Scheme

Interest payable, Rates, Periodicity etc.

Investment limits and Denominations

Salient features including Tax Rebate

PostOffice Savings Account

4.0% per annum on individual/ joint accounts.

Minimum INR 50/-.

Cheque facility available.  Interest Tax Free.

5-YearPost Office Recurring Deposit Account

On maturity INR 10/- account fetches INR 738.62/-. 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.

One withdrawal upto 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. 6 & 12 months advance deposits earn rebate.

PostOffice Time Deposit Account

Interest payable annually but calculated quarterly.

Period          Rate

1 yr. A/c      7.70%

2 yr. A/c      7.80%

3 yr. A/c      8.00%

5 yr. A/c      8.30%

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

Account may be opened by individual.   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 Scheme

8.2% per annum   w.e.f. 01.12.2011

In multiples of INR 1500/- Maximum INR 4.5 lakhs in single account and INR 9 lakhs in joint account.

Maturity period is 5 years. Can be prematurely encashed after one year with certain conditions No Bonus   is admissible on maturity in respect of MIS accounts opened on or after 01.12.2011.

15year Public Provident Fund Account

8.6% per annum w.e.f. 01.12.2011

Minimum INR. 500/- Maximum INR. 1,00,000/- 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.

National Savings Certificate (VIII issue)

INR. 100/- grows to INR 150.90 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 to a minor. Deposits qualify 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.

A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor.

Interest on these certificates shall be liable to tax under the Income-Tax Act, 1961 (43 of 1961, on the basis of annual accrual specified in rule15, but no tax shall be deducted at the time of payment of discharge value.

Senior Citizen 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 INR.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 INR 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.