Different Post-Office for Small Savings Schemes are as follows:
1. Post-Office Saving Account :
The post-office savings account can be opened minimum of Rs. 50 and maximum of Rs. 1,00,000 by an individual. However, for joint account the upper limit is Rs. 2,00,000/-, but there is no limit for group, institutional or official capacity account.
Withdrawal from the account is by cheques and there is no restriction on withdrawals, unlike in a commercial bank. Accounts having minimum balance of Rs. 200 during April- September and October-March qualify for six monthly prize draws in the next January and July.
The interest is tax free and is 1/2 per cent more than that offered on savings bank account by commercial banks.
2. Post Office Recurring Deposit :
The scheme covers free life insurance cover after receiving contributions for 24 months on account of denomination of Rs. 5, Rs. 10, Rs. 15 or Rs. 20.
In the event of death of the depositor after a minimum period of two years, from the date of opening the account, the heir or nominee will get the full maturity value of the account provided the depositor’s age was between 8 and 53 years and there have been no withdrawals or defaults during the first two years and the account remains current at the time of death.
The benefit of cover is not available for an extended period of deposit beyond five years.
3. Post Office Time Deposit:
A Time Deposit is an investment option that pays annual interest rates compounded quarterly, and is available through post-offices across the country. They are suitable for capital appreciation in the sense that money grows at a pre-determined rate.
Unlike certain other investment options, where returns are commensurate with the risks, the rate of growth is also high; Time Deposits return a lower, but safer, growth in investment.
Therefore, Time Deposits are one of the better ways to get a relatively high interest rate for savings. The only condition is that they are bound for some specific period of time. The investors can borrow against a Time Deposit. The balance in account can be pledged as a security for a loan.
4. Post Office Monthly Income Scheme:
The post-office monthly income scheme (MIS) provides for monthly payment of interest income to investors. It is meant for investors who want to invest a lump-sum amount initially and earn interest on a monthly basis for their livelihood. The scheme is, therefore, a boon for retired persons.
5. National Savings Scheme:
In addition to the above post-office deposit scheme, various National Savings Schemes have been introduced from time to time to mobilise public savings for financing the economic development plans.
These schemes have been very popular in view of tax benefits enjoyed by them. Unlike commercial bank schemes, these schemes are uniform all over the country.
Again, the interest is paid on completed years no payment being admissible for broken periods of a year. Premature encashment is discouraged. Some of the schemes are offered through the State Bank of India /nationalised banks. The national savings certificates sold through S.B.I are designated as “Bank Series”.
Unlike commercial banks schemes, nomination facility is available for all the National Savings Schemes. Accounts can also be transferred from one Post Office to another. Further, many of these savings certificates can be pledged as security, towards loan guarantee.
6. Kisan Vikas Patras:
Such instruments are available at post offices and can be obtained in denominations of Rs. 1000, 5000 and Rs. 10,000. The maturity period here is 5/12 years but premature: encashment is possible. The interest payable on Kisan Vikas Patras is compounded annually but is taxable.
7. Indira Vikas Patras:
These instruments are available at post offices and can be purchased by any person. Minimum investment in Indira Vikas Patras is Rs. 100 and there is no maximum limit.
These are available in the maturity denominations of Rs. 200, 500, 1000 and Rs. 5000 an the investor has to pay half the face value. The initial amount is doubled in 5 years and these: patras cannot be encased premature.
The interest on Indira Vikas Patras is compounded annually, is payable on maturity only and is taxable. These instruments are like bearer-bonds and hence have to be carefully preserved.
8. 15 Years Public Provident Fund Account:
Under this scheme, deposits can be made in lumpsum or in 12 installments, minimum of Rs. 500/- and maximum of Rs. 70,000 in a financial year. These deposits qualify for income tax rebate under Sec. 88-of I.T. Act. Withdrawal is permissible every year from 7th financial year; loan facility is available from 3rd financial year.
9. Deposit Scheme for Retiring Govt. Employees 1988:
This scheme permits only one account which can be opened by retired central/state Govt. employee in its own name or jointly with the response. The account can be opened within three months from the date of receiving the retirements benefits with a minimum of Rs. 1000/- and in multiple thereof can be withdrawn after the expiry of 3 years from the date of deposit.
Only one withdrawal in multiples of Rs. 1000/- can be made in a calendar year. Premature encashment can be made after one year from the date of deposit but before the expiry of 3 years in which case the interest on the amount so withdrawn will be payable from the date of deposit upto the date of withdrawal. The excess interest paid will be adjusted at the time of such withdrawal.
10. Deposit Scheme for Retiring Employees of Public Sector Companies, 1991:
To provide the benefits to the retiring employees of public sector companies, the deposit scheme for retiring govt. employees-1989 was introduced in 1991 for the public sector companies retiring employees.