Saving Schemes

SCHEME Interest Payable, Rates, Periodicity etc. Investment Limits and Denominations Salient features including Tax Rebate PostOffice Savings Account   3.5% per annum on individual/ joint accounts. Minimum INR 50/-. Maximum INR 1,00,000/- for an individual account. INR 2,00,000/- for joint account. Cheque facility available.  Interest Tax Free. 5-YearPost Office Recurring Deposit Account On maturity INR 10/- account fetches INR 728.90/-. Can be continued for another 5 years on year to year basis. Rate of interest 7.5% (quarterly compounded). Minimum INR 10/- per month or any amount in multiples of INR 5/-. No maximum limit. One withdrawal upto 50% of the balance allowed after one year. Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebate. PostOffice Time Deposit Account Interest payable annually but calculated quarterly. Period          Rate 1 yr. A/c      6.25% 2 yr. A/c      6.50% 3 yr. A/c      7.25% 5 yr. A/c      7.50% Minimum INR 200/- and in multiple thereof. No maximum limit. Account may be opened by individual. 2,3 & 5 year account can be closed after 1 year at discount. Account can also be closed after six months but before one year without interest. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007. PostOffice Monthly Income Account 8% per annum payable i.e. INR 80/- will be paid every month on a deposit of INR 12000/-. In multiples of INR 1500/- Maximum INR 4.5 lakhs in single account and INR 9 lakhs in joint account. Maturity period is 6 years. Can be prematurely encashed 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.) A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07. 15year Public Provident Fund Account 8% per annum (compounded yearly).   Minimum INR. 500/- Maximum INR. 70,000/- in a financial year. Deposits can be made in lumpsum or in 12 installments. Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rd Financial year. No attachment under court decree order. KisanVikas Patra Money doubles in 8 years & 7 months. Facility for premature encashment. Rate of interest 8.4% (compounded yearly) No limit on investment. Available in denominations of INR. 100/-, INR. 500/-, INR. 1000/-, INR. 5000/-, INR. 10,000/-, in all Post Offices and INR. 50,000/- in all Head Post Offices. A single holder type certificate may be issued to an adult for himself or on behalf of a minor or to a minor, can also be purchased jointly by two adults. National Savings Certificate (VIII issue) 8% Interest compounded six monthly but payable at maturity. INR. 100/- grows to INR 160.10 after 6 years.   Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-. A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. Deposits quality for tax rebate under Sec. 80C of IT Act. The interest accruing annually but deemed to be reinvested will also qualify for deduction under Section 80C of IT Act. Senior Citizens Savings Scheme 9% 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 31st March, 30th June, 30th Sept and 31st December. There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding rupees fifteen lakh. Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse.  Age should be 60 years or more, and 55 years or more but less than 60 years who has retired on superannuation or otherwise on the date of opening of account subject to the condition that the account is opened within one month of receipt of retirement benefits. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest. TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a.  The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.   Sec 80C benefit: Investments up to INR 1 lakh in specified securities (maximum of INR 70,000 in PPF) qualify for deduction ·         Compounded half-yearly ·         Compounded yearly ·         Compounded quarterly ·         Payable quarterly   CBS -Core Banking Project   India Post provides accessible and affordable service to   the people of India through its unparalleled network of post offices . Mails, Savings, Insurance and Parcel are the mainstay of post offices with several new services like Western Union money transfer, Electronic Money Order and distribution of mutual funds taken successfully in the last decade. Due to its   competitive advantage of geographical accessibility and its time tested accounting procedures, India post has also positioned itself as a reliable agency for the Government of India (GOI) in implementing its inclusive growth policies. Not only does the post office disburse MGNREGS wage and old age pension payments but also in the process has opened savings accounts to   a large number of financially excluded people. To improve its service quality and operational efficiency, India post has embarked on an IT modernization programme. One of the key components of this IT modernization programme is to introduce a centralised core banking solution with alternate delivery channels facilitating any time any where banking environment. This core banking environment will enable faster transfer of funds and easier withdrawals. The alternate delivery channels planned for service delivery are ATMs, Internet, Phone, SMS and Mobile Banking. This is an Eleventh Five Year Plan Project and envisages implementation of CBS in all departmental post offices during the plan period.   CBS Project Office Room No: 317, Dak Bhavan Postal Directorate, New Delhi – 110001 Email : cbs-po@indiapost.gov.in   Mutual Funds   On 24th September, 2009 in Mumbai, India Post was felicitated with UTI-CNBC special commendation award in the form of a trophy for effectively utilizing its network to promote financial inclusion in smaller places. Distribution of Mutual Funds and Securities:   The Post Office has traditionally been a distributor of financial services, from money orders to banking services. The Post Office Savings Bank is the largest retail bank in the country, operating from over 1,50,000 branches. With an objective to leverage the strength of the postal network and skills Department of Posts had started retailing mutual funds and bonds.    On 22nd January 2001, India Post in partnership with IDBI-Principal, launched a scheme for distribution of mutual funds through post offices. A pilot project was started from the four cities of Delhi, Mumbai, Kolkata and Patna. Thereafter from 15th June 2001 onwards, the scheme was extended to cover  post offices in all major capital and other cities all across the country. At present select  schemes of  Principal, SBI, UTI, Franklin Templeton and Reliance Mutual Fund are retailed through designated post offices in the country.  Easy steps for investing through the Post Office: 1.  At each designated post office one counter (AMFI qualified personnel) has been earmarked (usually on a non-exclusive basis) to receive the Mutual Fund applications; 2.  An investor can approach the designated post office counters or the concerned postmaster for application forms and literature on the types of fund schemes available through the post office; 3.  Thereafter he can hand the application forms duly filled along with requisite amount in the form of a demand draft/cheque to the counter staff. No cash will be accepted; 4.  The counters accept the application forms as per the cut off time prescribed by the AMCs for accepting the applications for their schemes in the particular post office. List of Post Offices distributing Mutual Funds and Bonds. Assistant Director General (Corporate Banking) Department of Posts, Room No. 322, Dak Bhawan, Parliament Street, New Delhi-110001. Phone No. 011-23096102, Fax No. 011-23096108 e-mail – indiapostmf@rediffmail.com   Electronic Clearance Service (ECS)   The ECS scheme provides an alternative method of effecting bulk payment transactions like periodic (monthly/ quarterly/ half-yearly/ yearly) payments of interest/ salary/ pension/ commission/ dividend/ refund by Banks/Companies /Corporations /Government Departments. The transactions under this scheme move from a single User source (i.e. Banks/Companies /Corporations /Government Departments) to a large number of Destination Account Holders (Customers/Investors). This scheme obviates the need for issuing and handling paper instruments and thereby facilitates improved customer service by the Banks and Companies/Corporations/Government Departments effecting bulk payments. The Scheme is in operation at 15 centres where Reserve Bank of India manages Clearing Houses, 21 centres where SBI is managing ECS on behalf of RBI and 29 other centres where PNB and other banks are managing ECS on behalf of RBI. The ECS is being offered in the Department of Posts in connection with payment of monthly interest under “Monthly Income Scheme” (MIS). The Department of Posts introduced ECS scheme on a pilot basis in Mumbai City on 9th August 2003. Under ECS, the depositors have the facility of getting MIS interest automatically transferred and credited into their SB account on the due dates at the designated Bank of their choice. Currently, the service is available in the Department of Posts at 15 RBI locations and 19 SBI locations as given below. In remaining 2 SBI locations viz. Raipur (Chhattisgarh) and Ranchi (Jharkhand) the ECS will be introduced shortly.   Locations where RBI is managing ECS: 1. Ahmedabad (Gujrat) 2. Bangalore (Karnataka) 3. Bhubaneswar (Orissa) 4.Kolkata(West Bengal) 5. Chandigarh (Punjab) 6. Chennai (TN) 7. Guwahati (Assam) 8. Hyderabad (AP) 9. Jaipur (Rajsthan) 10. Kanpur (UP) 11.Mumbai Maharashtra 12. Nagpur (Mahrashtra) 13. New Delhi 14. Patna (Bihar) 15. Thiruvananthapuram (Kerala)   Locations where SBI is managing ECS: 1. Shimla (HP) 2. Nashik (Maharashtra) 3. Panaji (Goa, Maharashtra) 4. Calicut (Kerala) 5. Thrissur (Kerala) 6. Jabalpur (MP) 7. Jodhpur (Rajasthan) 8. Pondicherry (TN) 9. Tiruchirapalli (TN) 10. Durgapur (West Bengal) 11. Hubli (Karnataka) 12. Dehradun (Uttranchal) 13. Siliguri (West Bengal) 14. Burdwan ( West Bengal) 15. Baroda (Gujrat) 16. Surat (Gujrat) 17. Sholapur (Maharashtra) 18. Gwalior (MP) 19. Tirupur (TN)   Contact the nearest Post Office. For more details Director Postal Services Mizoram : Aizawl-796001 Tel # 0389-2328024, 2322880 E mail = dps_aizawl@yahoo.co.in   The Postmaster Aizawl Head Post Office – 796 001 Tel # 0389-2328023 E mail = pmaizawl@rediffmail.com   The Dy. Postmaster (SB) Aizawl Head Post Office – 796 001 Tel  #  0389-2318536   The Postmaster Lunglei MDG – 796701 tel  #  0372-2324035 E mail = pmlungleimdg@rediffmail.com   The Public Relations Inspector (P) Aizawl Head Post Office – 796 001 Tel  #  0389-2301081