POST OFFICE  PRODUCTS AS INVESTMENT TOOL :

SAVINGS ACCOUNT : Individual Account or Joint Account can be opened.

Features: 

• Can be opened only by Cash.
• Minimum Balance : Rs.50.00 for ordinary account and Rs.500.00 for cheque facility.
• Nomination is available.
• Age 10 years and above can operate  own account.
• At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.
• Inter Post office transactions can be done between CBS post offices.
• ATM/Debit Cards can be issued to Savings Account holders( having prescribed minimum balance on the day of issue of card) of CBS Post offices.
• One account can be opened in one post office.
• Account can be transferred from one post office to another. 10.Rate of Interest : 4% p.a.

RECURRING DEPOSIT : Cash/Cheque is allowed to open recurring deposit account.

Features:

• Minimum 5 years , after that another 5 years can be extended yearly basis.
• Nomination is available.
• Account can be transferred from one post office to another.
• Any number of account can be opened in any post office.
• Joint account can be opened only by two individuals.
• A default fee is charged for each default, default fee @ 5 paisa for every 5 rupee shall be charged. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made.
• There is rebate on advance deposit of at least 6 installments.
• One withdrawal upto 50% of the balance allowed after one year.
• In case of deposits made in RD accounts by Cheque, date of credit of Cheque into Government accounts shall be treated as date of deposit.
• Rate Interest : 8.4% p.a.( quarterly compounded ).

TERM DEPOSIT : Any individual(single) or two individual(jointly) can open account.

Features:

• Account can be opened by cash/cheque and in case of cheque the date of realization of cheque in Govt. account shall be date of opening of account.
• Nomination facility is available.
• Account can be transferred from one post office to another.
• Any number of accounts can be opened in any post office.
• 10 years and above age can open and operate the account.
• If any TD accounts is closed before one Year, interest @ savings account applicable from time to time shall be payable.
• The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
• Interest  Rate 1yr.A/c -8.40%, 2yr.A/c 8.40%, 3yr.A/c 8.40%, 5yr.A/c 8.50%.

MONTHLY INCOME SCHEME : Account may be opened by individual or jointly for maximum three people.

Features:

• Nomination is available.
• Account can be opened by cash/cheque and in case of cheque the date of realization of cheque in Govt. account shall be date of opening of account.
• Account can be transferred from one post office to another.
• Maximum investment limit is INR 4.5 lakhs in single account and INR 9 lakhs in joint account.
• Interest rate is 8.40% per annum payable monthly.)(All joint account holders have equal share in each joint account.
• Maturity period is 5 years from 1.12.2011.
• Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or ECS./In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices.
• Can be prematurely en-cashed 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.
• Discount means deduction from the deposit.

NATIONAL SAVINGS CERTIFICATES( NSC ) : A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor.

Features:

• Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
• Certificate available for 5 years(VIII Issue) & 10 years(IX Issue).
• Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
• Interest rate for 5 years, 8.5% compounded six monthly but payable at maturity. INR. 100/- grows to INR 151.62 after 5 years.)(Interest rate for 10 years, 8.80% compounded six monthly but payable at maturity. INR 100/- grows to INR 236.60 after 10 years.
• In case of NSC VIII and IX issue, transfer of certificates from one person to another can be done only once from date of issue to date of maturity.
• At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of old holder shall be rounded and name of new holder shall be written on the old certificate and on the purchase application(in case of non CBS Post offices) under dated signatures of the authorized Postmaster along with his designation stamp and date stamp of Post office.

SENIOR CITIZEN SAVINGS SCHEME : An individual of the Age of 60 years or more may open the account.

Features:

• An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.
• There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh.
• Maturity period is 5 years.
• 9.20% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 1st working day of April, July, October, & January.
• A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).
• Account can be opened by cash for the amount below INR 1 lakh and for INR 1 Lakh and above by cheque only.
• Nomination facility is available.
• Joint account can be opened with spouse only and first depositor in Joint account is the investor.
• Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or Money Order.
• Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest (Discount means deduction from the deposit.).
• After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction.
• TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a.
• Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961.)(Account can be transferred from one post office to another.

:Source : India Post website.