It is an English Book: Post Office Saving Schemes

Saving Schemes

Post Office Savings Account

**Post Office Savings Account**
Interest payable, Rates, Periodicity etc.	Minimum Amount for opening of account and maximum balance that can be retained
4.0% per annum on individual / joint accounts	Minimum INR 20/- for opening
Salient features including Tax Rebate
Account can be opened by cash only Minimum balance to be maintained in a non-Cheque facility account is INR 50/- Cheque facility available if an account is opened with INR 500/- and for this purpose minimum balance of INR 500/-in an account is to be maintained Cheque facility can be taken in an existing account also Interest earned is Tax Free up to INR 10,000/- per year from financial year 2012-13 Nomination facility is available at the time of opening and also after opening of account Account can be transferred from one post office to another One account can be opened in one post office Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account Joint account can be opened by two or three adults At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active Single account can be converted into Joint and Vice Versa Minor after attaining majority has to apply for conversion of the account in his name Deposits and withdrawals can be done through any electronic mode in CBS Post offices. Inter Post office transactions can be done between CBS post offices ATM/Debit Cards can be issued to Savings Account holders( having prescribed minimum balance on the day of issue of card) of CBS Post offices.

5-Year Post Office Recurring Deposit Account (RD)

**5-Year Post Office Recurring Deposit Account (RD)**
Interest payable, Rates, Periodicity etc.	Minimum Amount for opening of account and maximum balance that can be retained
From 1.04.2017, interest rates are as follows:- 7.2% per annum (quarterly compounded) On maturity INR 10/- account fetches INR 723.14. Can be continued for another 5 years on year to year basis.	Minimum INR 10/- per month or any amount in multiples of INR 5/-. No maximum limit.
Salient features including Tax Rebate
Account can be opened by cash / Cheque and in case of Cheque the date of deposit shall be date of presentation of Cheque Nomination facility is available at the time of opening and also after opening of account Account can be transferred from one post office to another Any number of accounts can be opened in any post office Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account Joint account can be opened by two adults Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month. If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee @ 0.05 rs for every 5 rupee shall be charged. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made. *If in any RD account, there is monthly default amount , the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit. This will be applicable for both CBS and non CBS Post offices. There is rebate on advance deposit of at least 6 installments Single account can be converted into Joint and Vice Versa Minor after attaining majority has to apply for conversion of the account in his name One withdrawal up to 50% of the balance allowed after one year Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. In case of deposits made in RD accounts by Cheque, date of credit of Cheque into Government accounts shall be treated as date of deposit.

Post Office Time Deposit Account (TD)

Post Office Time Deposit Account (TD)

Interest payable, Rates, Periodicity etc.

Minimum Amount for opening of account and maximum balance that can be retained

Interest payable annually but calculated quarterly.
From 1.04.2017, interest rates are as follows:-

**Interest rates From 1.04.2017**
Period	Rate
1yr.A/c	6.9%
2yr.A/c	7.0%
3yr.A/c	7.2%
5yr.A/c	7.7%

Minimum INR 200/- and in multiple thereof. No maximum limit.

Salient features including Tax Rebate

Account may be opened by individual
Account can be opened by cash /Cheque and in case of Cheque the date of realization of Cheque in Govt. account shall be date of opening of account
Nomination facility is available at the time of opening and also after opening of account
Account can be transferred from one post office to another
Any number of accounts can be opened in any post office
Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account
Joint account can be opened by two adults.
Single account can be converted into Joint and Vice Versa
Minor after attaining majority has to apply for conversion of the account in his name
*In CBS Post offices ,when any TD account is matured, the same TD account will be automatically renewed for the period for which the account was initially opened . Example 2 Years TD account will be automatically renewed for 2 Years. Interest rate applicable on the day of maturity will be applied
The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Senior Citizen Savings Scheme (SCSS)

**Senior Citizen Savings Scheme (SCSS)**
Interest payable, Rates, Periodicity etc.	Minimum Amount for opening of account and maximum balance that can be retained
From 1.04.2017, interest rates are as follows:- 8.4% 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 INR.1000/- maximum not exceeding INR 15 lac.
Salient features including Tax Rebate
An individual of the Age of 60 years or more may open the account. An individual of the age of 55 years or more but less than 60 years who has retired on super annuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits. Maturity period is 5 years. A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife). Account can be opened by cash for the amount below INR 1 lac and for INR 1 Lac and above by Cheque only. In case of Cheque, the date of realization of Cheque in Govt. account shall be date of opening of account. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts. Joint account can be opened with spouse only and first depositor in Joint account is the investor. Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or Money Order. In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. It will be applicable at all CBS Post Offices. *Quarterly interest of SCSS accounts standing at CBS Post offices can be credited in any savings account standing at any other CBS post offices. Premature closure is allowed after one year on deduction of an amount equal to1.5% of the deposit & after 2 years 1% of the deposit. After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction. TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a. Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Post Office Monthly Income Scheme Account (MIS)

**Post Office Monthly Income Scheme Account (MIS)**
Interest payable, Rates, Periodicity etc.	Minimum Amount for opening of account and maximum balance that can be retained
From 1.04.2017, interest rates are as follows:- 7.6% per annum payable monthly.	In multiples of INR 1500/- Maximum investment limit is INR 4.5 lacs in single account and INR 9 lacs in joint account An individual can invest maximum INR 4.5 lac in MIS (including his share in joint accounts) For calculation of share of an individual in joint account, each joint holder have equal share in each joint account.
Salient features including Tax Rebate
Account may be opened by individual. Account can be opened by cash/Cheque and in case of Cheque the date of realization of Cheque in Govt. account shall be date of opening of account. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another. Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account. Joint account can be opened by two or three adults. All joint account holders have equal share in each joint account. Single account can be converted into Joint and Vice Versa. Minor after attaining majority has to apply for conversion of the account in his name. Maturity period is 5 years from 1.12.2011. Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or ECS./In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices. Can be prematurely en-cashed 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 and up to 30.11.2011. No bonus is payable on the deposits made on or after 1.12.2011.

15 year Public Provident Fund Account (PPF)

**15 year Public Provident Fund Account (PPF)**
Interest payable, Rates, Periodicity etc.	Minimum Amount for opening of account and maximum balance that can be retained
From 1.04.2017, interest rates are as follows:- 7.9% per annum (compounded yearly).	Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year. Deposits can be made in lump-sum or in 12 installments.
Salient features including Tax Rebate
An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial year and maximum INR 1,50,000/- Joint account cannot be opened. Account can be opened by cash / Cheque and In case of Cheque, the date of realization of Cheque in Govt. account shall be date of opening of account. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another. The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts. Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on. Maturity value can be retained without extension and without further deposits also. Premature closure is not allowed before 15 years. 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 from the year of opening account. Loan facility available from 3rd financial year. No attachment under court decree order. The PPF account can be opened in a Post Office which is Double handed and above.

National Savings Certificates (NSC)

**National Savings Certificates (NSC)**
Scheme	Interest payable, Rates, Periodicity etc.	Minimum Amount for opening of account and maximum balance that can be retained	Salient features including Tax Rebate
National Savings Certificates (NSC) 5 Years National Savings Certificate (VIII Issue)	From 1.04.2017, interest rates are as follows:- 7.9% compounded annually but payable at maturity. INR. 100/- grows to INR 146.93 after 5 years.	Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.	A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor. Deposits qualify for tax rebate under Sec. 80C of IT Act. The interest accruing annually but deemed to be reinvested under Section 80C of IT Act. In case of NSC VIII , transfer of certificates from one person to another can be done only once from date of issue to date of maturity. At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of old holder shall be rounded and name of new holder shall be written on the old certificate and on the purchase application(in case of non CBS Post offices) under dated signatures of the authorized Postmaster along with his designation stamp and date stamp of Post office.

Kisan Vikas Patra (KVP)

**Kisan Vikas Patra (KVP)**
Interest payable, Rates, Periodicity etc.	Minimum Amount for opening of account and maximum balance that can be retained
Amount Invested doubles in 113 months (9 years & 5 months)	Available in denominations of Rs 1,000, 5000, 10,000 and Rs 50,000. Minimum deposit Rs 1000/- and no maximum limit.
Salient features including Tax Rebate
Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults. KVP can be purchased from any Departmental Post office. Facility of nomination is available. Certificate can be transferred from one person to another and from one post office to another. Certificate can be en cash after 2 & 1/2 years from the date of issue. Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Sukanya Samriddhi Accounts

**Sukanya Samriddhi Accounts**
Interest payable, Rates, Periodicity etc.	Minimum Amount for opening of account and maximum balance that can be retained
Rate of interest 8.4% Per Annum(with effect from 1-04-2017),calculated on yearly basis ,Yearly compounded.	Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 100/- Deposits can be made in lump-sum No limit on number of deposits either in a month or in a Financial year
Salient features including Tax Rebate
A legal Guardian/Natural Guardian can open account in the name of Girl Child. A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children. Account can be opened up to age of 10 years only from the date of birth. For initial operations of Scheme, one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015. If minimum Rs 1000/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year. Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years. Account can be closed after completion of 21 years. Normal Premature closure will be allowed after completion of 18 years/provided that girl is married.

KYC Norms

FAQs on Banking:

How can I claim payment of deceased account / certificate holder?

The claimant may be the nominee or legal heir.
If there is nomination, the nominee can prefer the claim in the prescribed form along with death certificate.
If there is no nomination, any one of the legal heirs can prefer the claim in the prescribed form [SB84]. For this death certificate and consent statements of all legal heirs are required. Claim upto one lac can be settled.
If the claim is exceeding one lac, claims can be settled by legal evidence ie, by probate of will or succession certificate.
How to transfer accounts and certificate?

For transfer of accounts- the depositor should apply in the prescribed form SB10(b) or manual application. The application can be given either in transferring office or transferee office.
For transfer of certificates- the investor should apply in the prescribed form[NC32]. The application may be given in either of the offices.
How to open an account in post office and its requirements?

To open an account [Savings Bank(SB), Recurring Deposit(RD), Time Deposit(TD), Monthly Income Scheme(MIS) SB3, SB103 (pay-in-slip) and specimen signature slip for SB and TD are required.
For senior citizen accounts, separate forms are to be used. For SB account introduction is compulsory.
What is silent account and how to revive it?

When there is no transaction in an SB account continuously for 3 financial years, the account will be treated as silent account.
For revival, one application from the customer is required. LSG/HSG offices can revive the accounts independently. Remaining offices, HO will revive the accounts.
If the balance in the silent account is less than minimum, then INR. 20/- will be debited towards service charges.
What are late payment fees for recurring deposits?

The monthly deposits should be credited on any day of the month. If the monthly installment is not credited for any particular month, then it becomes a default. The defaulted months can be credited subsequently (for INR. 10/- denomination, 0.020 rs for each month of default) maximum 4 defaults are allowed.
What is the procedure for the issue of duplicate certificates?

The investor should apply in the prescribed form for duplicate certificate in respect of lost, stolen, destroyed, mutilated or defaced certificates (NC29).
The application shall be accompanied by a statement showing particulars of certificates and furnish an indemnity bond in the prescribed form with one or more sureties or with a bank guarantee is required.
In case of mutilated or defaced certificates, no indemnity bond is required.
How I get duplicate passbook?

Application in the prescribed form or manuscript application may be given by affixing prescribed fee in the form of postage stamp. New duplicated Passbook will be issued by sub post offices only.
What are the norms for issuing a Cheque Books?

Cheque books are issued in respect of Cheque accounts.
In a Cheque account, minimum balance should be INR. 500/-
What are the service charges for outstations Cheque?

Cheque realization charges for outstation Cheque.
INR. 30/- for first thousand or part
INR. 31/- for each additional thousand or part
In case of bouncing of Cheque INR. 50/- is charges as service charge.
Can Monthly Income Scheme (MIS) interest be credited to RecurringDeposit (RD) account?

No. There is no provision. Interest amount can be credited to SB account and after that from SB to RD is permissible.
What is the minimum balance required for an account?

Minimum balances in respect of different types of account is given below.

Minimum balances in respect of different types of account

SB(Cheque account) INR. 500/-

SB(non Cheque account) INR. 50/-

MIS INR. 1500/-

TD INR. 200/-

PPF INR. 500/-

Senior Citizen INR. 1000/-

**Minimum balances in respect of different types of account**
SB(Cheque account)	INR. 500/-
SB(non Cheque account)	INR. 50/-
MIS	INR. 1500/-
TD	INR. 200/-
PPF	INR. 500/-
Senior Citizen	INR. 1000/-

How I can get encasement of certificates / account before maturity?

Different Savings Accounts
NSCs (VIII Issue)	Maturity period 5 years (for certificates issued on or after .01.11.2011). No premature encasement possible.
SB	Can be closed at any time
RD	Premature closure permissible after 3 years - only SB rate is permissible
TD	Premature closure permissible after 6 months
MIS	Premature closure permissible after 1 year
Senior Citizen	Premature closure after 1 year