Post office is a public facility that provides mail services like accepting letters and parcels, providing post office boxes,selling stamps,etc.It offers additional services also. Post offices provide government firms such as passport applications, road tax, bank fees,etc.it is a government operated postal system. It is involved in delivering mail,remitting money by money orders,small saving schemes providing life insurance coverage, providing retail services like bull collections, sa.e of forms, etc.our Country has been divided into 23 postal circles. Each circle has a chief post master.Each circle is divided into regions headed by postmaster General.Theze divisions are divided into subdivisions.
Post offices have a variety of deposit schemes that have fixed returns on investment.post office offers a lot of investment options to cater to varying needs of different investors. Post office Saving Scheme returns by the government of India. Most of the post office investment schemes are tax exempt.
Post office saving accounts are like savings accounts with the bank. You can open one account with one post office and you can be transferred from one post office to another. You can open an account in the post office in the name of a minor. Post office account interest rate is 4%. The minimum balance which is required to be maintained is Rs 50. You can detect Rs 10000 per annum from the total savings account.
Post office is the oldest Organisation in India. The main post office schemes are
- post office savings account
- National Savings recurring deposit account
- National Savings time deposit account
- National Savings monthly income account
- Senior citizen savings scheme account
- Public provident fund account
- Kisan Vikas Patra account
- Suganya Samridhi account
Post office savings account acts as a normal account of any bank. You can transfer it from one post office to another. National Savings recurring deposit accounts help the investors to form a Corpus to meet their future needs. National Savings time deposit accounts provide tax benefits for the investment in the five year time deposit. National Savings monthly income accounts provide investors a certain amount and you can earn a fixed interest every month. Senior citizen Saving Scheme account offered to Indian residents aged over 60 years. The depository of this scheme matures after 5 years and you can extend additional 3 years also.
Public provident fund account is a long term investment. It is a safe post office deposit scheme. It offers tax exemption and an attractive interest rate. Kisan Vikas Patra account actually doubled as a one time investment in a period of approximately 9 years and 10 months. Sukanya Samriddhi accounts for financial betterment of the girl child. It provides parents to build capital for the future education and marriage expenses of their female child.
Post office schemes are easily enrol and it requires limited documentation. Post offices ensure saving schemes are safe investment tools and you will get a fixed return by the government. Post office schemes are best suited for rural and urban investors. Post offices schemes are more future and long term oriented schemes. It provides the best retirement plan with the investment period up to 15 years for PPF account.
An investor can diversify a portfolio for a risk free and fixed return. Post office schemes range from 4 to 8 percentage risk free investment. Post office schemes provide the highest earning schemes. Post office schemes offer fixed returns on investment. Post office monthly income schemes are safer investment options compared to equity shares and fixed income options.
When you open a monthly income scheme you cannot withdraw the amount deposited in an account prior to 5 years.you can make a maximum investment of Rs 4.5 lakhs.If you hold the scheme in multiple post offices your deposits cannot exceed Rs 4.5 lakh. The maximum limit for minor accounts is Rs 3 lakh. The minimum amount invested is Rs 1500. You can change your residential status and you can transfer your POMIS account to a convenient post office.
Maximum 3 individuals can open a joint account for this scheme. The maximum limit of joint account is Rs 9 lakh. You can open a post office monthly income scheme minor account in the name of your child. The age limit is above 10 years. They can withdraw the amount after 18 years. Every Indian citizen can open a post office monthly income scheme account.
You can withdraw a monthly interest amount through automatic transfer to your savings account through PCD or ECS. If you withdraw your investment Corpus before the laps of lock in period a certain amount of penalty is charged on the withdrawal amount depending on the time of redemption. You can invest an amount in the multiple of 100.
Documents
- ID proof
- Address proof
- passport size photo
How to open POMIS account in post office
- Buy a POMIS form from your nearest post office.
- Fill and submit the form along with the documents
- Submit to the originals documents for verification purposes
- Collate signatures of beneficiary and witness.
- You can invest capital amount through cheque
Eligibility
- You should be an resident Indian
- The age should be above 18
- You can open an account for a minor who is 10 years old.
- NRI can’t open this account
If you want to withdraw investment before the completion of one year,you don’t get benefits. If you withdraw investment from one year to 3 years the entire deposits refunded with a two percentage penalty. If you want to withdraw the investment from 4th to 5th year the entire Corpus is refunded with one percentage penalty.
Post office monthly income scheme is not a market linked investment scheme. It is guaranteed by the government. You will get a steady return from these schemes. You can decide to invest the interest earned into high profit security.it is directly controlled by the central government. You can make more revenue. You will get 6.6% return monthly. It has some limitations. It has 3 types of accounts. They are single ,joint and minor accounts.