Should small savings interest rates be cut? Find out what financial experts say

High rate on small savings forces banks to not cut rates on retail deposits, which increases cost of funds.

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Post Office - Recurring Deposit Account

Any individual (a single adult or two adults jointly) can open an account.

Advance Deposits earn rebate.

Four defaults are allowed.

Rate of interest 8.40%

Maturity value of a 5 Years RD account opened on or after 1.4.2012 with monthly deposit of INR.10/- shall be INR.746.51.

Defaults can be paid within two months.

Part withdrawal facility available.

Premature closure allowed after three years.

Pay Roll Savings Scheme is also available for employees of various Establishments.

Type of Account : Individual Account

 

Minimum Deposit : INR. 10/- and in multiples of INR. 5/- thereafter

 

Maximum Deposit : No Maximum Limit

 

Interest Calculator

 

Recurring Deposit Rules



Post Office - Public Provident Fund Account (PPF)

• Ideal investment option for both salaried as well as self employed classes.

• Non-Resident Indians (NRIs) are not eligible.

• Investment up to INR. 1,00,000 per annum qualifies for IT Rebate under section 80 C of IT Act.

• The rate of interest on the subscriptions made to the fund on or after 01.12.2011 and balances at credit of the subscriber in the existing PPF account shall bear interest at the rate of eight point eight per cent (8.80%) per annum.

• Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.

• Withdrawal permitted from 6th financial year.

• Free from court attachment.

• An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.

Public Provident Fund Acts

Public Provident Fund Rules