Small savings plan of the post office: For customers looking for small mail-in savings and want to earn good interest, this is a great option for you. India Post offers many small savings programs, but one of them is the Post’s Fixed Deposit Account. In this scheme, you not only get a better interest rate, but you also get tax exemption.Read also – Postal savings plan: just invest Rs 1000 in Kisan Vikas Patra and get a double return at maturity | Details here
Fixed post office deposit: who can open an account
Any adult Indian can open an account for this small savings plan. Apart from this, the guardian of a minor can also open the account. Any number of accounts can be opened under this plan.
Fixed post office deposit: how much to deposit
An account can be opened for this program with a minimum amount of Rs 1000 and after that Rs 100 can be deposited each month. However, there is no maximum limit for investing in this scheme.
Fixed post office deposit: interest rate
If you open the account under this postal scheme for 1 year, you get an interest rate of 5.5%. This interest rate continues for 2 and 3 years. However, the interest rate will increase if you open the account for 5 years. For a five year term deposit you will get 6.7% interest
In this plan, annual interest will be payable quarterly. Apart from this, withdrawals can only be made after 6 months from the date of opening the account. The term account can be closed prematurely by submitting the prescribed application form with the passbook to the relevant post office. If the fixed account is closed before the expiration of one year, the interest rate of the postal savings account will apply.