Investment in three small savings schemes offered by the post office is eligible for a deduction under Section 80C of the Income Tax Act
Did you know you can access a variety of banking services at a post office? Other than mailing services, India Post – which operates a network of more than 1.5 lakh post offices across the country, provides a variety of banking services. One can carry out a number of banking-related tasks at a post office: from setting up a savings account under Government of India’s small savings schemes to a National Pension System or NPS account (all citizens model), which is a voluntary pension scheme managed by the PFRDA or Pension Fund Regulatory and Development Authority.
While an interest rate of 4 per cent is applicable on the deposit in the savings account, investment in the other savings schemes at the post office fetches interest at the rates to the tune of 7 per cent to 8.7 per cent, according to India Post’s website – indiapost.gov.in.
Post office savings scheme lock-in period
The savings schemes of Time Deposit, Recurring Deposit, Monthly Income, Senior Citizens, PPF, NSC and Kisan Vikas Patra come with a lock-in period – also known as maturity period – of one year to 15 years, according to the India Post website.