Saving services of post office:
1. Banking services

Just like we open and maintain a savings bank account we can open a savings account in post office as well. The post office also issues cheque books and ATM cards to the account holders.

2. Recurring deposit scheme:

• In this scheme a person can open recurring deposit account with the post office and deposit a specific amount every month for 5 years.
• At the end of 5 years the account matures. The account holder gets back his principle amount plus interest earned in 5 years.
• If the account holder wishes the account can be extended for another 5 years.

3. Term deposit:

• Term deposit service is just like the fixed deposit service. A person can choose to keep his money deposited for 1, 2, 3 or 5 years in the post office
• A person can open time deposit account with a minimum of ₹ 200/- and then in its multiple.
  Post-office calculates the interest every quarter i.e. every 3 months but pays the interest to the account holder every year.
• This account can be transferred from one post office to another and can also be closed before it matures.

4. National Savings Certificate (NSC):

• NSC is an Indian government savings bond primarily used for small savings.
• These bonds or certificates are managed by the postal department.
• One can buy an NSC from a post office. Its maturity period is either 5 or 10 years.
• The postal department informs the buyer in advance about the interest he will earn on maturity.
• On maturity the NSC owner can go to the post office, complete the formalities and obtain the matured amount.

5. Kisan Vikas Patra (KVP):

• Under this scheme the depositor buys a KVP from the post office and gets double the invested money after 100 months i.e. 8 years and 4 months. This certificate is available only for specific denominations of ₹ 1000, 5000, 10,000 and 50,000.
• On maturity the depositor can complete the formalities at the post office and withdraw his money along with interest.

6. Public Provident fund:

• A PPF account once opened cannot be closed before 15 years.
• After 15 years the account can be extended for another 5 years depending, upon the government rules at that time.
• This account can be opened with a minimum amount of ₹ 500.To keep this account active one needs to deposit a minimum of ₹ 500 every year.
• The interest earned out of PPF is exempted from income tax i.e. one does not need to pay income tax on the money he earns through PPF scheme. In case the account holder dies the PPF money will be given to the nominee.

7. Monthly income scheme (MIS):

• This scheme is targeted for investors who wish to obtain the earned interest every month and hence the name monthly income scheme.
• A person can open an individual or joint account.
• The account is to be maintained for 5 years. However one can withdraw the deposited money after 1 year subject to terms and conditions of the postal department.
• The account can be transferred from one post office to another.