest income earned from all sources, including
SCSS deposits, savings accounts, fixed deposits, etc.
• Tax at Source (TDS): The interest earned on SCSS deposits is subject to Tax Deducted at Source
(TDS) if it exceeds Rs. 50,000 in a financial year. the TDS rate applicable to SCSS interest is 10%.
However, if the total income is below the taxable limit, they can submit Form 15H (for individuals
below 60 years) or Form 15G (for individuals above 60 years) to the bank to avoid TDS deduction.
• Exemption on Maturity Proceeds: The maturity proceeds from the SCSS, including the principal
amount and accumulated interest, are exempt from wealth tax.

27. KISAN VIKAS PATRA YOJANA
Kisan Vikas Patra Yojana is a savings certificate scheme, which was
launched in the year 1988 by India Post. This is a government-initiated
scheme that aims to boost small savings among investors for a secured
future. Kisan Vikas Patra, allows investors to invest for the long-term. The
maximum tenure of the scheme is of 9 years & 10 months. Initially, KVP
was launched specifically for farmers to encourage them to save for the
long-term, but now it can be availed by all.

28. Eligibility
• Age Requirement: A candidate must be at least 18 years old and a citizen of India. Adults may
submit applications on behalf of minor applicants.
• Citizenship: The scheme is open to Indian citizens residing in India. Non-resident Indians (NRIs)
are not eligible to invest in KVP.
• Type of Investors : KVP can be purchased by individuals, joint individuals, or minors (through
their legal guardians). Additionally, trusts can also invest in KVP.
• Investment Limit: There is no upper limit on the amount that can be invested in KVP. However,
investments must be made in denominations specified by the government, which could be as low
as Rs. 1,000.
• Documentation: Investors need to provide Know Your Customer (KYC) documents, such as
identity proof, address proof, and photographs, as per the guidelines provided by the issuing
authority, typically a post office or a bank.

29. Interest rate & Tax benefits
Interest rate : Kisan Vikas Patra scheme is a savings plan which offers fixed interest rates and
aims to multiply the funds within a given time frame. The current KVP interest rate is 6.9%.
Tax benefits
• The Kisan Vikas Patra Scheme does not offer any tax benefits. The interest earned on the
investment is taxable under ‘Income and Other Source’ that is paid every year. Moreover, a
TDS of 10% is also deducted from the interest. Although, the final maturity amount is
exempted from any tax deductions.

30. National Savings Time
Deposit Account(TD)

31. • Post Office Time Deposit Account (TD)
• Interest payable, Rates, Periodicity etc. Minimum Amount for opening of account and
maximum balance that can be retained
• Interest payable annually but calculated quarterly. Minimum INR 1000/- and in multiple
of 100. No maximum limit.
• Interest rates From 01.01.2024 to 31.03.2024
• ​Period Rate
• 1yr.A/c 6.9%
• 2yr.A/c 7.0%
• 3yr.A/c 7.1%
• 5yr.A/c 7.5 %

32. Salient features
• (a)Who can open :-
• (i) a single adult
• (ii) Joint Account (up to 3 adults) (Joint A or Joint B)
• (iii) a guardian on behalf of minor
• (iv)a guardian on behalf of person of unsound mind
• (v) a minor above 10 years in his own name.
• Note:- Any number of account can be opened.

33. • (b)Deposits :-
• (i) Account type for 1 year, 2 year, 3 year, 5 year.
• (ii) Account can be opened with minimum of Rs. 1000 and in multiple of Rs. 100.
No maximum limit for investment.
• (iii) Interest shall be payable annually, No additional interest shall be payable on
the amount of interest that has become due for payment but not withdrawn by the
account holder.
• (iv)The annual interest may be credited to the savings account of the account
holder by submitting application.
• (v) The investment under 5 year TD qualifies for the benefit of section 80C of
Income Tax Act, 1961.

34. • (c)Maturity :-
• (i) Deposit amount shall be repayable after expiry of 1 year, 2 year, 3 year, 5 year (as the case may
be) from the date of opening.
• (d)Extension of Account :-
• (i) On maturity depositor may further extend TD account for another tenure for which account was
initially opened.
• (ii) TD account can be extended from date of maturity within the following prescribed period.. 1
year TD = within 6 months of maturity. 2 year TD = within 12 months of maturity. 3/5 year TD =
within 18 months of maturity.
• (iii) At the time of opening of account depositor can submit request for extension of account from
the date of maturity.

35. • (iv)TD account can be extended after maturity by submitting prescribed application form at
concerned Post Office along with passbook.
• (v) Interest rate applicable to respective TD account on the day of maturity shall be applicable
to the extended period.
• (e)Premature closure of Account :-
• (i)No deposit shall be withdrawn before the expiry of six months from the date of deposit.
• (ii) If TD account closed after 6 month but before 1 year, PO Savings Account Interest rate will be
applicable.
• (iii) If 2/3/5 year TD account prematurely closed after 1 year, interest shall be calculated 2 % less than
of TD interest rate (i.e. 1/2/3 years) for completed years, and for part period less than a year, PO Savings
Interest rates will be applicable.
• (iv)TD account can be closed prematurely by submitting prescribed application form with pass book at
concerned Post Office.

36. • (f)Pledging of TD account :-
• (i) A TD account may be pledged or transferred as security, by submitting prescribed application
form at concerned Post Office supported with acceptance letter from the pledgee.
• (ii) Transfer/pledging can be made to the following authorities.
• The President of India/Governor of the State.
• RBI/Scheduled Bank/Co-operative Society/Co-operative Bank.
• Corporation (public/private)/Govt. Company/Local Authority.
• Housing finance company.
• ​​Note:- National Savings Time Deposit Rules 2019 ​ ​