There are provisions for any individual to open an account in Post offices. The cheque facility is also available in these cases. The account can be either single account or joint account but there are no facilities to create a group account, institutional account or any other accounts like Security deposit account. The maximum limit for a single account is 1 lakh and that of joint account it is 2 lakhs. The Rate of interest is 3.5% per annum.
Monthly Income Scheme (MIS)
Monthly Income scheme is a secure way of getting a regular monthly income. This scheme is best suited for those employees who are retired or the senior citizens. The rate of interest is 8% with a maturity period of 6 years. There is also the auto credit facility to SB account. The minimum and maximum limits for single account is Rs.1500 and 4.5 lakhs respectively and that for joint account it is Rs 1500 and 9 lakhs.
Any person is allowed to open an account. Any deposits made in advance obtains rebate and a total of four defaults are permissible. These defaults can be paid within two months. The account can be closed prematurely after three years also. There is also facility for part withdrawal. For an individual account, the minimum deposit is Rs 10 and then in multiples of 5 thereafter. There is no maximum limit for this.
Time Deposit (TD)
Any person is allowed to open an account. There are no facilities to create a group account, institutional account and misc accounts. Funds such as regimental funds, welfare funds, trusts etc are not allowed to invest. There are options to open 1 Year, 2 Year, 3 Year and 5 Year time deposits. The investments made under this scheme are subjected to benefit of Income tax. For 1,2,3 and 5 year time deposits, the minimum deposit is Rs 200 and then in multiples of 200 thereafter. There is no maximum limit for this.
Senior Citizens Savings Scheme (SCSS)
This type of account can be opened by three categories of people. They are those who attains 60 years of age or above, who is 55 years or more but less than 60 years and has taken voluntary retirement is allowed to open an account and no age limit for those who have retired from defence services. The account can be single account or joint account. There is no provision for the Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) to open this account.
The individual can open more than one account in multiples of Rs.1000/-, and extend up to a maximum limit of Rs.15 lakhs. This money cannot be withdrawn before 5 years from the date of account opening. Premature closing of the account is allowed. Nomination facility is available for this scheme. The investments made under this scheme are subjected to benefit of Income tax
15 Years Public Provident Fund
This type of investment scheme is best suited for both salaried and self-employed people. Non Resident Indians and Hindu Undivided Family (HUF) are not allowed to use this scheme. Withdrawal can be made from the 6th year and the loan facilities are available from the 3rd year. For an individual account, the minimum deposit is Rs 500 and the maximum limit is Rs 70,000
Kissan Vikas Patra
In this scheme, the investment doubles in 8 years 7 months. The expiry period is 2 ½ Years and the encashment can be done after this time. Non Resident Indians and Hindu Undivided Family (HUF) are not allowed to use this scheme. Nomination facility is available.
National Savings Certificates (NSC)
This scheme is made especially for the Government employees, Businessmen and other salaried classes who are IT assesses. This certificate is beneficial as it can be kept as a security for getting any loans from banks. There is no maximum limit for the investment. Trusts and Hindu Undivided Family (HUF) cannot invest in this scheme.
Electronic Fund Transfer
Electronic Fund Transfers (EFT) is the transfer of funds from any location, through electronic messaging systems. EFT has increased speed and reliability of transfers. This system enables better information processing and the customers are provided with a certainty of when the payments will be made with reduced transition fee for the transfer of funds.
Corporate Money Order
This service enables transfer of large amounts of cash across the country in less time. This is beneficial for institutions, companies etc. where periodic transfer of money to various units takes place. It is linked with 100 centers in the country. The members are to deposit the money either through pay order or cheque and the payment will be made at the destination by cheque.
A money order is an order to pay money to any person who is addresses. It is issued by the Post Office and the amount to be paid to the person along with his address is mentioned and sent through the agency of the Post Office. A ‘Payee’ is the person to whom the money is to be paid and his name is written on the money order. The main advantage of this way of sending money is that the money is sent to the payee’s home.