Postal Savings Schemes: Post Office Savings Bank

Post
Office Savings Bank
POSTAL SAVINGS SCHEMES
JAYACHANDRA SHASTRYCV (09458)

SAI ADITYA CH (09459)
1
A HUMBLE OFFERING TO MOTHER
2
SAI
Background
The Post Office Savings Bank is the oldest and largest
banking institution in the country.
It operates more than 20.50 crore savings accounts.
The Post Office Savings bank Scheme is an agency
function performed by the Department of Posts on behalf
of the Ministry of Finance, Government of India.
 Savings Bank facilities are provided through a network
of more than 1,54,000 post offices.
3
Postal Savings Schemes
There are number of schemes provided by the Post
Office Savings Bank and these include:
 Savings Account Schemes,
 Recurring Deposit Schemes,
Time Deposit Schemes,
Monthly Income Schemes,
Public Provident Fund Schemes,
Kisan Vikas Patras,
National Savings scheme,
National Savings Certificates and
Senior Citizens’ Savings Scheme
4
Savings Account Schemes
Interest Payable, Rates, Periodicity: 3.5% per
annum on individual/ joint accounts.
Investment Limits and Denominations:
Minimum Rs 50/-.
Maximum Rs 1,00,000/- for an individual account. Rs
2,00,000/- for joint account.
Salient features including Tax Rebate:
Cheque facility available.
 Interest Tax Free.
5
Recurring Deposit Schemes
Interest Payable, Rates, Periodicity:
On maturity Rs 10/- account fetches Rs 728.90/-.
Can be continued for another 5 years on year to year
basis.
Rate of interest 7.5% (quarterly compounded)
Minimum Rs 10/- per month or any amount in multiples
of Rs 5/-. No maximum limit.
6
Recurring Deposit Schemes
One withdrawal up to 50% of the balance allowed after
one year.
Full maturity value allowed on R.D. Accounts restricted
to that of Rs 50/- denomination in case of death of
depositor subject to fulfillment of certain conditions.
 6 & 12 months advance deposits earn rebate.
7
Time Deposit Schemes
Interest payable annually but calculated quarterly.
 Period Rate
 1 yr. A/c 6.25%
 2 yr. A/c 6.50%
 3 yr. A/c 7.25%
 5 yr. A/c 7.50%

Minimum Rs 200/- and in multiple thereof.
No maximum limit.
8
A single person can open this account, two adults can open
a joint account.
An adult can open an account on behalf of a minor or a
person of unsound mind.
Authority of Provident Fund, Superannuation Fund or
Gratuity Fund can open group accounts.
Local authority can open a public account.
the Treasurer of Charitable Endowments for India, Trust,
Regimental Fund & Welfare Fund could open institutional
accounts.
9
A cooperative society/bank or scheduled bank can open an
account on behalf of its members, employees or clients.
Gazette officer can open an account in his official capacity.
2,3 & 5 year account can be closed after 1 year at discount.
Account can also be closed after six months but before one
year without interest.
The interest received is tax-free under section 80L of the
Income Tax Act
The investment under this scheme qualify for the benefit of
Section 80C of the Income Tax Act, 1961 from 1.4.2007.
10
Monthly Income Schemes
 8% per annum payable i.e. Rs 80/- will be paid every month on a deposit of Rs
12000/- per annum
 In multiples of Rs 1500/-
 Maximum Rs 4.5 lakhs in single account and Rs 9 lakhs in joint account.
 Maturity period is 6 years
 Can be prematurely encashed after one year but before 3 years at the discount of
2% of the deposit and
 after 3 years at the discount of 1% of the deposit.
 A bonus of 5% on principal amount is admissible on maturity in respect for
accounts opened on or after 8.12.07
 The interest income is exempt from tax under Section 80L of the Income Tax Act,
1961.
11  Moreover, no TDS is deductible on the interest income. The balance is exempt
from Wealth Tax.
Kisan Vikas Patras
 Money doubles in 8 years & 7 months. Facility for premature encashment.
 Rate of interest 8.4% (compounded yearly)
 No limit on investment. Available in denominations of Rs 100/-to 10,000/-,
in all Post Offices and Rs 50,000/- in all Head Post Offices.
 A single holder type certificate may be issued to an adult for himself or on
behalf of a minor or to a minor, can also be purchased jointly by two adults
 there are no tax incentives as per the provisions of the Income Tax Act,
1961.
 the deposits are exempt from Tax Deduction at Source (TDS) at the time
of withdrawal
12
Kisan Vikas Patras
encashment
within a period of one year -No interest is payable in this case.
After the expiry of one year, but before two years and six
months - the face value of the certificate + simple interest at
the specified rate for the completed months
after expiry of two-and-a-half years- the amount payable is as
specified by the government from time to time.
Who is not Eligible
Commercial Companies and institutions are not eligible to
purchase KVP.
NRIs and Hindu Undivided Families cannot purchase
13
THANK YOU
17

Postal Savings Schemes: Post Office Savings Bank

Uploaded by

Copyright:

Available Formats

Postal Savings Schemes: Post Office Savings Bank

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Postal Savings Schemes: Post Office Savings Bank

Uploaded by

Copyright:

Available Formats

Post

Office Savings Bank

POSTAL SAVINGS SCHEMES

JAYACHANDRA SHASTRYCV (09458)

Investment Limits and Denominations:

You might also like