Post office Savings Schemes – RD, SCSS, MIS & Term Deposit

September 22nd, 2017 , , Leave a comment

Last updated on September 22nd, 2017 at 06:28 pm

In this article, we will mention about the different post office saving schemes and how you can benefit from them.


Post Office Savings Account

Amount for opening account INR 20
Rate of interest 4% per annum
Minimum balance INR 50

Additional points to note

  • Cheque facility is available for this savings account for which the opening account should be INR 500 and the minimum balance required is also INR 500.
  • Interest earned is tax-free upto INR 10,000.
  • The account can be individual or joint account. The joint account can be owned by 2-3 individuals.
  • You can transfer the account from one post office to another.
  • Any person above the age of ten can open as well as operate the account. After reaching the age of 18, the minor account must be converted.
  • Also, you can convert your single account into a joint account and vice versa.

5-year Post Office Recurring Deposit Account & RD Calculator

Amount for opening account INR 10
Rate of interest 7.1% per annum quarterly compounded

Additional points to note

  • Nomination facility is available at the time of opening as well as after opening the account.
  • You can transfer account from one post office to another.
  • Joint accounts must consist of only two members.
  • Any person above the age of ten can open as well as operate the account. After reaching the age of 18, convert this account.
  • If you open the account between 1-15th of a month, you can make the deposits upto 15th of subsequent months. If you open the account between 16th-30th/31st of any month, you can make the deposits after 16th until the last working day of subsequent months.
  • In case of delay, a default fee of INR 0.05 per every 5 Rs is charged. After 4 defaults the account is discontinued.
  • Also, you one can withdraw upto 50% balance per year.

Post Office Time Deposit Account & Calculator

Amount for opening account INR 200
Rate of interest 1 year A/C- 6.8%

2 year A/C- 6.9%

3 year A/C- 7.1%

5 year A/C- 7.6%

Additional points to note

  • You can open any number of accounts in any of the post office.
  • You can transfer account from one post office to another.
  • The account can be either individual or joint account consisting of 2 adults.
  • Any person above the age of ten can open as well as operate the account. After reaching the age of 18, convert this account

Post office Monthly Income Scheme (MIS) Account

Amount for opening account INR 1500
Rate of interest 7.5% per annum payable monthly

Additional points to note

  • Maximum investment limit is INR 4.5 lakh in a single account and INR 9 lakh in a joint account.
  • The account can be either individual or joint account consisting of 2-3 adults.
  • You can transfer account from one post office to another.
  • You can convert individual accounts into joint account and vice versa.
  • Can be prematurely en-cashed after one year but before 3 years at a deduction of 2% of the deposit and after 3 years at the deduction of 1% of the deposit.

Post office Interest Rate for Senior Citizens (SCSS)

Amount for opening account INR 1000
Rate of interest 7.3% per annum

Additional points to note

  • The interest is payable on 31st March, 30th June, 30th Sept and 31st December.
  • The age of the account holder must be 60 years and above.
  • Maturity period is 5 years.
  • If the amount is below 1 Lakh, you can make the transactions in cash. Above 1 Lakh, you must make the payment by cheque only.
  • You can transfer account from one post office to another.
  • Also,you can open the joint account only with your spouse.
  • You can draw interest through auto credit into savings account standing at the same post office, through PDCs or Money Order.
  • Also, you can close the account prematurely with 1.5% deduction of deposit and after 2 years 1% of the deposit.
  • You can also extend the account for another 3 years postmaturity.

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