Diwali 2020 Post Office Investment Schemes: Tomorrow is the festival of Diwali. Diwali brings new happiness in a person’s life. This day is also considered auspicious for new beginnings and investments. In such a situation, you can invest in the savings schemes of the post office. Post office savings schemes provide safe and good returns. 100% of the entire money invested in post office schemes is guaranteed to be safe. Post office (TD) accounts can be opened from the post office to RD, PPF, NSC. Let us know about these savings schemes of the post office.
5 Year Recurring Deposit (RD)
RD opens at post office minimum installation of Rs 100 per month. Its maturity period is 5 years. The current interest rate on post office RD is 5.8 per cent per annum. In the account single or joint, the names of minor and mentally weak persons above 10 years of age can be opened. If it is opened before the 15th of the month, then your monthly installment should be deposited in it before the 15th of every month.
On the other hand, if it is opened after the 15th, then it must be deposited by the last date of the month. If the monthly deposit is not deposited by the due date, the post office charges you a default fee of Rs 1 per 100 rupees for every default. The RD account is suspended after 4 consecutive defaults. However, it can be revived within 2 months. But if it is not revived during this period, then there will be no deposit in it. After failing to make a monthly deposit, you must first pay the previous outstanding deposit and fees, then your existing monthly deposit will be approved.
Post office RD can be prematurely closed after 3 years. Nomination on post office RD, facility to transfer account from one post office to another, facility to open multiple RD in one post office, facility of online deposit from intra operable net banking / mobile banking, online deposit from India post payments bank saving account Facility, facility to extend the account after the maturity period ends and for 5 years is available. Loans can also be availed at Post Office RD. After 1 year of opening an account, you can take a loan of up to 50 percent of your existing balance.
Post Office Time Deposit (TD)
TDs can be opened from 1 year to 5 years in the post office. Account can be opened for minimum 1000 rupees, there is no maximum limit. The current interest rate on post office TD ranges from 5.5 per cent to 6.7 per cent annually. TD can be done in single or joint, in the name of a minor or mentally weak person over 10 years of age.
Premature encashment cannot be done before completion of 6 months after post office TD. From 6 months onwards till the completion of 12 months of the account, if the TD is closed, then the interest rate of the Post Office Savings Account will be applicable, not the TD. Investment in post office TD of 5 years is exempt from tax under section 80C of Income Tax Act.
Nomination facility on post office TD, facility to transfer accounts from one post office to another, facility to open multiple TDs in the same post office, facility to convert single account to join or join account to single, account extension Facility, online account opening facility is available through intra operable netbanking / mobile banking.
Public Provident Fund (PPF)
Post office PPF account can be started from minimum 500 rupees. The current annual interest rate on the account is 7.1 percent. It is necessary to deposit minimum 500 rupees and maximum 1.5 lakh rupees in an account in a financial year. If the minimum annual amount is not deposited in the account, then the account becomes inactive and then activates again only after filling the previous balance, a charge of Rs 50 and an install. Also, if you want to take advantage of the entire interest of the month, then deposit it in PPF by the 5th of every month. Nomination facility at post office PPF, facility to open another PPF account in the name of Minor is available.
The post office PPF has a maturity period of 15 years and cannot be closed earlier. However, in select cases, it can be closed if required after completion of 5 years. These matters are as follows-
- Account holder, his spouse or dependent children with a fatal illness
- PPF account holder or dependent children for higher education
- On account abroad of account holder.
Investment in post office PPF, interest on it and the amount received on maturity, all three are exempt from tax under the Income Tax Act. Post office PPF account can be extended in block of 5 years after completion of maturity period. For this, application has to be given within one year from the maturity date. On account extension, it can be continued with or without new deposit. Interest will continue to accrue on the existing balance.
After the completion of one year of the post office PPF account and before the completion of 5 years, it can be taken a loan. Apart from this, it can also be withdrawn after the completion of 5 years of the account. Online deposit facility through intra operable netbanking / mobile banking at Post Office PPF, online deposit facility available from India Post Payments Bank Savings Account.
National Savings Certificate (NSC)
The maturity period of NSC is 5 years. The current annual interest rate on this is 6.8 percent. Investment in NSC can be started from minimum 1000 rupees. There is no maximum investment limit. Investments can be made in the NSC in single or joint, in the name of a minor and mentally weak person over 10 years of age. Investments in this are tax rebate under Section 80C of Income Tax Act. NSCs can be transferred from one person to another once between the maturity date of issue.
Post Office Monthly Income Scheme Account (MIS)
The maturity period of MIS is 5 years. The current interest rate on this is 6.6 percent per annum, which is paid every month. An account can be opened in post office MIS with a minimum of 1000 rupees. The maximum investment limit is Rs 4.5 lakh for a single account and Rs 9 lakh for a joint account. Accounts can also be opened in the name of a minor and mentally weak person over 10 years of age. If the post office wants to prematurely close the MIS, this will be done only after the completion of 1 year.
Before the completion of 3 years of account, the premature will deduct 2% of the post office deposit on the encashment. At the same time, after completion of 3 years, 1% of the deposit is deducted on premature encashment. Nomination facility at post office MIS, facility to transfer account from one post office to another, facility to open multiple accounts in same post office, facility to convert single account to join and join account to single.