The three savings schemes of post office are explained below
(i) Monthly Income Scheme (MIS) Any Indian can open a MIS account in single name or
jointly with another person. A onetime deposit upto Rs.4.5 lakh (in case of single name
account) and Rs. 9 lakh (in case of joint account) can be made. The deposit amount along with the accumulated interest is paid to the account holders at the end of five years. No premature withdrawal is allowed. A passbook is issued to the account holder.
(b) National Savings Certificate (NSC) One can buy NSC for any amount Rs.100 and more. There is no maximum limit on investment. The term of NSC is five years. A new NSC with a maturity of ten years has been introduced. The principal amount alongwith accumulated interest is paid on maturity. Funds invested in NSC subject to an overall limit of Rs. 1 lakh are eligible for tax benefit.
© Rucurring Deposit (RD) In a RD account, an equal amount of money (Rs 10 and above) is deposited every month for a period of five years. Total amount deposited during the five years together with accumulated interest is paid on maturity. A passbook is issued to the account holders.