2. DEPARTMENT OF POST IN INDIA
Beginning of postal services - 1837
Setting up of the postal department - 1854
Beginning of the railway post services – 1907
Beginning of the airmail services 1911
Beginning of the quick mail services -1986
3. Post Offices offer various types of
accounts
Recurring Deposit Account [RD]
Monthly Income Account [MIS]
Post Offices also offer various saving and tax
saving instruments such as:
National Savings Certificate[NSC]
Public Provident Fund[PPF]
Kisan Vikas Patra[KVP]
4. Post office offers customers the facility of a 5-
Year Recurring Deposit (RD) Account
.customers earns interest over a fixed period of
time. An RD is usually opened for a fixed period
of time.
Recurring Deposit Account is an ideal
investment option for first time investors or
young professionals as it does not require
customers to invest large sums of money
towards instalments but does earn you
handsome interest at the end of the maturity
period.
5. Features of recurring
deposited scheme:
Facility of nomination is available.
Transfer of account from one post office
to another.
A person open several accounts.
Two adult open a joint account.
In case installment not deposited in fixed
time period, default fee is realized.
6. Encourage people to inculcate regular
saving habit .
Post office available at all place.
Government can invest the amount
obtained from this scheme .
7. MIS is meant for those investors who
want to invest a lump sum and earn
interest on monthly basis for their
livelihood. The scheme is, therefore, a
boon for retired persons.
8. Amount to be invested
Minimum limit single account :6000
joint account :6000
Maximum limit single account :450000
joint account :900000
Maturity Period of MIS account is 5 year.
Rate of interest 8.40% per annum is payable monthly.
In addition, bonus equal to 5% of the deposited amount
is payable at the time of repayment on maturity.
Position of minor
The account can be opened by a single adult or 2-3
adults jointly.
Transfer facility: Transfer of account from one post
office to another.
9. Retired person does not
feel the absence of the
payment of salary.
Government gives the
guarantee that this investment
is completely secure.
10. National Saving Certificate (NSC) is
one of the most popular post office
tax saving scheme. It gives you a
fixed amount after 5 years. This
scheme gives you tax benefit under
section 80C of the income tax act in
this post.
11. National Savings Certificate can be purchased by the
following:
An adult in his own name or on behalf of a minor
A minor
A trust
Two adults jointly
Hindu Undivided Family
Investment amount in NSC: Available in the
denominations of Rs 500, Rs. 1000, Rs. 5000, & Rs.
10,000. There is no maximum limit on the purchase of
the certificates.
12. Availability : NSC available in all the authorized
post office and head post office In the whole
country.
Rate of interest charge 8.50%.per annum .
Nomination facility: The nomination facility on
NSc is available on account of the availability of
this facility the nominee becomes the holder of
NSc when the original holder is no more alive.
Use as security: the facility of loan is available on
NSC. Can be obtain from bank by keeping them as
security.
Premature payment :maturity period of NSc five
year .generally payment cant got before
completion of period.
13. Tax benefit: is available on the investment made in
NSC.
Zero risk benefit: the guarantee of the government of
India available on this investment, this investment is risk
free.
Sufficient income benefit :income of this investment is
much more than the income to be obtained on the other
investment of this category.
Tax benefit: under the section 80C of the income
14. Transferability facility: from one person
name to another person is available
.similarly they can be transfer from one
post office to another.
Reinvestment facility :earned interest in
one year investment for following year.
tax benefit is obtained up to the first four
year. because end of maturity is
5year,reinvestment of interest earned
during the year not possible.
15. Public Provident is a savings cum tax
saving instrument. It also serves as a
retirement planning tool for many of
those who do not have any structured
pension plan covering them.
16. Eligibility :PPF account can open by every body via,
salaried the self employed and other. Except HUF
and NRI.
Minimum and maximum limit : Minimum 1000 and
maximum 100000 rupee can be deposit in one year
Rate of interest earned on the PPF is 8.70%.
Joint account: PPF account cannot be opened in
joint name.
Nomination facility can be added to PPF account
at the time of open it.
17. Pre-mature withdrawal not allow. but in
case of emergency the facility of withdrawal
upto the limit is available this facility
available from 7year withdrawals 50% of the
balance at the end of four year or
50%balance at the end of the immediate
preceding year, whichever is less.
The minimum tenure of PPF is 15 year
after completed there is provision of
extension of tenure for a back of 5year for
unlimited time. the contribution is illegal.
18. Double tax benefit Income Tax rebate is available
"on the deposits made", under Section 80c of
Income Tax Act. Secondly Interest earn this
account is tax-free.
Loan facility also available from the post office.
this facility available from third to fifth year.
The rate of interest obtain from this loan is 2% or
more than rate available on the PPF account
19. Amount invested in KVP doubles on
maturity after 8 years & 7 months
The main objective of the scheme is to
help the farmer.
01.12.2011 kvs has been discontinued
Kisan does not imply that only farmer can
invest in kvp but it implies the government
will be spend the collected money through
this scheme for welfare of farmer.
.
20. Eligibility
An adult in his own name, or on behalf of a minor,
A minor,
A Trust,
Two adults jointly
Deposit limit
KVP are available in the denominations of Rs 100, Rs 500,
Rs 1000, Rs 5000, Rs. 10,000 & Rs. 50,000. There is no
maximum limit on purchase of KVPs.
Premature encashment of the certificate is not permissible
except at a discount in the case of death of the holder(s),
forfeiture by a pledge and when ordered by a court of law.
No income tax benefit is available under the Kisan Vikas
Patra scheme.
Nomination facility on the investment in kvp available.
21. Development of agriculture kvp used by the
government for providing facilities to the farmer
for agriculture development of agriculture.
Safe investment KVP issued by government,
amount invested by them fully safe.
Encourage saving income from this investment
is quite enough therefore people get attached
toward this scheme .
