Below are the various schemes by Government for benefit of Public, for more details official Government website can be referred, this article is only to create awareness and share basic information about these schemes.

POST OFFICE SAVING ACCOUNT:

Saving account for petty saving and receiving transactions.

  • A person may open the account in his own name individually or jointly with an adult person.
  • A person may open the account on behalf of minor of whom he is the guardian or a person of unsound mind
  • A minor who has attained the age of 10 year may open the account independently.
  • Zero balance account for beneficiaries of MNREGA and otherGovt. Schemes.
  • Current Rate of Interest Payable.
  • Interest earned up to Rs. 10,000 in a financial year qualify for deduction from Income under section 80TTA of Income Tax Act.

National Savings Time Deposit Account:

Time Deposit Accounts are short as well as long-term deposits with rate of interest compounded quarterly but paid annually.

  • Rate of interest is notified by the government from time to time on quarterly basis and Current Rate of Interest Payable.
  • A guardian may open an account on behalf of a minor or a person of unsound mind.
  • An Account can be opened in multiples of INR 100/- without any maximum limit.
  • An account can be closed any time after opening of the account. In this case simply interest at Post Office Saving Account rate shall be payable.
  • Deposits in 5 year Time Deposit qualify for deduction u/s 80-C of Income Tax Act.
  • Two, three and five year Time Deposit account can be closed prematurely with deduction in the rate of interest.

National Savings Recurring Deposit Scheme:

National Savings Recurring Deposit Scheme helps the small investors to form a capital to meet the future needs.

  • An account can be opened by an adult in his own name or by two adults jointly.
  • Guardian may open an account on behalf of a minor or a person of unsound mind.
  • An account with minimum Rs. 10/- and any amounts in multiples of Rs. 5/- can be opened.
  • There is no maximum limit.
  • Rate of interest is notified by the government from time to time on quarterly basis and Current Rate of Interest Payable and maturity value.
  • Advance deposits can be made at the option of the depositor for 6 months or 12 months and earn rebate.
  • Withdrawal to the extent 50% of the amount of existing balance is permissible after one year of the opening of account.
  • Maturity value allowed on RD accounts restricted to that of ` 50/- denomination in case of death of depositor subject to fulfillment of certain conditions.
  • An account can be continued with deposits or without deposits after maturity for another five years. Account can be closed prematurely after 3 years with simple interest at the rate of Post Office Saving Account.

National Savings Monthly Income Scheme:

National Savings Monthly Income Scheme is an ideal scheme for retiring persons and also those who want steady flow of regular income.

  • Maturity period of the scheme is 5 years.
  • Amount can be deposited in multiples of ` 100/- subject to a maximum limit of ` 4.5 lakh in single account and ` 9 lakh in joint account.
  • A depositor may operate more than one account under this scheme subject to the ceiling of maximum amount, which may be invested in single, or joint account.
  • A guardian may also open an account on behalf of a minor or a person of an unsound mind.
  • Rate of interest is notified by the government from time to time on quarterly basis and payable on monthly basis.
  • Current Rate of Interest Payable .
  • Account can be closed prematurely after one year but before the expiry of three years on deduction of 2% of the deposit. In case the account is closed after expiry of three years, 1% of the deposit shall be deducted.

National Savings Certificate-VIII Issue:

National Savings Certificates VIII Issue is an excellent scheme wherein not only initial deposit but also the accrued interest for first 4 years enjoys the benefit of section 80-C of I.T. Act.

  • Min. ` 100/- and no max. limit.
  • Certificate shall be issued on Passbook or exclusive e-mode.
  • A single holder type certificate can be purchased by an adult for himself or on behalf of a minor.
  • Joint ‘A’ Type certificate may be issued to two adults payable to both the holders jointly or to the survivor.
  • Joint ‘B’ Type certificate may be issued to two adults payable to either of the survivor.
  • Rate of interest is notified by the government from time to time on quarterly basis and is calculated on half yearly compounded basis.
  • Current Rate of Interest Payable and maturity value.
  • Loan facility available by pledging with the banks.
  • The deposits as well as interest accruing annually but deemed to have been reinvested qualify for deduction u/s 80-C of I.T. Act.
  • Interest accrual on investment of `100/- and in proportion for other denominations, on yearly basis for income tax purpose.

Senior Citizen Saving Scheme:

An ideal scheme for senior citizens and for those who have retired either from service, to provide security in old age.

  • An individual who has attained the age of 60 year or above on the date of opening of an account or an individual who has attained the age of 55 years or more but less than 60 years and has retired under superannuation or otherwise.
  • A retired Personnel of Defense Services (Excluding Civilian Defense Employees), who has attained the age of 50 years can also subscribe to the scheme subject to fulfillment of other specified conditions.
  • A depositor may open an account individually or jointly with spouse.
  • The deposit in the account shall be in the multiples of 1000/- and not exceeding Rs. 15 lakh.
  • Interest shall be payable from the date of deposit to 31st march/ 30th June/ 30th September/ 31st December on 1st working day of April/July/October/January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/July/October/January on quarterly basis.
  • Current Rate of Interest Payable.
  • The account can be closed after expiry of 5 year from the date of opening of account.
  • The depositor may extend the account for further period of 3 years.
  • Premature closure is permissible after expiry of one year from the date of opening account subject to certain conditions.
  • Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.

PUBLIC PROVIDENT FUND SCHEME:

A milestone ahead over other schemes in the market. PPF is not a tax savings scheme but a sound investment.

  • A subscriber can deposit any amount between Rs.500/-(minimum) and Rs. 1,50,000/-(maximum) in a financial year.
  • Current Rate of Interest Payable.
  • Loan facility is available from 3rd financial year up to 6th financial year.
  • One withdrawal is permissible every year from 7th financial year.
  • Account matures on completion of fifteen complete financial years from the end of the year in which the account was opened.
  • After maturity, account can be extended for any number of a block of 5 years with further deposits.
  • Account can be retained indefinitely without further deposits after maturity with the prevailing rate of interest.
  • Deposit may be PPF account qualified for deduction under Sec- 80 C of Income Tax Act.
  • Interest earned in PPF account is completely exempted from Income Tax under Sec-10(15 of Income tax Act).
  • The amount in the PPF account is not subject to attachment under any order or decree of a court of law.

Kisan Vikas Patra:

Double your Money in —— months

  • Amount invested in 112 months
  • Minimum deposit Rs. 1000 and no maximum limit.
  • Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.
  • Certificate can be purchased from any Post Office or authorized bank.
  • Facility of nomination is available.
  • Certificate can be transferred from one person to another and from one account office to another.
  • Certificate can be encashed after Two and Half fears from the date of issue of certificate.
  • Current rate of interest payable.

Special Feature:-

  • National Saving Schemes enjoys sovereign guarantee
  • Nomination facility is available in all the schemes.
  • Account/ Certificates can be transferred from one place to another in the country.

Sukanya Samriddhi Account Scheme:

  • Account can be opened in the name of a girl child till she attains the age of 10 years.
  • Only one account can be opened in the name of a girl child.
  • Account can be opened in Post office and branches of authorised banks.
  • Birth certificate of girl child in whose name the account is opened must be submitted.
  • Account can be opened with a minimum of Rs. 250/- and thereafter any amount in multiple of Rs. 100/- can be deposited. A minimum of Rs. 250/- must be deposited in a Financial year.
  • Maximum Rs. 1,50,000/- can be deposited in a financial year.
  • Interest @ as may be notified by the government from time to time will be calculated on yearly compounded basis and credited to the account.
  • One withdrawal shall be allowed on attaining the age of 18 years of account holder to meet education expenses upto 50 % of the balance at the credit of preceding financial year.
  • The account can be transferred anywhere in India from one post office/bank to another.
  • The account shall mature on completion of 21 years from the date of opening of account or on the marriage of Account holder whichever is earlier.

You can visite Government Website for schemes here.

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Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

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