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Post Office Savings Schemes

Savings Bank
SCHEME Interest Payable, Investment Limits Salient features
Monthly Income Rates, Periodicity and Denominations including Tax Rebate
Scheme (MIS) etc.
PostOffice 3.5% per annum Minimum INR 50/-. Cheque facility available.
Recurring Deposit Savings on individual/ joint Maximum INR Interest Tax Free.
Account
accounts. 1,00,000/- for an
Time Deposits
individual account. INR
Senior Citizen 2,00,000/- for joint
Savings Scheme account.
(SCSS) 5-YearPost On maturity INR Minimum INR 10/- per One withdrawal upto 50%
Office 10/- account month or any amount in of the balance allowed
Public Provident Recurring
fetches INR multiples of INR 5/-. No after one year. Full
Fund Deposit
Account 728.90/-. Can be maximum limit. maturity value allowed on
Kisan Vikas Patras continued for R.D. Accounts restricted to
another 5 years on that of INR. 50/-
National Savings year to year basis. denomination in case of
Certificates (NSC) death of depositor subject
Rate of interest to fulfillment of certain
Savings Schemes
7.5% (quarterly conditions. 6 & 12 months
Chart
compounded). advance deposits earn
FAQ on Banking rebate.
PostOffice Interest payable Minimum INR 200/- and Account may be opened by
Negative List for Time annually but in multiple thereof. No individual. 2,3 & 5 year
Divisional Offices Deposit
calculated maximum limit. account can be closed after
Account
quarterly. 1 year at discount.
Negative List

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Period Rate Account can also be closed

after six months but before
1 yr. A/c 6.25%
one year without interest.
The investment under this
2 yr. A/c 6.50%
scheme qualify for the
3 yr. A/c 7.25% benefit of Section 80C of
the Income Tax Act, 1961
5 yr. A/c 7.50% from 1.4.2007.
PostOffice 8% per annum In multiples of INR Maturity period is 6 years.
Monthly payable i.e. INR 1500/- Maximum INR Can be prematurely
Income
80/- will be paid 4.5 lakhs in single encashed after one year
Account
every month on a account and INR 9 lakhs but before 3 years at the
deposit of INR in joint account. discount of 2% of the
12000/-. deposit and after 3 years
at the discount of 1% of
the deposit. (Discount
means deduction from the
deposit.) A bonus of 5%
on principal amount is
admissible on maturity in
respect of MIS accounts
opened on or after
8.12.07.
15year 8% per annum Minimum INR. 500/- Deposits qualify for
Public (compounded Maximum INR. 70,000/- deduction from income
Provident
yearly). in a financial year. under Sec. 80C of IT Act.
Fund
Account Deposits can be made in Interest is completely tax-
lumpsum or in 12 free. Withdrawal is
installments. permissible every year
from 7th financial year.
Loan facility available from
3rd Financial year. No

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attachment under court

decree order.
KisanVikas Money doubles in 8 No limit on investment. A single holder type
Patra years & 7 months. Available in certificate may be issued
Facility for denominations of INR. to an adult for himself or
premature 100/-, INR. 500/-, INR. on behalf of a minor or to
encashment. 1000/-, INR. 5000/-, a minor, can also be
INR. 10,000/-, in all purchased jointly by two
Rate of interest Post Offices and INR. adults.
8.4% 50,000/- in all Head
(compounded Post Offices.
yearly)
National 8% Interest Minimum INR. 100/- No A single holder type
Savings compounded six maximum limit available certificate can be
Certificate
monthly but in denominations of INR. purchased by an adult for
(VIII issue)
payable at 100/-, 500/-, 1000/-, himself or on behalf of a
maturity. INR. 5000/- & INR. 10,000/-. minor or to a minor.
100/- grows to INR Deposits quality for tax
160.10 after 6 rebate under Sec. 80C of
years. IT Act.

The interest accruing

annually but deemed to be
reinvested will also qualify
for deduction under
Section 80C of IT Act.
Senior 9% per annum, There shall be only one Maturity period is 5 years.
Citizens payable from the deposit in the account in A depositor may operate
Savings
date of deposit of multiple of INR.1000/- more than a account in
Scheme
31st March/30th maximum not exceeding individual capacity or
Sept/31st rupees fifteen lakh. jointly with spouse. Age
December in the should be 60 years or

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first instance & more, and 55 years or

thereafter, interest more but less than 60
shall be payable on years who has retired on
31st March, 30th superannuation or
June, 30th Sept otherwise on the date of
and 31st opening of account subject
December. to the condition that the
account is opened within
one month of receipt of
retirement benefits.
Premature closure is
allowed after one year on
deduction of 1.5% interest
& after 2 years 1%
interest. TDS is deducted
at source on interest if the
interest amount is more
than INR 10,000/- p.a.
The investment under this
scheme qualify for the
benefit of Section 80C of
the Income Tax Act, 1961
from 1.4.2007.

Sec 80C benefit: Investments up to INR 1 lakh in specified securities (maximum of INR
70,000 in PPF) qualify for deduction

• Compounded half-yearly

• Compounded yearly

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• Compounded quarterly

• Payable quarterly

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