Salient Features

• Interest rate of 8.20% per annum payable monthly.


• 5% bonus also payable on maturity (for accounts opened before 1st December 2011), for accounts opened after 1st December 2011 no bonus payable on maturity.


• Maturity period is 5 years.


• Minimum investment amount is Rs.1500/- or in multiple thereof.


• Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint account.


• Premature encashment facility after one year.


• No TDS.


• Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.


• A minor having attained 10 years of age can open an account in his/her own name directly.


• Non-Resident Indian / HUF cannot open an Account. Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian.


• A separate account is opened for each deposit.


• Any number of accounts can be opened subject to the maximum prescribed limit.


• Facility of automatic credit of monthly interest to saving account if accounts are at the same post office.


• Facility of premature closure of account after 1 year to 3 years @ 2.00% discount.


• Deduction of 1% if account is closed prematurely at any time after three years.


• Facility of reinvestment on maturity of an account.


• Interest not withdrawn does not carry any interest.


• Maturity proceeds not drawn are eligible to earn savings account interest rate for a maximum period of two years.


• Account is transferable to any Post Office in India, free of cost.


• Nomination facility is available.


• Rebate under section 80 C is not admissible.


• Most suitable scheme for senior citizens and for those who need regular monthly income.


• Deposits are exempt from Wealth Tax.