Now Aadhaar is mandatory for small saving schemes such as PPF and NSC. You invest into these schemes through the post offices and banks. Every subscriber of this scheme, old or new has to give Aadhaar number. This rule is applicable to all the 9 savings schemes of the post office. This rule is a step in the direction of checking black money. Government is working to plug every loophole of black money investment. To achieve this, it is using Aadhaar as a primary weapon.
Aadhaar For Post Office Savings Scheme
- The Aadhaar is mandatory to invest in post office small savings scheme.
- Aadhaar would be the only document for identity proof.
- If you don’t have Aadhaar, you have to give Aadhaar enrolment number.
- The old customers have to give Aadhaar number for authentication.
- Without the Aadhaar, you would not be able to withdraw money from these schemes.
- You have to deposit the self-attested photocopy of the Aadhaar with the post office or bank.
- The last date of Aadhaar submission is
31st December 201731st March 2018. The government has issued a notification on 8th January 2018 to extend this deadline.
- Without giving Aadhaar, you would not be able to get back your money.
The Aadhaar is Getting Most Important
As its name suggests, Aadhaar is is becoming the foundation of all the efforts against the black money. Since one can’t get a duplicate Aadhaar number, it has become the preferred documents for identifications. You would be aware that Aadhaar captures the fingerprints and iris image to identify a person. These two things are unique to every person. When a person goes to get the Aadhaar number, the fingerprints and iris are matched with the existing data. If it matches to someone, you would not get the Aadhaar. Because of this feature, no one can get a duplicate Aadhaar number.
So, by making Aadhaar mandatory, the government is getting a foolproof identity of every investor. Also, It can use your Aadhaar number to track your all the investments. Thus, It would become to hide the ill-gotten money.
You have seen that Aadhaar has become mandatory for every bank account and mobile number. It seems, no one would be able to avoid it. Thus it would be better if you get Aadhaar number as soon as possible. The Aadhaar also gives you facility of eKYC. It has ended the need for physical documents for investments in mutual fund and in the banks.
The Post office Savings Scheme
I have told you that Government has made Aadhaar mandatory for post office savings scheme. But are you aware of these schemes? Here is a brief introduction of these schemes. For detailed information, you can read my post on small savings schemes of the post office.
NSC is a 5-year saving scheme of the post office. In this scheme, you get a certificate when you invest. In this certificate, you can see the maturity amount. The interest rate of NSC is normally better than bank deposits. This scheme also gives you a tax benefit.
It is a 15-year saving scheme of the post office. But you can also open a PPF account in the banks. The interest of PPF is almost similar to the NSC. In this scheme, you have to deposit minimum ₹500/year. The PPF account also gives you a tax benefit.
It is a special saving scheme for the girl child. It gives better interest rate than NSC or PPF. The girl can withdraw money from this account only after the age of 18. You have to open this account in the name of girl child before she turns 10. This scheme gives tax benefit.
This saving scheme is made for the senior citizens. The interest rate of this scheme is same as Sukanya Samriddhi Scheme. In this scheme, you deposit lump sum amount and get an interest after every three months. It is also a tax saving scheme.
You can also open a recurring deposit in the post office. The rules are similar to the recurring deposit of the banks. This scheme does not give any tax benefit.
It a fixed deposit scheme. You deposit money in this scheme for a fixed period. The interest rate is fixed for the whole tenure of the deposit. Hence, you know the maturity amount in advance. 5-year time deposit gives you a tax benefit.
You can open a saving account at the post office. This is the same common saving account. You can deposit and withdraw money as per your wish. The interest rate of this account is 4% per year.
Post Office Monthly Income Scheme
As its name says, this scheme gives you monthly income. This scheme can be used as the annuity plan. This scheme is for 5 years. You get back your investment after 5 years. Meanwhile, interest is given every month.
In this scheme, you get back your investment after it becomes double. The tenure of the scheme is fixed as per the time required to double the amount. Thus the tenure of this scheme keeps changing after every review of the interest rate. The interest rate of this scheme is not very lucrative. Still is popular because of the straightforward nature.