It’s probably been months or years since you posted a letter in that ubiquitous red colour box. Between e-mail and courier who needs letter boxes
| ACCOUNT TYPE | INTEREST RATE |
| Savings bank | 3.5% |
| Term deposit 1-yr | 6.25% |
| Term deposit 2-yr | 6.5% |
| Term deposit 3-yr | 7.25% |
| Term deposit 5-yr | 7.5% |
| Annual interest rate; compounded every quarter for term deposits | |
Savings bank and term deposits
Anyone can open a savings account with a post office. Like with banks, this comes with cheque facility and earns 3.5% interest per annum. But deposit in an individual savings account can’t exceed Rs 1 lakh.The term deposit comes for one-, two-, three- and five-year tenures earning quarterly interest rate. One can also opt for a recurring deposit account with a minimum Rs 10 monthly contribution.
PO MIS
The post office monthly income scheme has been in existence long before the systematic withdrawal plans were introduced by mutual funds.These work as an annuity with a monthly outflow from the deposit earning an 8% annual interest. For ease you can automatically credit the income into your savings bank account. No tax benefits on this investment.
NSC (National Savings Certificate)
The National Savings Certificate is a six-year deposit earning 8% interest compounded halfyearly and can be traded. NSC comes with Section 80C tax benefits.
>> Buy National Savings Certificates (NSC) every month for six years—reinvest on maturity. On retirement it will fetch you monthly pension as the NSC keeps maturing.
PPF (Public Provident Fund)
There are more Public Provident Fund accounts with post office than with banks, reflection of the reach post office has in collecting savings.The immensely popular PPF accounts have a 15-year lock-in. Investing in up to Rs 70,000 a year qualifies for Section 80C benefits and one can withdraw from these from the sixth year onwards.
>> Withdraw from the 8th year (up to Rs 70,000) and reinvest for the balance tenure (7 years) without having to make fresh contributions
Bonds and Funds
With a wide network in place, postoffices have been distributing mutual funds in partnership with Principal Mutual fund, Prudential ICICI and SBI Mutual Funds. One can also buy RBI bonds through the post office.
Postal life insurance
Started in 1884 as a welfare measure for the employees of posts and telegraphs department, postal life insurance is now offered to employees of the Central and State governments and workers of nationalised banks, public sector undertakings, financial institutions, local bodies and government-aided educational institutions.
>>Policies offered: Endowment, whole life, children’s policy and joint life insurance
International money transfer
For lakhs of NRI dependents international money transfer is a boon and only way to receive money from loved ones working abroad and that too within minutes of it being transferred. In collaboration with Western Union Financial Services (US).
>>Targeted at NRI dependent families in India International tourists Foreign students studying in India
Utility bill payment
Acceptance Of Payments Across Utilities—phone And Electricity (BSNL, Airtel And State Electricity Boards) Is Also Offered. Surprise, Surprise: The Department Of Posts Allows You To Electronically Pay Utility Bills Once One Is Registered With The Department, Doing Away With Physical Contact With The Post Office.
