Post office Schemes in India and How to Apply

Post Office Schemes in India

The post office is an organization of the British era. It was first established in Oct 1854. Initially, it focused only on delivering mail or posting letters but by the time it started providing a wide range of other financial services such as Banking, Insurance & Investments.

To make these services available to more and more people, the government has launched various post office saving schemes. This means that the post office savings schemes are an excellent option for those who are looking to save tax money.

The schemes are tax-exempt under Section 80C, i.e. tax exemption up to Rs. 1,50,000 is allowed. For instance, the Post office youth Savings scheme, Post office gold bond scheme, Post office national saving scheme and Post office regular savings scheme are some of the best schemes that offer tax-free returns.

• The Post office gold bond scheme is one of the most popular schemes as it offers a fixed interest rate of 8.5% per annum on the first year’s principal amount.
• The Post office’s national saving scheme offers tax-free returns, but the interest rate is lower at 7% per annum.
• The Post office youth saving scheme is tax-free, but the interest rate is lower at 6% per annum Below is a list of such schemes with how to apply for them:

1. Post Office Savings Account

It is like any normal savings account of a bank and the account is transferable from one post office to another.

Eligibility criteria:

• One must be a citizen of India.

• He/She must be above the age of 10 years.

• For minors, guardians should open a savings account, in their name.

• When the minors reach the age of 18 years, they must transfer the account to their name.

• One can have only one single and one joint account at a particular post office.

How to Apply for the Scheme?

• Download the application form from the official portal of the Indian Post Office and KYC form.

• Fill the forms and submit these forms along with the PAN Card and Aadhaar Card/ Passport/ Driving License/ Voter’s Card/ NREGA job card/ letter issued by National Population Register. 

• Along with those also deposit 500 at a Post Office near you. 

• Within 2 business days, your savings account will be opened.

2. National Savings Recurring Deposit Account scheme

1. The Scheme is made for the small investors to meet their future needs.
2. The scheme offers a monthly investment for a fixed period of 5 years with an interest rate of 5.8% per annum which is compounded quarterly.
3. A Person can invest as little as Rs.100.
4. There is no upper limit for the investment.
5. Joint accounts can also be opened. Your account under this scheme can also be transferred from one post office to another.
6. In case you miss any monthly investment, 1 rupee for every 100 rupees will be charged.
7. The scheme offers flexibility by allowing a partial withdrawal up to 50% of the balance after a year.

Eligibility criteria:

• You must be an Indian national.

• You must be above 18 years.

• In case of a minor, he/she has to be 10+ years old.

• For minor accounts, the account has to be operated jointly with the guardian.

How to Apply for the Scheme?

•  Vist the nearest post office branch. 

• Ask for the form to open a Recurring Deposit account from the post office.

• Fill in the form and submit it along with the KYC details. You will also have to give other documents like PAN Card and Aadhaar Card.

• Finish the process by depositing the amount of the scheme, 100 is minimum.

3. National Savings Time Deposit Account

The Scheme was launched by the government of India on 12 December 2019. Under this scheme, the accounts come in four maturities. Interest rate offered under the scheme is higher than regular savings accounts.

Eligibility criteria:

• Account holder must be an Indian.

• Minors above 10 years of age can open the account, but jointly with their parents.

• One can open only one individual account and one joint account at a time.

• A minimum deposit of 1000 is needed and that amount will be maintained in the account.

• The accounts under this scheme are transferable.

How to Apply for the Scheme?

• Vist the nearest post office branch. 

• Ask for the form to open a National Savings Time Deposit Account from the post office.

• Submit the required documents like PAN Card and Aadhaar Card, along with the form.

• Finish the process by depositing the amount of the scheme that is 1000 and choose the time for which you want the deposit, four time periods are available under the scheme, 1 year, 2 years, 3 years and 5 years.

4. National Savings Monthly Income Account

The Scheme was launched mainly for retired people who earn at least 4.5 lakh per year. The accounts under the National Savings Monthly Income Scheme provide a fixed rate of interest, regardless of the market scenario. For instance, the current interest rate is 6.6% per annum.

Eligibility criteria:

• The account holder must have Indian citizenship.

• Minors above 10 years of age can operate under guidance of legal guardian.

• Individuals can operate the account with a limit of Rs 4.5 lakh. 

• A joint account with a maximum of three adults, can be operated with a limit of Rs 9 lakh. 

• One may open more than one account, but the limit will be 4.5 lakh spread across all the accounts. 

• The period of the accounts under this scheme is only five years.

• One can deposit as low as Rs 100.

• The closure of accounts before 5 years is permitted but with penalty.

How to Apply for the Scheme?

•  Vist the nearest post office branch. 

• Ask for the form to open a National Savings Monthly Income account from the post office.

• Fill in the form and submit it along with the KYC details. You will also have to give other documents like PAN Card and Aadhaar Card.

• Finish the process by depositing the amount of the scheme, 100 is minimum.

5. Senior Citizen Savings Scheme Account

1. The Scheme was launched by the Government of India senior citizens.
2. The scheme is the safest for the old people.
3. The interest rate is also higher, which is 7.4 percent per annum.
4. There are quarterly interest payouts. The person can also save tax upto 1.5 lakh per year.
5. Senior Citizen Savings Scheme Account deposit matures after 5 years from the date of account opening.
6. But can be extended by an additional 3 years only once.

Eligibility criteria:

• Only Indian citizens are to be allowed for applying to this scheme.

• Individuals must be above the age of 60 years.

• Individuals between 55 and 60 years who have opted for Voluntary Retirement Scheme (VRS).

• Retired defence personnel between 50 years and 60 years of age.

• 1000 is the minimum deposit and 15 lakh or amount received on retirement is the maximum deposit.

How to Apply for the Scheme?

• Vist the nearest post office branch. 

• Ask for the form to open a Senior Citizen Savings Scheme Account from the post office.

• Fill in the account opening form and submit it along with copies of KYC documents including proof of identity, address and proof of age and two recent passport size photographs.

• Finish the process by depositing the amount of the scheme, 1000 is minimum. 

6. Sukanya Samriddhi Account Scheme

The scheme helps parents to save for the further education and marriage expenses of the female child.

Eligibility criteria:

• The girl child must be an Indian.

• The girl child must not be more than 10 years of age.

• Legal guardian can open the account.

How to Apply for the scheme?

• Vist the nearest post office branch.

• Ask for the form to open an SSY account from the post office.

• Fill in the form and submit it along with identity proof of the legal guardian of the girl child, proof of residence of the legal guardian, photo of the legal guardian and the birth certificate of the girl child.

• Finish the process by depositing an amount between 250 and 1.5 lakh.