March 31 - the last day of financial year - is only a few days away. So iIf you want to save on income tax outgo during FY18 (April 1 ,2017-March 31, 2018), you may consider investing in nine small savings schemes offered by post offices. The Department of Posts or India Post offers nine small savings investment schemes: Post Office Savings Account, 5-Year Post Office Recurring Deposit Account (RD), Post Office Time Deposit Account (TD), Post Office Monthly Income Scheme Account (MIS), Senior Citizen Savings Scheme (SCSS), 15 year Public Provident Fund Account (PPF), National Savings Certificates (NSC), Kisan Vikas Patra (KVP), and Sukanya Samriddhi Accounts.
(Also Read: Income Tax (I-T) Saving Of Up To Rs. 45,000 Before March 31, 2018)
Post Office Savings Account
This account can be opened by cash only. The minimum balance to be maintained in a non-cheque facility account is Rs 50. The interest earned on post office savings accounts is tax-free up to Rs 10,000 per year from financial year 2012-13. The interest payable is 4 per annum on individual / joint accounts, according to indiapost.gov.in, the official website of India Post.
(Also Read: State Bank Of India (SBI) Public Provident Fund (PPF) Scheme)
5-Year Post Office Recurring Deposit Account (RD)
This account can be opened by cash/cheque and in case of Cheque the date of deposit shall be date of presentation of cheque. This RD account can be transferred from one post office to another and any number of accounts can be opened in any post office, said India Post. There is rebate on advance deposit of at least six installments. Interest rate with effect from 1.01.2018, is 6.9 per cent per annum (quarterly compounded).
Post Office Time Deposit Account (TD)
This account may be opened by an individual by cash/cheque. A nomination facility is available at the time of opening and also after opening of account. It can be transferred from one post office to another. Interest is payable annually but is calculated quarterly.
From 1.01.2018, interest rates are as follows:-
| Period | Rate |
| 1yr.A/c | 6.60% |
| 2yr.A/c | 6.7% |
| 3yr.A/c | 6.90% |
| 5yr.A/c | 7.40% |
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