Post Office Savings Schemes: Charges you should be aware of

Post Office Savings Schemes: Charges you should be aware of

 

Post Office offers various types of deposit schemes which are quite popular among investors as these schemes come with the sovereign guarantee – backed by the government. Many of these schemes also enjoy tax benefits under section 80C of the Income-tax Act. That is why many investors prefer having these schemes in their portfolio.

The Ministry of Communications runs Post Office schemes.

The multiple savings schemes include

Post Office Time Deposit Account (TD),

Post Office Monthly Income Scheme Account (MIS),

5-Year Post Office Recurring Deposit Account (RD),

Senior Citizen Savings Scheme (SCSS),

Post Office Savings Account,

National Savings Certificates (NSC),

Sukanya Samriddhi Accounts,

Kisan Vikas Patra (KVP),

and 15-year Public Provident Fund Account (PPF).

Some of these small saving schemes like Monthly Income Scheme, Post office Time Deposits, National Saving Scheme, etc. levy charges on depositors for certain services. For instance, you will be charged for services like transferring accounts, getting a new checkbook, issue of the account statement, etc.

If you are planning to opt for any of these post office savings schemes or have any small savings scheme account with a post office, here are the account-related service charges you should be aware of.

For the issue of duplicate passbook, depositors are charged Rs 50.

For the issue of a statement of an account, you will be charged Rs 20 for each case.

For the issue of deposit receipt, you will have to pay Rs 20 in each case.

For the issue of passbook in lieu of lost or mutilated certificate depositors will have to pay Rs 10 per registration.

Rs 50 will be charged for cancellation or change of nomination.

For transferring an account, and pledging of an account, depositors will be charged Rs 100.

For the issue of the checkbook in Savings bank account, depositors will not be charged any fee for up to 10 leaves in a calendar year. However, thereafter he/she will be charged Rs 2 per cheque leaf.

Rs 100 will be charged on dishonor of cheque from the depositor.

These charges are not limited to one or two schemes. Other schemes including Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), Sukanya Samriddhi Yojana (SSY), Kisan Vikas Patra (KVP), etc. also levy these charges.

Happy Investing