Tag: Post Office Savings account

Post workplace schemes charges unchanged. Are these schemes enticing than financial institution FDs

In a press release on Thursday, FinMin stated, “The rates of interest on various small savings schemes for the quarter of the financial year 2022-23 starting from 1st July 2022 and ending on 30th September 2022 shall remain unchanged from those notified for the first quarter (1st April 2022 to 30th September 2022) of the financial year 2022-23.”

Here’s a quick look!

Post Office Savings Account(SB): Here, an investor can earn as much as 4% each year. The minimal quantity for opening the account is barely ₹500. There is not any most restrict. Interest is calculated primarily based on the minimal stability between the tenth of the month and the tip of the month and allowed for entire rupees solely. Under part 80TTA of the IT Act, from all financial savings financial institution accounts, curiosity as much as ₹10,000 earned in a monetary 12 months is exempted from taxable earnings.

5-Year Post Office Recurring Deposit Account (RD): An rate of interest of 5.8 % each year (quarterly compounded) may be earned right here on minimal deposits of ₹100 per 30 days. There is not any most restrict.

As per the India Post web site, maturity values for ₹100 Dn are:

– 5 Year = ₹6,969.67 after extension with deposit.

– 6 Year = ₹8,620.98

– 7 Year= ₹10,370.17

– 8 Year= ₹12,223.03

– 9 Year= ₹14,185.73

– 10 Year= ₹16,264.76

Post Office Time Deposit Account (TD): Here, the minimal deposit worth is ₹1,000 with none most restrict.

Notably, the rate of interest is 5.5% every on a 1-year, 2-year, and 3-year time deposit. Meanwhile, the speed is 6.7% on a 5-year time deposit. There can also be a tax advantage of ₹1.5 lakh underneath part 80C of the IT Act for a 5-year TD.

As per the India Post, on deposits of ₹10,000 – the annual curiosity is ₹561 on 1-3 12 months time deposits. While the annual curiosity earned is ₹687 for ₹10,000 deposits on 5-year TD.

Senior Citizen Savings Scheme (SCSS): Investors can earn 7.4% each year underneath this scheme. There shall be just one deposit within the account in a number of of ₹1,000 most not exceeding ₹15 lakh. Interest is payable quarterly. Investment underneath this scheme qualifies for the good thing about part 80C of the Income Tax Act, 1961. However, curiosity is taxable if the entire curiosity exceeds ₹50,000 in a monetary 12 months underneath the scheme, and TDS on the prescribed charge can even be deducted. Notably, there might be no TDS if type 15 G/15H is submitted and accrued curiosity isn’t above the prescribed restrict.

As per India Post, the quarterly curiosity seems to be ₹185 on ₹10,000 deposit.

Monthly Income Scheme Account (MIS): The rate of interest right here is 6.6% each year. The most funding restrict is ₹4.5 lakh in a single account and ₹9 lakh in a joint account. Interest shall be payable on completion of a month from the date of opening and so forth until maturity. Interest is taxable within the hand of the depositor. The account may be closed on expiry of 5 years.

As per the India Post, on deposits of ₹10,000 – the month-to-month curiosity works as much as ₹55.

Public Provident Fund Account (PPF ): The rate of interest right here is 7.1 % each year (compounded yearly). The minimal funding is ₹500 and the utmost as much as ₹1.50 lakh in a monetary 12 months. Deposits may be made in lump sum or in installments. The curiosity shall be calculated for the calendar month on the bottom stability within the account between the shut of the fifth day and the tip of the month. Interest earned is tax-free underneath Income Tax Act. Further, deposits qualify for deduction underneath part 80C of the Income Tax Act. The tenure is 15 years for the scheme.

Sukanya Samriddhi Accounts (SSA): The rate of interest is at 7.6%. Meanwhile, the minimal funding restrict is ₹250 and the utmost as much as ₹1.5 lakh in a monetary 12 months. The deposit may be made most as much as the completion of 15 years from the date of opening. Also, deposits qualify for deduction underneath part 80C of the Income Tax Act.

If a minimal deposit of ₹250 isn’t deposited in an account in a FY, the account might be handled as defaulted account. However, defaulted account may be revived earlier than the completion of 15 years from the date of opening of the account by paying minimal of ₹250 + ₹50 default for every defaulted 12 months.

National Savings Certificates (NSC): The rate of interest is 6.8% on 5-year NSC. According to India Post, ₹1,000 grows to ₹1,389.49 after 5 years. That stated, the minimal funding quantity is ₹1,000 with a maturity interval of 5 years and there’s no most restrict. Deposits underneath the scheme qualify for the advantages underneath part 80C of the IT Act.

Kisan Vikas Patra (KVP ): The rate of interest right here is 6.9% compounded yearly. The quantity invested will get doubled in 124 months (10 years 4 months). The minimal funding restrict is ₹1,000 and there’s no most restrict.

Many anticipated small financial savings schemes’ rates of interest to go up for the second quarter of FY23 resulting from rising authorities bonds owing to robust demand.

According to Trading Economics knowledge, the 10-year yield of g-secs is round 7.45 %, whereas the 5-year yield is at 7.26% on June 30.

In line with Shyamala Gopinath Committee suggestions to make sure small financial savings schemes are market-linked, the Finance Ministry in March 2016, had introduced as a substitute of annual resetting of small financial savings schemes’ rates of interest for the following monetary 12 months, the rates of interest any more might be reset each quarter primarily based on the G-Sec yields of the earlier three months.

In 2011, the Gopinath committee had really useful maintaining small financial savings rates of interest greater by 25-100 foundation factors from the common yields of presidency securities.

With the small financial savings schemes’ rates of interest stored unchanged, are they enticing in comparison with financial institution deposits which have witnessed large hikes of their rates of interest since RBI began to hike repo charge?. Since May this 12 months, RBI has hiked the repo charge by 90 foundation factors – taking the speed to 4.90%.

Here is the record of rates of interest supplied by main banks on their fastened deposits.

SBI:

From June 14, SBI is providing a 5.30% rate of interest to common prospects on 1 12 months to lower than 2 years tenure. The charge is 5.80% for senior residents on the identical tenure.

Meanwhile, the financial institution gives a 5.35% charge to common prospects and 5.85% to senior residents on 2 years to lower than 3 years tenure.

The rate of interest is 5.45% for normal prospects on 3 years to lower than 5 years tenure, and 5.95% is obtainable to senior residents for a similar.

On 5 years and as much as 10 years tenure, the speed is 5.50% for normal prospects and 6.30% for senior residents.

These charges are relevant on FDs beneath ₹2 crore.

HDFC Bank:

On FDs beneath ₹2 crore, HDFC Bank gives a 5.35% charge on tenures 1 12 months to 2 years for normal prospects, whereas the speed comes at 5.85% for senior residents on the identical.

A daily buyer earns 5.50% on their deposits maturing 2 years 1 day – 3 years. For the identical interval, senior residents earn 6%.

The charge is 5.70% for normal prospects on 3 years 1 day- 5 years tenure, and 6.20% for senior residents on the identical. Meanwhile, the speed is 5.75% for normal prospects and 6.50% for senior residents for five years 1 day – 10 years tenure.

An Additional Premium of 0.25% (over and above the present premium of 0.50%) can also be given to Senior Citizens who want to e book the Fixed Deposit of lower than ₹5 crore for a tenure of 5 years 1 Day to 10 Years.

ICICI Bank:

On FDs beneath ₹2 crore, ICICI Bank gives a 5.35% charge on deposits maturing from 1 12 months to 2 years. A senior citizen earns 5.85% for a similar interval.

Meanwhile, for normal prospects, the speed is 5.50% on 2 years 1 day to three years tenure; 5.70% on 3 years 1 day to five years; and 5.75% on 5 years 1 day to 10 years tenure.

A senior citizen earns 6% on 2 years 1 day to three years tenure; 6.20% on 3 years 1 day to five years; and 6.50% on 5 years 1 day to 10 years.

Resident Senior citizen prospects will get a further rate of interest of 0.25% for a restricted time over and above the present extra charge of 0.50% each year for above 5 years tenure.

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First article

June 30, 2022
PPF, different small financial savings scheme rate of interest may very well be hiked from July

The Indian authorities decides rates of interest on these financial savings schemes each 3 months of a yr. The Centre will announce the brand new rates of interest for the interval of July – September 2022, by finish of this month. It is believed that rate of interest of those schemes will probably be hiked as a result of rising g-secs.

According to the World Government Bonds knowledge, on Wednesday, India’s 10-year authorities bonds yield stands at 7.460% which has risen by 99.9 foundation factors in six months and 11 foundation factors in 1 month. While the 5-year yield is at 7.269% rising by 140.4 foundation factors in six months and 12.8 foundation factors in 1 month.

The 2-year and 3-year g-sec yields are at 6.603% and seven.005% rising by 163.3 foundation factors and 171 foundation factors in six months. While the bounce is about 28.2 factors and 14.8 foundation factors in a single month.

The 1-year g-sec yield has climbed by a whopping 207.1 foundation factors in six months and is at 6.303%. In one month, this yield has soared 39.1 foundation factors.

For the shorter phrases, 3-months and 6-month g-sec yields are at 5.090% and 5.770% rising by 146 foundation factors and 184 foundation factors in six months.

For April 1 to June 30, 2022, the rate of interest on the Post Office Savings account is 4%, whereas 1 to 3-year time period deposits have an rate of interest of 5.5% every. The 5-year time period deposit fee is 6.7%, whereas the 5-year recurring deposit scheme fee is 5.8%.

Senior citizen financial savings scheme has an rate of interest of seven.45, whereas the Monthly Income Account (MIS) rate of interest is 6.6% and National Savings Certificate (NSC) rate of interest is 6.8%.

Public provident fund scheme has an rate of interest of seven.1%, however, the speed is 6.9% on Kisan Vikas Patra and seven.6% on Sukanya Samriddhi Account Scheme.

Economists at ICRA of their newest report mentioned, rates of interest on varied small financial savings schemes haven’t been modified for the final eight quarters since Q1 FY2021. Rates for the small financial savings schemes for Q2 FY2023 are set to be introduced in end-June 2022.

According to the economists, the typical month-end yields on G-Sec for one-year, two-year, and five-year bonds have elevated considerably by 138 bps, 93 bps, and 79 bps, respectively, from Mar 2022- May 2022, following a rise of 38 bps, 31 bps, and 31 bps, respectively, throughout Dec 2021-Feb 2022.

Thereby, ICRA economists mentioned, “we expect the interest rates on small savings schemes to be hiked for Q2 FY2023, given the sharp increases seen in the G-Sec yields of various maturities, to which such rates are linked. An increase in small savings rates could lead to higher flows into such schemes, limiting the need for additional market borrowings on account of the overshooting of fiscal deficit.”

In March 2016, in keeping with Shyamala Gopinath Committee suggestions to make sure small financial savings schemes are market-linked, the Finance Ministry had introduced as an alternative of annual resetting of small financial savings schemes’ rates of interest for the subsequent monetary yr, the rates of interest any longer will probably be reset each quarter primarily based on the G-Sec yields of the earlier three months.

The Gopinath committee had really helpful holding small financial savings rates of interest greater by 25-100 foundation factors from the typical yields of presidency securities.

FinMin in 2016 had introduced the extra rate of interest spreads on small financial savings schemes like PPF, Senior Citizen Savings Scheme, Sukanya Samridhi Scheme, NSC, and so on. The extra unfold is 25 foundation factors for PPF, 100 foundation factors for Senior Citizen Savings Scheme, 75 foundation factors for Sukanya Samridhi Scheme, 25 foundation factors for five-year time deposit, and 25 foundation factors for National Savings Certificate, and 25 foundation factors for Monthly Income Scheme. These extra rate of interest spreads are being continued.

Government Security (G-Sec) is a tradeable instrument issued by the central and state governments. The instrument represents the Government’s debt obligation. Notably, these securities are short-term ( known as treasury payments, with authentic maturities of lower than one yr) or long-term ( like Government bonds or dated securities with an authentic maturity of 1 yr or extra).

In India, the central authorities points each treasury payments and bonds or dated securities whereas the state governments difficulty solely bonds or dated securities, that are referred to as the State Development Loans (SDLs). As per RBI FAQs, G-Secs carry virtually no danger of default and, therefore, are referred to as risk-free gilt-edged devices.

Another purpose for the hike in government-owned small financial savings schemes may very well be due to banks mountaineering their fastened deposit rates of interest amidst a repo fee hike state of affairs. To compete with financial institution FDs and make submit workplace financial savings engaging for purchasers, the federal government might enhance the rates of interest on these schemes.

In the final two insurance policies, RBI has hiked the coverage repo fee by 90 foundation factors. The first hike was 40 foundation factors in May and the second of fifty foundation factors in June coverage. Now coverage repo fee is at 4.90%. There is extra room for fee hikes as RBI focuses on taming the multi-year excessive inflation.

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First article

June 29, 2022
IPPB vs Post Office Savings Account(SB): Check rates of interest and advantages

For buyers who’re taking their preliminary steps in the direction of private finance, opening a financial savings account can profit in a wide range of methods, from rates of interest to safety and liquidity. The first two issues that spring to thoughts when opening a financial savings account are deposit safety and rates of interest. Individuals can ameliorate this by trying into Post Office Savings Accounts (POSB) and India Post Payments Bank (IPPB) financial savings accounts. Because these two deposit choices are regulated by the Department of Post, which is a part of the Ministry of Communications of the Government of India, the chance of deposit security is only zero. Following IPPB’s announcement of a 25 foundation level rate of interest drop on financial savings account variants yesterday, allow us to evaluate the perks and rates of interest of each IPPB and POSB for a greater understanding earlier than opening one.

IPPB Savings Account

IPPB offers three sorts of financial savings accounts: Regular Savings Account, Digital Savings Account, and Basic Savings Account, for a superb different. Regular financial savings accounts at IPPB may be established with no preliminary deposit quantity and no requirement for the shopper to take care of a month-to-month common steadiness. This account may be linked to a POSA (Post Office Savings Account), which might sweep any day-end balances over Rs. 2 lakh into the linked POSA (Post Office Savings Account). Customers can create a Regular Savings Account at any of the financial institution’s entry factors or at their residence, they usually could make limitless money deposits and withdrawals.

As the title suggests, anybody over the age of 18 with an Aadhaar and PAN card can open a digital financial savings account with zero steadiness on-line via the IPPB Mobile App. Customers will obtain advantages similar to a free RuPay Virtual Debit Card, no month-to-month common steadiness requirement, free month-to-month e-statement, and a most yearly cumulative deposit restrict of Rs. 1,20,000 by opening an account. Customers who open a Digital Savings Account with IPPB should full the KYC necessities inside 12 months to maintain the account operational.

Customers who open a Basic Savings Account obtain the identical advantages as those that open a Regular Savings Account, however they’ll solely make 4 money withdrawals per thirty days. There is not any requirement to take care of a month-to-month common quantity, and the account may be began with no steadiness. This account may be linked to a POSA (Post Office Savings Account), and any sum over Rs. 2 lakh on the finish of the day may be transferred into the linked POSA (Post Office Savings Account). IPPB has deducted 25 foundation factors on rates of interest for the entire above-mentioned financial savings account variations. IPPB will present the next rates of interest on financial savings financial institution deposits commencing June 1, 2022.

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IPPB Savings Account Interest Rates (IPPB)

Post Office Savings Accounts (POSB)

This deposit choice is a part of the Department of Posts’ Post Office Savings Schemes. A single grownup, two adults, a guardian on behalf of a minor, a guardian on behalf of an individual of unsound thoughts, or a minor above the age of ten years can all open a Post Office Savings Account (SB). A minimal deposit of INR 500/- is required to begin an account, which has no most restriction. The minimal withdrawal quantity is Rs. 50. Post workplace financial savings accounts are actually giving a 4.0 per cent annual rate of interest, which is set on the premise of a minimal quantity between the tenth and the top of the month. According to the rules of India Post, curiosity shall be credited to the account on the finish of every fiscal 12 months on the rate of interest specified by the Ministry of Finance, and curiosity obtained on all financial savings financial institution accounts as much as Rs. 10,000 is excluded from taxable earnings underneath part 80TTA of the Income Tax Act.

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Post Office Savings Account Interest Rates (India Post)

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June 1, 2022
PO Time Deposit Account: Link your financial savings account earlier than Mar 31, here is why

If you’ve got National Savings Time Deposit Account(TD), then you need to hyperlink your account with PO Savings or Bank account earlier than March 31, 2022, as the federal government makes the linking obligatory efficient from April 01, 2022. One of the most important advantages of linking a TD account with a PO Savings or Bank account could be that the holder will earn further curiosity on their financial savings.

The authorities made the choice after it was introduced to note that some TD accounts weren’t linked with PO Savings or Bank accounts for credit score of their month-to-month, quarterly, half-yearly, or annual curiosity. Thereby, curiosity due on these TD accounts was left unpaid within the sundry workplace account. Also, the Centre noticed that many TD accounts are usually not conscious of the annual curiosity cost of TD Accounts. Not simply that, many depositors are additionally not conscious that undrawn curiosity shall not earn any curiosity.

By linking TD account with PO Savings or Bank Account, an account holder will earn further curiosity on curiosity credited on such accounts, nevertheless, that is relevant solely when curiosity just isn’t withdrawn from TD accounts. Simply put, the assured curiosity you earn in your TD account, is eligible for extra curiosity in the event that they haven’t withdrawn your curiosity – however for this, the account must be linked with PO Savings or Bank accounts.

Also, by linking TD account with PO Savings or Bank account, depositors can withdraw due curiosity with out visiting the submit workplace and make the most of the identical by numerous digital means. Further, filling up a number of withdrawal types for accounts could be averted; and the power of computerized credit score of curiosity quantity from TD account by PO Savings account to RD Accounts can also be accessible.

Other causes to hyperlink TD accounts with PO Savings or Bank account is to have higher management over POSB operations, promotion of digital transactions, prevention of cash laundering actions, and as a safety measure to keep away from frauds.

In an announcement, the Centre stated, “the competent authority has decided for mandatory linking of either PO Savings Account or Bank Account for crediting of interest payment of MIS/SCSS/TD Accounts.”

Under the brand new tips, CEPT, Chennai is directed to supply a listing of these lively TD accounts not linked with a financial savings account (both PO Savings Account or Bank Account) to all of the Circles and CPC (CBS). Further, the Circles ought to arrange a particular drive to hyperlink financial savings accounts with TD accounts for curiosity cost both by issuing a request letter or contacting these account holders.

Meanwhile, the account holders could have the choice of getting curiosity from TD accounts credited into their Post Office Savings Account or Bank Account.

For linking TD account with PO Savings account, the account holder is required to submit SB-83 Form, whereas, for linking Bank account, a TD account holder ought to submit ECS-1 Form with a canceled cheque copy of the primary web page of the passbook of the checking account. Also, the account holder ought to submit their passbooks with these types for such an endorsement on the submit workplace involved.

Furthermore, the Centre has suggested India Post Payments Bank to plan an analogous foolproof system to facilitate its prospects avail curiosity credit score from MIS/SCSS/TD accounts into their IPPB Savings Account, and inform the Department in order that the identical might be knowledgeable to all involved.

“Interest on MIS/SCSS/TD accounts will be credited only in the account holder’s PO Savings Account or Bank Account with effect from April 01, 2022,” stated the assertion.

If did not hyperlink TD account with PO Savings or Bank account earlier than March 31, 2022, then curiosity is credited in TD sundry workplace accounts and the excellent curiosity must be paid solely by credit score in PO Savings Account or by Cheque. That means curiosity cost in money just isn’t allowed from the TD sundry workplace account from April 01.

TD accounts is among the submit financial savings schemes of presidency with curiosity payable yearly however calculated quarterly. The rate of interest on the TD account varies from 5.5% to six.7% relying upon the tenure. The account could be opened with a minimal of ₹1000 and in multiples of ₹100. There isn’t any most restrict for funding on this account. The deposit quantity shall be repayable after the expiry of 1 12 months, 2 years, 3 years, 5 years (because the case could also be) from the date of opening.

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March 20, 2022
Post workplace MIS: Why it’s essential urgently hyperlink your financial savings account

Linking your National Savings Monthly Income Account(MIS) account with PO Savings or checking account has been made necessary. MIS is among the many submit workplace financial savings schemes that give a hard and fast fee of returns and may be opened with a minimal of Rs1000. From April 01 of this yr, the federal government will probably be crediting rates of interest on MIS accounts provided that they’re linked with PO Savings or financial institution accounts. Failure to hyperlink the 2 accounts by March 31, 2022, might result in curiosity earned to credit score within the sundry workplace.

The concept behind linking MIS accounts with PO Savings or Bank accounts is to make sure that residents can additional curiosity earnings, strengthen digital drive, and deal with cash laundering.

It was famous that some MIS account holders haven’t linked their accounts with PO Savings or financial institution accounts for the credit score of their month-to-month, quarterly, half-yearly, and annual curiosity – and that resulted in curiosity due on this account being left unpaid and credited again to the sundry workplace. Many depositors should not conscious however undrawn curiosity will earn any curiosity. Simply put, for those who hyperlink your MIS account with PO Savings or Bank account then you’re eligible for incomes extra curiosity on all of the pursuits that aren’t withdrawn from his or her MIS account.

Not simply that, if an MIS account is linked with PO Savings or Bank account then depositors can withdraw as a result of curiosity with out the necessity to go to the submit workplace, and the proceeds may be utilized by means of numerous digital means. Among different advantages are – submitting up of a number of withdrawal varieties for every MIS account may be prevented and depositors can avail the power of computerized credit score of curiosity quantity from their MIS account through PO Savings Account to RD accounts.

In an announcement, the Centre stated, “to have better control over POSB operations, promotion of digital transactions, prevention of money laundering activities and as a preventive measure to avoid frauds, the competent authority has decided for mandatory linking of either PO Savings Account or Bank Account for crediting of interest payment of MIS/SCSS/TD Accounts.”

Following this, the federal government has issued a number of pointers with impact from March 03, 2022.

It has been determined that CEPT, Chennai will present an inventory of these energetic MIS accounts not linked with a financial savings account (both PO Savings Account or Bank Account) to all of the Circles and CPC (CBS). Later, Circles will set up a particular drive to hyperlink financial savings accounts with MIS accounts for curiosity cost both by issuing a request letter or contacting these account holders.

In case of linking PO Savings account, then an MIS account holder must submit SB-83 Form whereas linking with a checking account would require the submitting of ECS-1 Form. In each the varieties, an account holder ought to submit passbooks for such an endorsement on the submit workplace involved. Necessary remarks ought to be made within the MIS passbook on the final web page of the passbook with signature and stamp.

Furthermore, IPPB has been directed to plan the same foolproof system to facilitate its clients avail curiosity credit score from MIS accounts into their IPPB Savings Account, and inform the Department in order that the identical will probably be knowledgeable to all involved.

In case, an MIS account holder fails to hyperlink PO Savings or Bank account as much as March 31, 2022, then the curiosity you earned will probably be credited in sundry workplace accounts and the excellent quantity will solely be paid by means of credit score in PO Savings Account or by Cheque. No money cost of curiosity will probably be allowed from the sundry workplace account with impact from April 01, 2022.

MIS account is a financial savings scheme that provides a 6.6% fee of curiosity every year payable month-to-month. The minimal funding restrict is Rs1,000 and may be prolonged to a most of Rs4.5 lakh. An individual can go for MIS both individually on collectively. A minor above 10 years can open the account in his or her identify, nevertheless, beneath that age group the account may be opened by a guardian or mother or father.

If MIS is opened collectively, then all of the joint holders shall have an equal share within the funding. Further, for the calculation of the share of a person in a joint account, every joint holder has an equal share in every joint account.

Noteworthy, in MIS, curiosity is payable on completion of a month from the date of opening and so forth until maturity. Withdrawing deposits from the account isn’t allowed earlier than the expiry of 1 yr from the date of deposits. Also, if an account is closed after 1 yr and earlier than 3 years – a deduction equal to 2% from the principal quantity will probably be deducted. However, if an account is closed after 3 years and earlier than 5 years, then the deduction is the same as 1% of the principal quantity.

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March 15, 2022
How submit workplace financial savings account holders can use newly launched IVR facility

The Department of Posts has just lately unveiled its new “Interactive Voice Response (IVR)” facility for Post Office Savings Bank (POSB) account holders. The new facility is out there by means of your cellphones. According to the round, now prospects having small saving schemes similar to PPF, NSC, and others can also use the IVR facility by simply dialling the toll-free variety of India’s Post which is 18002666868. Post workplace account holders can use the brand new IVR service to carry out quite a lot of companies on their accounts.

How to make use of the IVR facility

The IVR gives its saving account prospects with a number of choices. If a buyer needs any data within the language ‘Hindi,’ simply Press 1. To know the account stability of all of the schemes, Press 5, adopted by dialling the account quantity, adopted by a hash(#). To block an ATM card, Press 6, adopted by coming into the cardboard quantity, then account quantity, and three after the client ID quantity.

How to make use of IVR to know the final 4 transactions

To know concerning the final 4 transactions, Press 2. To learn about a selected transaction, Press 3. To know extra concerning the curiosity earnings and tax deduction, Press 4. Press 5 to cease the check-in of the account.

IVR menu:

Press 1 for Hindi

Press 2 for English

Press 5 for account stability inquiry (all schemes)

Enter account quantity adopted by #

Press 6 for blocking of ATM card

Press 1 utilizing Card Number

Press 2 utilizing Account Number

Press 3 utilizing Customer ID (CIF No)

Press 7 for different Services

Press 2 for India Post Banking Services (POSB)

Press 1 for inquiries or transactions in your financial savings account (SB/PPF/SSA)

(Enter account quantity adopted by #)

Press 1 to know the standing of the cheque issued in your account

Press 2 to know the small print of the final 4 transactions in your account.

Press 3 to know the small print of a selected transaction of your account.

Press 4 to know the curiosity earned and paid or tax deducted in your account

Press 5 to cease cost of cheque of your account.

Press # to repeat choices

Press * to go to the earlier menu

Press 2 for inquiries on transactions in your time period deposit account (TD/RD/SCSS/MIS/KVP/NSC)

(Enter account quantity adopted by #)

Press 3 for ATM-related requests

Press 1 for ATM card pin change.

Press 2 to situation a brand new ATM card

Press # to repeat choices

Press * to go to the earlier menu

Press 4 for extra data on postal financial savings merchandise

Press 1 for brand spanking new account and scheme

Press 2 for debit or ATM card particulars

Press 3 for the speed of curiosity and repair cost

Press 4 for third get together merchandise

Press # to repeat choices

Press * to go to the earlier menu

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October 19, 2021
Post workplace financial savings account: Interest price, revenue tax rule that you must know

Post workplace financial savings account: Under Post Office Saving Schemes, one can open submit workplace financial savings account however not like financial institution financial savings account, right here one can save revenue tax outgo as much as ₹13,500 in a single monetary 12 months. However, this ₹13,500 can develop into ₹17,000 if the submit workplace financial savings account is a joint account. As per tax and funding consultants, that is an extra revenue tax profit that submit workplace financial savings account holders can declare whereas submitting revenue tax return (ITR).

Post workplace financial savings account rate of interest

They stated that when financial institution financial savings account rates of interest are going round 3 per cent submit workplace financial savings account rate of interest can be 4 per cent each year — round one third extra return than financial institution financial savings account.

So, if an investor has low threat urge for food, then she or he is suggested to open a submit workplace financial savings account and revel in 33 per cent further rate of interest together with at the least 35 per cent extra revenue tax exemption restrict ( ₹13,500 as an alternative of ₹10,000).

Speaking on the revenue tax exemption restrict utilized for submit workplace financial savings account; Mumbai-based tax and funding knowledgeable Balwant Jain stated, “Interest on savings bank account is presently exempt under section 10(15)(i) of the income tax act, vide notification no. G.S.R. 607(E) dated 9 June 1989. The said notification is amended to provide that such interest from Post Office Savings Bank Account will be exempt as follows — ₹3,500 in case of individual account, ₹7,000 in case of joint account.”

Balwant Jain went on so as to add that ₹3,500 tax exemption for single submit workplace financial savings account is an extra profit that one can declare in a single’s ITR after claiming ₹10,000 deduction obtainable underneath Section 80 TTA of the revenue tax act.

Advising submit workplace financial savings account holder to declare ₹3,500 or ₹7,000 revenue tax exemption throughout ITR submitting; SEBI registered tax and funding knowledgeable Jitendra Solanki stated, “The post office savings account holder must declare this income tax exemption during ITR filing under ‘Exempt Income’ head, if the post office depositor has declared income tax exemption on the interest earned from its post office savings account.”

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July 27, 2021
Do verify if submit workplace financial savings supply quarterly or annual compounding

The frequency of compounding in investments could make a major distinction. Therefore, earlier than investing in a set earnings instrument, verify whether or not the compounding frequency is quarterly or annual. Take the instance of the Small Savings Scheme that India Post presents. The time deposits supply quarterly compounding, whereas compounding frequency in Kisan Vikas Patra and National Savings Certificate is annual, in accordance with its web site. Here’s how the frequency of compounding could make a distinction in your funding. Assume that you’ve got invested ₹1 lakh in a set earnings instrument, and it presents 6% curiosity. If the frequency of compounding is one yr, the investor will get ₹1,06,000 after a yr. However, if the frequency is quarterly, the person will get ₹106,136 – a distinction of ₹136. The quantity appears to be like insignificant at 6% and for a tenure of 1 yr. Assume that a person invests ₹5 lakh in an instrument that provides 9% rate of interest for a 10-year time period. Here’s how the maths will work out. After a decade, if the cash compounds quarterly, the investor will get ₹12,17,594. However, if the frequency of compounding is annual, the ultimate corpus shall be 11,83,682. The distinction shall be ₹33,912. It is nearly 7% of the quantity invested initially. Compounding is a strong software to create wealth. There are many examples of how compounding works in a scientific funding plan of an fairness fund. For instance, in case you make investments ₹10,000 each month for 20 years, because of compounding, you would find yourself with a corpus of ₹1 crore if fairness funding presents a mean return of 12% annually. In this case, the funding is ₹24 lakh. But compounding is important in debt investments, too. You ought to, due to this fact, be careful for thea frequency at which your funding is compounded. Subscribe to Mint Newsletters * Enter a sound e mail * Thank you for subscribing to our e-newsletter.

March 16, 2021
PPF, different put up workplace financial savings account: New guidelines on money deposit, withdrawal

In a bid to supply aid to Post Office Savings account holders, India Post has introduced it’s going to increase the withdrawal restrict at Post Office GDS (Gramin Dak Seva) branches. The withdrawal restrict per particular person has been hiked from ₹5,000. At a time, when numerous banks are reducing financial savings account rate of interest, the put up workplace financial savings account rate of interest is at 4 per cent every year. Here the money deposit, withdrawal guidelines change for put up workplace account holders 1) India Post has introduced that it shall hike the withdrawal restrict at Post Office GDS (Gramin Dak Seva) Branches. And now the restrict has been hiked from ₹5,000 to ₹20,000 per buyer. The transfer is geared toward growing put up workplace deposits over time. 2) No department postmaster (BPM) shall settle for money deposit transaction for greater than ₹50,000 in an account in a day. Further, until the Public Provident Fund (PPF)/Senior citizen financial savings scheme ( SCSS )/Monthly Income Scheme (MIS)/Kisan Vikas Patra (KVP)/National Savings Certificate (NSC) schemes are made obtainable in RICT CBS App, deposit in these accounts is to be accepted by withdrawal kind or cheque solely. 3) All PosB cheques issued by any CBS Post workplace if introduced at any Core Banking enabled (CBS) Post Office shall be handled as at par cheques and shall not be despatched for clearing. 4) No money transaction for greater than ₹50,000 shall be allowed at different SOLs in an account in a day. 5) For financial savings account maintained at a put up workplace, the minimal required quantity that must be maintained is ₹500 and if the minimal standards will not be met, ₹100 shall be deducted as an account upkeep payment. In December final 12 months, the Department of Post had stated that now sustaining a minimal steadiness in Post Office Savings Account is necessary. “Maintain a minimum balance of ₹500 in your savings account. Assure your savings account has a minimum balance amount by 11th December 2020, failing which maintenance charge ₹100 plus GST will be deducted from your account.” Subscribe to Mint Newsletters * Enter a sound electronic mail * Thank you for subscribing to our publication.

March 7, 2021