Post Office Savings Schemes

from IndiaOnARoll






Savings Bank Account3.5% p/a
  • Minimum deposit Rs 20/-
  • Additional deposits in multiples of Rs 5/-
  • Maximum balance for individual account is Rs 1,00,000/- and 2,00,000/- in case of joint accounts.
  • Withdrawal is permissible at any time without notice.
6 years Post Office Monthly Income Scheme
8% p.a. paid monthly
  • Minimum deposit Rs 1000/-
  • Account can be opened in multiples of Rs 1000/- upto 3,00,000/- in case of individuals and Rs. 6,00,000/- in case of joint accounts and also on behalf of minors.
  • Maturity period : 6 years
  • Premature withdrawals possible after one year, with 2% discount upto 3 years and thereafter 1% discount and Interest can eb transferred to SB account on writtent request.

5 years Post Office Recurring Deposit Account
7.5% p.a. compounded quarterly
  • Minimum deposit Rs 10/- per month.
  • Additional amount, should be in multiples of Rs. 5/-
  • Account can be opened by an individual/or on behalf of a minor.
  • No maximum limit.
  • Can be extended for an additional five years, on maturity, at the same rate of interest.
  • One withdrawal upto 50% of the balance allowed after one year on active (non-discontinued accounts).
  • Protected insurance benefit available on Rs. 50/- account after 2 years.
  • Premature closure allowed after 3 years.
Post Office Time Deposit Accounts
  • 1 year : 6.25%
  • 2 years : 6.50%
  • 3 years : 7.25%
  • 5 years : 7.5%
  • Minimum deposit Rs 200/-
  • No maximum limit.
  • Account can be opened for 1/2/3/5 year durations.
  • Accounts can be opened by an individual or jointly.
  • Account can be used as security deposit for Central and State govt. works as guarantee to obtain loans.
  • 2/3/5 year accounts can be closed after 1 year at reduced interest.
  • Withdrawal facility after 6 months

6 year National Savings Certificate (VIII issue)
8% p.a. compounded half-yearly
  • Minimum deposit Rs 100/-
  • Denominations of Rs 100/500/1000/10000 available.
  • No maximum limit.
  • Certificates can be purchased by individuals or on behalf of a minor.
  • No Premature withdrawal.
  • Certificates can be pledged with banks for loans.
Income Tax benefit u/s. 80 C of IT Act
Kisan Vikas Patra
Investment doubles in 8 years and & 7 months (8.4% p.a.)
  • Minimum deposit Rs 100/-
  • Can be purchased by an individual or on behalf of a minor.
  • Premature withdrawals permitted after 2 1/2 years.
15 years Public Provident Fund
8% p.a. compounded yearly
  • Minimum deposit Rs 500/-; Maximum Deposit Rs 70,000/- in a year in lumpsum or installments of Rs 500/- but not exceeding 12 installments in a year.
  • Account can be opened by individual/behalf of minor.
  • Interest calculated on the lowest balance between the 5th day and the last day of each month.
  • Loan facility from the 3rd financial year upto 25% of the amount at credit at the end of the first financial year.
  • Withdrawal permitted from the 7th financial year, subject to a limit of 50% of the balance available at the end of the 4th preceding year.
  • Account can be continued for further spells of 5 years.
  • PPF amounts cannot be attached to any court decree.
Income Tax benefit u/s. 80 C of IT Act
5 years Senior Citizens Savings Scheme
9% p.a. payable quarterly
  • Minimum deposit Rs 1000/-. Maximum upto Rs. 15,00,000/-, in multiples of Rs. 1000/-.
  • Can be extended upto 3 years after maturity.
  • Account can be opened by a single individual who has attained the age of 60 years or more.
  • Accounts can be opened by individuals who have attained the age of 55 years, if they retired under VRS or a Special Retirement Scheme.
  • Joint accounts can be held with spouses only.
  • NRI and HUF accounts not permissible.
  • Account can be closed after the expiry of one year and refund of the deposit obtained subject to a deduction of 1.5%, if the account is less less than 2 years old and 1% if it is more than 2 years old.
  • Premature closing during the extended period of 3 years does not entail any deduciton during the last two years of the extended period.
  • Account can be tranferred from Bank to Post Office and vice-versa.
6 years Post Office Monthly Income Scheme (Linked with 5 years Post Office Recurring Deposit Account)
10.11% p.a.6 years POMIS may be linked with 5 years PO Recurring Deposit Account (by extending the Recurring Deposit Account for a period of one year) by depositing the monthly interest in Recurring Deposit Account, thereby yielding 10.11% p.a. at the end of 6 years.