Indian Post Small Saving Scheme For those investing in small savings schemes, the post office’s small savings scheme can prove to be one of the best options. With this, you will not only get the benefit of better interest rate but will also get the benefit of tax exemption.
If you want to invest in small savings schemes, then the nine Small Savings Schemes offered by the post office can prove to be a much better option for you. One of these savings schemes is the National Savings Time Deposit Account (TD) ie, the Post Office Fixed Deposit Account Scheme. If you invest in this post office scheme, not only will you get the benefit of better interest rate, but you will also get the benefit of tax exemption. Let us know the complete details of this scheme.
Who can open account
Under this scheme of post office, any Indian adult can open his account. Apart from this, the guardian of the minor can open the account on behalf of the person. Any number of accounts can be opened under this scheme.
Deposit
Under this, the account can be opened with a minimum amount of Rs 1000 and after that Rs 100. However, there is no maximum limit for investment under this.
How much interest
If you open your account under this post office scheme for 1 year, then you get the benefit of 5.5 percent interest rate on it. At the same time, this interest rate is 5.5 percent on 2 and 3 year accounts also. At the same time, the benefit of 6.7 percent interest rate is available on the 5-year account. Under this, annual interest will be payable on quarterly basis. Apart from this, withdrawals cannot be made till the completion of 6 months from the date of deposit. The term account can be closed prematurely by submitting the prescribed application form along with the pass book at the concerned post office. If the fixed account is closed before the completion of 1 year and after 6 months then the post office savings account interest rate will be applicable.
