Importance of post office investment schemes
Post office investment schemes have an important role in the investment chain of India. The popularity of post office investment schemes attain much popularity due its safety and profit. Post office investment schemes are most secure and it also provides rebate for income tax rates. Monthly income scheme, recurring deposit,time deposit,senior citizen savings scheme,public provident fund,national savings scheme etc are the important post office investment schemes. The increase in the interest of bank deposit is visible in theinterest of post office deposit also. The interest of many post office rates increased from 2011 December onwards. The interest of savings deposit increased from 3.5% to 4%. Some best post office investment schemes are as followes.
Monthly income scheme
Monthly income scheme is most suitable for those who are in search of a secure deposit with a fixed income. The term of the scheme is five years. The interest rate of monthly income scheme is 8.2%.The lowest investment amount is 1500 rupees. The highest investment amount for an individual is 4,50,000 rupees. The highest investment for joint account is 9 lakh rupees.
Every Indian citizen can join in this scheme. The investor can deposit whatever money as multiples of 10 in this scheme. Eventhough the term of the scheme is 5 years the depositor can withdraw the amount after three years even if necessory. The interest of savings account will get in such situations. Anglo Indians and minor children cannot open the account. Though the minor children can open the joint account with parents. The interest of savings account according to that time will be get in recurring deposit. At present it is 4%.
Time deposit will be get according to certain time such as one year scheme,two year scheme,three year scheme and five year scheme.
Account can be start individually as well as jointly with two persons. Group accounts are not allowded in this scheme. The interest rate of one year scheme is 7.7%. The interest of two year scheme and three year scheme are 7.8% and 8% respectively. The interest of five year scheme is 8.3%. Compound interest will add once in a month with the amount. The merits of income tax section 80 C will get in this scheme.
The minimum investment amount is 200 rupees. There is no limitation over higher amount in time deposit.
Senior citizen savings scheme
Senior citizen savings scheme one of the post office investment schemes which gives higher interest. The merits of this scheme will get only those who have completed 60 years.Though those 55 aged persons who have retired through voluntary retirement scheme and those who have retired from defence service also can join in senior citizen scheme.The term of the plan is 5 years. Facility to extend the scheme for three years again is avaliable in this scheme. The highest investment amount is 15 lakhs. The interest rate is 9%.1 1/2 % interest may decrease if the deposit will stops within maturity. The merits of section 80c is avaliable in this scheme.
Public provident fund
Public provident fund is one of the popular investment scheme. The investor can deposit up to 1 lakh rupees in 15 year scheme at present. The interest increased from 8% to 8.6% from 1/12/2011 onwards. The higher investment amount will increases from 70,000 rupees to 1,00,000 rupees. Public provident fund is most appropriate to maximum profit within a long term. Loan facility avaliable from third year to
fifth year. The amount can withdraw from sixth year onwards.The interest of the loan is increased from 1/12/2011. The deposit in public provident fund is free from debt and court attachment.
National savings scheme
National saving scheme is a popular scheme as provident scheme.The term of the scheme is reformed as 5 years and a 10 year scheme is introduced from 1.12.2011 onwards. The certificates of 100, 500, 1000, 5000, 10000 rupees will get in this scheme. The deposit of 100 rupees will increase as 150.90 with 5 years. The merits of income tax section 80c will avaliable for deposit and interest. Though the rebates of income tax will not get for the final year interest.
I am a NRI and OCI holder and senior citizen. I want to take advantage of this 5 year fix deposit scheme. Am I eligible for that or not? I have no intention to transfer money now and near future from India. Also suggest me some scheme.