a single adult Indian citizen Joint A or Joint B: two adults living together A guardian for a minor over the age of 10 A guardian needed on behalf of a mentally ill person Anyone over the age of 10 can open under their own name. Important details to remember: In India, only one account per person is permitted at each post office. Only one account per person, either in their own name or through a guardian, is allowed for minors and mentally ill individuals. The account holder who survived the death of the joint account holder becomes the account’s sole owner. The joint account must be closed if the survivor already has one account. You cannot convert a single account to a joint account or vice versa.
When opening the account, you must name a beneficiary. To change the account to their own name, minors who turn 18 must submit a new account opening form and KYC documents. Transfers and Deposits: All withdrawals and deposits must be made in full rupees. Rs. 500 is the minimum deposit; subsequent deposits can be as little as Rs. 10)
A withdrawal of Rs. 50
There is no maximum deposit amount. If a withdrawal lowers the balance below Rs, you cannot do so. 500.
A maintenance fee of Rs. 50 will be deducted from the account’s balance if it does not reach Rs. 500 by the end of the fiscal year. Account closure will occur automatically if there is no balance. Interest:
Between the 10th and the end of each month, interest is calculated based on the minimum balance, which is rounded to the nearest whole rupee. If the balance falls below Rs. 500 between the 10th and the last day of the month, no interest is paid. The Ministry of Finance determines the annual rate at which interest is credited to your account. Up until the month before your account closes, you earn interest. Savings account interest is exempt from tax under Section 80TTA of the Income Tax Act up to Rs. 10,000 per fiscal year. Unspoken Accounts: An account with no deposits or withdrawals for three consecutive financial years is considered inactive or dormant.
You can close these accounts at the post office by filling out an application with your passbook and new KYC documents. Additional Services: A form must be downloaded and submitted to these services at your local post office: Book of checks Credit card Mobile banking and internet banking Seeding with Aadhaar (linking your Aadhaar card) The government’s pension plan is called Atal Pension Yojana (APY). The Pradhan Mantri Suraksha Bima Yojana is a scheme for life insurance. The Pradhan Mantri Jeevan Jyoti Bima Yojana is a scheme for life insurance. 2. Plan for Monthly Income at the Post Office As of April 2024, the interest rate on the post office monthly income plan is 7.4% per year, payable monthly. Each quarter, the interest rate is adjusted. The investment term is set at five years. With subsequent deposits in multiples of 1,000, the minimum investment is 1,000. For a single account, the maximum investment is 9 lakh, while for a joint account, it is 15 lakh. Account holder: A resident Indian adult (individually or jointly) or a minor over the age of 10 (with a guardian) may open the account. Maturity: At the end of the five-year term, the invested amount and any interest that has been accrued are returned. Taxes: Interest earned is taxable in accordance with your income tax bracket. Security: Backed by the Indian government, this makes sure your money is safe. 3. Patra Kisan Vikas (KVP) Type of investment: KVP is a certificate-based scheme in which you invest a lump sum for a predetermined period of time. Currently, the maturity period for an investment is 115 months, or approximately 9.5 years. The initial investment is 1,000, and subsequent installments are in multiples of 100. There is no upper limit. Returns: As of April 1, 2024, KVP’s interest rate is currently set at 7.5% per year. The maturity amount is intended to double your investment and the interest is compounded annually. KVP can be purchased by one adult (for themselves or a minor), two adults (with different payout options), or even a minor over the age of 10 for their own account. Benefits from taxes: KVP does not provide benefits from Section 80C for tax deductions, unlike some investment options. However, the interest you earn will be subject to taxation based on your income tax bracket. Liquidity: KVP has a 2.5-year lock-in period. In most cases, premature encashment is not permitted, with the exception of exceptional circumstances like the holder’s death or a forfeiture by a government official. 4. Yojana Sukanya Samriddhi An SSY account can only be opened in the name of a girl child under the age of 10 by her parent or legal guardian. A family can open up to two SSY accounts, one for each girl child.
The account’s maturity date is 21 years from the opening date. Investment period: However, if the girl child marries before she turns 18, it matures earlier. Minimum and maximum deposits: To keep the account active, a minimum of 250 yen must be deposited each fiscal year. The annual maximum deposit is 1.5 lakh rupees. Rate of interest: As of April 1, 2024, SSY offers a competitive annual interest rate of 8.2%. Each year, the interest is added up. Benefits from the tax code: Under Section 80C of the Income Tax Act, deposits made toward SSY are eligible for a yearly tax deduction of up to 1.5 lakh. Additionally, both the maturity amount credited and the interest you earn are exempt from tax. Opening an account: All authorized branches of public sector banks, some private sector banks, and India Post offices are authorized to open SSY accounts. Account closure: Premature account closure is generally not permitted, with the exception of exceptional circumstances like the girl child’s medical needs or her death. 5. Certificate of National Savings Type of investment: Like Kisan Vikas Patra, NSC is a certificate-based scheme in which you invest a lump sum for a predetermined period of time. Period of investment: The lock-in period for this plan is five years. In most cases, encashment prior to maturity is prohibited. Minimum and maximum amounts of money you can put in: You can start with 1,000 yen and increase it by 100 yen each time. The amount that can be invested is unlimited. Returns: As of April 1, 2024, the NSC offers a fixed interest rate that is currently set at 7.7% per year. Each year, the interest is added up. Account type: NSC can be purchased by a single adult (for themselves or a minor), a couple (with different payout options), or even a minor over the age of 10 for themselves or a minor. Benefits from taxes: Under Section 80C of the Income Tax Act, investments in NSC are eligible for a tax deduction of up to 1.5 lakh per financial year. Liquidity: The lock-in period makes NSC less liquid than other investment options. Top 5 Indian Post Office Schemes for Safe Investments The safe investment options provided by India’s post office savings programs are backed by assurance from the government and come with tax advantages. You can get the flexibility and attractive interest rates you need to reach your financial goals with the Post Office Savings Account, Monthly Income Scheme, Kisan Vikas Patra, Sukanya Samriddhi Yojana, and National Savings Certificate. The stability, security, and tax advantages of these schemes make them the best options for people who want to increase their wealth while reducing risk.
