Interest Rate
Interest
payable annually but calculated on quarterly basis
(w.e.f.01.03.2003)
|
Account
|
Rates
of interest
|
| 1
year Account |
6.25
%
|
| 2
year Account |
6.5
%
|
| 3
year Account |
7.25
%
|
| 5
year Account |
7.5
%
|
Who can Open ?
Account
may be opened by an individual, i.e., Single,
Joint A/B (not more than two adults) Trust,
Regimental Fund and Welfare Fund.
Interest
is calculated on compounded quarterly basis and
payable annually. Investment
in this scheme is not exempted as per section 88 of
Income Tax.
Investment Limits &
Denominations
Minimum
Rs. 50/- and it's multiples.
No maximum limit.
Features
and Tax Rebate
Account may be opened by an individual, Trust,
Regimental Fund and Welfare Fund.
2, 3 and 5
year accounts can be closed after one year at a
discount.
Account
can be closed after 6 months but before 1 year
without interest.
The amount
of interest earned is tax free under Section 80-L of
Income Tax Act.
|
Time
Deposit