Salient Features

• 9% interest per annum payable quarterly.


• Minimum Deposit: Rs 1000 and multiples thereof.


• Maximum Limit : 15 Lakhs.


• The scheme is for 5 years and can be extended for a further period of 3 years.


• Premature closure facility is available after 1 year with nominal penelaty.


• Risk free investment.


• Individual aged of 60 years and above can invest.


• Retiring employees aged 55 years and above can invest under scheme.


• A tax saving instrument


• Joint account can be opened with spouse.


• Best Return


• Very Safe investment - A central govt scheme

Objective Of The Scheme

We are all well aware that interest rate on Small Saving Scheme has been reduced to 5% in the last four years. The decline in interest rate was initiated from January 2000.

The interest rate on December 31, 1999 in Monthly Income Scheme was 13% which came down to 8% with effect form March 31,2003. The decrease in the interest rate had a negative impact on the lives of Senior Citizens. The dwindling interest income was cause of concern and hardship for them .Interest income is a lifetime benefit for the senior citizens. The Budget for 2004-2005 had two beneficial aspects, as far as small Saving Schemes are concerned.

The first one is that rates of interest on small savings have been kept stable with no change in rate of interest in any Post Office scheme. The second benefit came with the introduction of Senior Citizen Saving Scheme-2004 offering a higher rate of interest as compare to any other small savings scheme. The scheme has come into operation from August 2, 2004. The main objective of the scheme is to provide relief to the senior citizens and to check the further decline in their interest income.