details about Post office savings

1. POST OFFICE SAVINGS

2. DEFINITION
 The post office savings account is the
deposit scheme offered by the
department of post on which fixed
interest is paid.
 Investors deposit a good portion of their
financial assets in a postal savings
account in order to earn a fixed rate of
interest on the investment.

3. TYPES OF SAVING SCHEMES
 Recurring deposits account (RD)
 Monthly income account(MIS)
 National savings certificates(NSC)
 Public provident fund(PPF)
 Kisan vikas patra(KVP )

4. SALIENT FEATURES OF POST OFFICE SAVINGS
 Rate of interest is 4% per annum compounded
quarterly and payable annually.
 Minimum amount for opening the account is Rs.20/-
 Interest earned is tax free upto Rs.10,000/- per year
from financial year 2012-2013.
 Accounts can be transferred from one post office to
another.
 The account can be opened by cash only.

5. BENEFITS
 Cheque facility
 ATM/Debit card
 Minor accounts
 Portability
 Nomination
 Joint holdings
 Tax exemptions
 Electronic facilities

6. TAX BENEFITS
Income tax relief against the interest earned
from the savings in these accounts is
available under the provisions of section 80L
of income tax act,1961.