Post Office Savings Schemes

SCHEME	Interest Payable, Rates, Periodicity etc.	Investment Limits and Denominations	Salient features including Tax Rebate
PostOffice Savings Account	3.5% per annum on individual/ joint accounts.	Minimum Rs. 50/-. Maximum Rs. 1,00,000/- for an individual account. Rs. 2,00,000/- for joint account.	Cheque facility available. Interest Tax Free.
5-YearPost Office Recurring Deposit Account	On maturity Rs. 10/- account fetches Rs. 728.90/-. Can be continued for another 5 years on year to year basis. Rate of interest 7.5% (quarterly compounded)	Minimum Rs. 10/- per month or any amount in multiples of Rs. 5/-. No maximum limit.	One withdrawal upto 50% of the balance allowed after one year. Full maturity value allowed on R.D. Accounts restricted to that of Rs. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebate.
PostOffice Time Deposit Account	Interest payable annually but calculated quarterly. Period Rate 1 yr. A/c 6.25% 2 yr. A/c 6.50% 3 yr. A/c 7.25% 5 yr. A/c 7.50%	Minimum Rs. 200/- and in multiple thereof. No maximum limit.	Account may be opened by individual. 2,3 & 5 year account can be closed after 1 year at discount. Account can also be closed after six months but before one year without interest. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
PostOffice Monthly Income Account	8% per annum payable i.e. Rs. 80/- will be paid every month on a deposit of Rs. 12000/-.	In multiples of Rs. 1500/- Maximum Rs. 4.5 lakhs in single account and Rs. 9 lakhs in joint account.	Maturity period is 6 years. Can be prematurely encashed after one year but before 3 years at the discount of 2% of the 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 Public Provident Fund Account	8% per annum (compounded yearly).	Minimum Rs. 500/- Maximum Rs. 70,000/- in a financial year. Deposits can be made in lumpsum or in 12 installments.	Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rd Financial year. No attachment under court decree order.
KisanVikas Patra	Money doubles in 8 years & 7 months. Facility for premature encashment. Rate of interest 8.4% (compounded yearly)	No limit on investment. Available in denominations of Rs. 100/-, Rs. 500/-, Rs. 1000/-, Rs. 5000/-, Rs. 10,000/-, in all Post Offices and Rs. 50,000/- in all Head Post Offices.	A single holder type certificate may be issued to an adult for himself or on behalf of a minor or to a minor, can also be purchased jointly by two adults
National Savings Certificate (VIII issue)	8% Interest compounded six monthly but payable at maturity. Rs. 100/- grows to Rs 160.10 after 6 years.	Minimum Rs. 100/- No maximum limit available in denominations of Rs. 100/-, 500/-, 1000/-, 5000/- & Rs. 10,000/-.	A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor. Deposits quality for tax rebate under Sec. 80C of IT Act. The interest accruing annually but deemed to be reinvested will also qualify for deduction under Section 80C of IT Act.
Senior Citizens Savings Scheme	9% per annum, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December	There shall be only one deposit in the account in multiple of Rs.1000/- maximum not exceeding rupees fifteen lakh.	Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse. Age should be 60 years or more, and 55 years or more but less than 60 years who has retired on superannuation or otherwise on the date of opening of account subject 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 Rs.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.