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Interest not withdrawn does not carry any interest.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.