Post office savings schemes

Post Office Savings Account

  • The minimum amount for an opening INR. 20
  • The rate of interest 4.0% annually on individual/joint accounts.
  • 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 on an existing account also.
  • Interest earned is Tax-Free up to INR. 10,000 per year from the financial year 2012-13.
  • At least one transaction of deposit or withdrawal in the three financial years is necessary to keep the account active
  • Account can be opened in the name of the minor and a minor of 10 years and above age can open and operate the account. Minor after attaining majority has to apply for conversion of the account in his name.

5 Year Post Office Recurring Deposit Account (RD)

  • Minimum INR. 10 per month or any amount in multiples of INR. 5. No maximum limit to open an account.
  • From 01.01.2018, interest rates – 6.9% annually (quarterly compounded)
  • On maturity INR. 10 account fetches INR 717.43. Can be continued for another 5 years on year to year basis.
  • If a subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, the default fee of INR. 0.05 for every 5 rupees 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 the monthly default amount, the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current monthly deposit. This will be applicable to both CBS and non-CBS Post offices.
  • One withdrawal up to 50% of the balance allowed after one year. It may be repaid in one lump sum along with interest at the prescribed rate at any time during the currency of the account ​

Post Office Time Deposit Account (TD)

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

Interest payable annually but calculated quarterly.

From 01.01.2018, interest rates are as follows: –

Period – year               Rate %

Year 1                            6.6

Year 2                            6.7

Year 3                            6.9

Year 4                            7.4

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. The 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 01.04.2007.

Post Office Monthly Income Scheme Account (MIS)

  • The minimum amount for account opening and maximum balance that can be retained: In multiples of INR. 1500
  • The maximum investment limit is INR. 4.5 lakh in a single account and INR. 9 lakh in a joint account An individual can invest maximum INR 4.5 lakh in MIS (including his share in joint accounts). For calculation of share of an individual in a joint account, each joint holder have the equal share in each joint account
  • From 01.01.2018, interest rates – 7.3% annually, payable monthly.
  • Maturity period is 5 years from 01.12.2011
  • In case of MIS accounts standing in CBS Post offices, monthly interest can be credited to 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 a deduction from the deposit.)
  • A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 08.12.2007 and up to 30.11.2011. No bonus is payable on the deposits made on or after 01.12.2011.

(Core banking refers to a centralized system established by a bank which allows its customers to conduct their business irrespective of the bank’s branch. Today banking system grown tremendously under a wide umbrella and transformed and removes the impediments of Geo-specific transactions. In fact, CORE is an acronym for “Centralized Online Real-time Exchange”, thus the bank’s branches can access applications from centralized data centers.)

Senior Citizen Saving Scheme (SCSS)

  • Minimum amount: Only one deposit in the account in multiple of INR. 1000 maximum not exceeding INR. 15 Lakhs
  • From 01.07.2017, interest rates – 8.3% annually, payable from the date of deposit of 31st March/30th Sept/31st December in the first instance and thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.
  • 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 have retired on superannuation or under VRS (Voluntary Retirement Service) can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and the amount should not exceed the cash of retirement benefits.
  • Maturity – 5 Years.
  • The account can be opened by cash for the amount below INR. 1 Lakh and for INR. 1 Lakh and above by cheque only.
  • Premature closure is allowed after one year on deduction of an amount equal to 1.5% of the deposit and after 2 years 1% of the deposit.
  • After maturity, the account can be extended for a further three years within one year of the maturity by giving an application in prescribed format. In such cases, the account can be closed at any time after the 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 01.04.2007

15 Year Public Provident Fund Account

  • Minimum INR. 500 Maximum INR. 1,50,000 in a financial year. Deposits can be made in lump sum or in 12 installments.
  • From 01.01.2018, interest rates – 7.6% annually (compounded yearly).
  • An individual can open an account with INR. 100 but has to deposit a minimum of INR. 500 in a financial year and maximum INR. 1,50,000
  • The maturity period is 15 years, but the same can be extended within one year of maturity for a further 5 years and so on.
  • The premature closure will not be allowed before 15 years.
  • Deposits qualify for deduction from income under Sec. 80C of IT Act.
  • Interest is completely tax-free.

National Savings Certificate (VIII Issue)

  • Minimum of INR. 100 and in multiples of INR. 100. No Maximum Limit.
  • From 01.01.2018, interest rates – 7.6% compounded annually, but payable at maturity. INR. 100 grows to INR. 144.23 after 5 years.
  • 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 the date of maturity.
  • At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of the 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 the post office.

Kisan Vikas Patra

  • Minimum of INR. 1000 and in multiples of INR. 1000. No Maximum Limit.
  • From 01.01.2018, interest rates – 7.3% compounded annually and Amount Invested doubles in 118 months (9 years and 10 months).
  • KVP can be purchased from any Departmental Post office.
  • The certificate can be en-cashed after 2 and 1/2 years from the date of issue.
  • The Certificate can be transferred from one person to another and from one post office to another.
  • The Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.

Sukanya Samriddhi Accounts

  • Minimum INR. 1000/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposits in multiple of INR 100/- or lump-sum deposits. No limit on number of deposits.
  • ​​Rate of interest – 8.1% P.A. with effect from​ 1-01​-2018​​ – compounded annually.
  • A legal guardian/natural guardian can open accounts in the name of the girl child (maximum two accounts in the name of two different girl children).
  • If minimum Rs 1000/- is not deposited in a financial year, the account will become discontinued and can be revived with a penalty of Rs 50/- per year with a minimum amount required for deposit for that year.
  • Partial withdrawal, maximum up to 50% of the 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.
  • Account can be opened up to the 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 an account up to 1.12.2015

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