IPPB started its operations on 30th January, 2017 the are the traditional post office and have deepest penetration in the rural Indian. IPPB has a lot of ground to cover to become a bank. Yet, they offer some of the fabulous fixed income return schemes, which were also part of traditional post office. apart from this, Postal Payment Bank also offer bank like savings account with ATM. They also accept deposits i.e. fixed deposit and recurring deposits.
Post office offers mainly 3 attractive schemes,
- Monthly Income Scheme (MIS)
- Senior Citizen Scheme (SCS)
- Sukanya Samrudhi Yojana.(SSY)
Monthly Income Scheme (MIS) : offers higher interest than FD but There is a lock in period of 5 years, and breaking that causes penalty. Anyone can subscribe to this scheme. Maximum deposit is capped at 4.5 Lakh.
Senior Citizen Scheme (SCS) : Like MIS, SCS also offers quarterly interest with 5 year lockin. BUT as name suggests, this scheme is exclusively for the senior citizens. Maximum deposit capped at 4.5 Lakh. The account can be joint i.e. Husband and wife, in that case Maximum deposit can be double – 9 lakh. SCS offers the most interest of all small saving schemes. And it’s a good fixed income scheme for senior citizen.
In cases of SCS, the depositor need to submit cheque if deposit is more than 99,000/- One bad aspect of this scheme is the elderly person need to visit the post office to open and transact in this scheme.
If the earned interest is more than Rs. 10,000 then TDS is deducted, in that case the senior citizen need to submit the 15H if the total income is below taxable limit.
Sukanya Samrudhi Yojana.(SSY) : It is a small saving scheme targeted at the girl child. the scheme was launched in 2015 and any parent or guardian of a girl can avail this scheme. As of January 2018 the interest rate is 8.3% but this rate can change as per government policy.
By default the account matures after 21 years from opening the account and upto 50% sum can be accessed once the girl turns 18 years of age.
Minimum investment : starting with Rs. 1000, maximum Rs. 1,50,000 can be invested in this scheme. This sum is eligible for tax exemption under 80C.
The funds in this scheme cannot be withdrawn before the girl attains the age of 18 years. The best aspect of this scheme is compounding effect.
National saving certificate : Another safe scheme backed by the Government of India. The interest rate on NSC is 7.8% for five year, compounded half yearly. You can claim tax exemption under 80C for the investment done in NSC, with maximum collective investments capped at 1,50,000/-