Post Office Savings Schemes Recurring Deposit

Any individual  (a single adult or two adults jointly) can open an account.      Group Accounts, Institutional Accounts and Misc. account not permissible.     Trust, Regimental Fund or Welfare Fund not permissible to invest.      1 Year, 2 Year, 3 Year and 5 Year TD can be opened.      2, 3 & 5 Year TD Accounts can be closed after one year at a discount.      Rate of interest - 6.25%, 6.50%, 7.25%, 7.5% compounded quarterly for 1,2,3 &5 years TD account respectively    Type of Account Minimum Deposit Maximum Deposit 1,2,3 & 5 Year TD Rs.200/- and in multiples of Rs. 200/- thereafter No limit.

POST SCHEMES

 

Post Office Savings Schemes

Scheme Interest (%) Minimum  Investment (Rs.) Maximum  Investment (Rs) Features Tax Breaks National Savings Certificate 8.00a 100 No limit 6-year tenure Section 80C benefit Public Provident Fund 8.00b 500 70,000 15-year term; tax-free returns Section 80C benefit Kisan Vikas Patra 8.41b 100 No limit Money doubles in 8 years, 7 months No tax benefit Monthly Income Scheme 8.00 1,500 Single A/c: 4.5 lakhs Joint A/c: 9 lakhs 6-year tenure; monthly returns; 5% Bonus on Maturity No tax benefit   Time Deposits 6.25-7.50 200 No limit Available for 1, 2, 3, 5 years No tax benefit Recurring Deposits 7.50c 10 No limit 5-year tenure No tax benefit Senior Citizens Saving Scheme 9.00d 1,000 15 lakhs 5 year tenure; minimum age 55; also available with public sector banks No tax benefit Savings Bank Account 3.5   Single A/c: 1 lakh Joint A/c: 2 lakhs Any individual can open an account; Cheque facility available. No tax benefit Sec 80C benefit: Investments up to Rs 1 lakh in specified securities (maximum of Rs 70,000 in PPF) qualify for deduction Compounded half-yearly Compounded yearly Compounded quarterly Payable quarterly

Senior Citizens Savings Scheme (SCSS)

A new avenue of investment and return for Senior Citizen.      The account may be opened by an individual,             Who has attained age of 60 years or above on the date of opening of the account.              Who has attained the age 55 years or more but less than 60 years and has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account   within three months from the date of retirement.             No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.      The account may be opened in individual capacity or jointly with spouse.      Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.      The individual may open one or more account in the multiple of Rs.1000/-, subject to a maximum limit of Rs.15 lakh. Further, more than one account cannot be opened in the same post office during a calendar month.       No withdrawal shall be permitted before the expiry of a period of five years from the date of opening of the account. The depositor may extend the account for a further period of 3 years.      Premature closure of account is permitted          After one year but before 2 years on deduction of 1 ½ % of the deposit.          After 2 years but before date of maturity on deduction of 1% of the     deposit.      In case of death of the depositor before maturity, the account shall be closed and deposit refunded  without any deduction along with interest.      Interest @ 9% per annum from the date of deposit on quarterly basis. Interest can be automatically credited to savings account provided both the accounts stand in the same post office.      Interest rounded off to the nearest multiple of rupee one.     Post Maturity Interest at the rate applicable to the deposits under Post Office Savings Accounts from time to time is admissible for the period beyond maturity.       Nomination facility is available in the Scheme.      No Income-tax/Wealth Tax rebate and/or exemption is admissible under the scheme.            Monthly Income Scheme (MIS) and Senior Citizen Saving Scheme (SCSS) are the best for Senior Citizens who desire monthly/quarterly interest. Invest in MIS / SCSS and transfer interest into RD account through SB account through written request and earn a combined interest of 10.5 % (approx.).           This is the safest investment option for the Senior Citizens.

National Savings Certificate

Interest Rate

Period during which purchased		Maturity Value for a Denomination of      Rs.100.00
From	To
01.01.1999	14.01.2000	Rs.195.60
15.01.2000	28.02.2001	Rs.190.12
01.03.2001	28.02.2002	Rs.174.52
01.03.2002	28.02.2003	Rs.169.59
01.03.2003	onwards	Rs.160.10

 Features

One person can be nominated for certificates of denomination of Rs. 100- and   

     more  than one person can be nominated for higher denominations.  

  Maturity period is 6 years.  No premature encashment is permitted in the normal course.   

PREMATURE ENCASHMENT under sub-rule (1) of rule 16 after the expiry of  three years from the date of purchase of certificate.  Table below for a certificate of Rs.100 denomination and at a proportionate rate for a certificate of any other denomination.

Table

Period from the date of the certificate to the date of its encashment.	Issued  from 01.03.2001 to 28.02.2002	Issued  from 01.03.2002 to 28.02.2003	01.03.2003 onwards
Three years or more, but less than three years and six months	126.43	124.62	121.15
Three years and six months or more, but less than four years.	131.71	129.51	125.09
Four years or more, but less than four years and six months.	136.90	134.29	129.16
Four years and six months or more, but less than five years.	142.48	139.43	133.36
Five years or more, but less than five years and six months.	147.98	144.46	137.69
Five years and six months or more, but less than six years	153.89	149.83	142.16

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5 Year Recurring Deposit (RD)

Interest Rates

Maturity value from time to time (for denomination of Rs.10/):

Period during which opened		Amount repayable for an account of  Rs. 10/- denomination
From	To
01.10.1991	01.09.1993	856.40
02.09.1993	31.12.1998	833.40
01.01.1999	14.01.2000	811.15
15.01.2000	28.02.2001	789.60
01.03.2001	28.02.2002	758.53
01.03.2002	28.02.2003	748.49
01.03.2003	onwards	728.49

Features

  Minimum amount of Deposit is Rs.10.  No maximum limit. Deposit should be made every month within the

     calendar month.  Default fee is chargeable for delayed deposit at 

     0.20 P. per month of delay, for Rs.10 Dn.  

  Maximum defaults allowed in an account is four (4).  After four defaults the         account is treated as

     'discontinued'.   Discontinued account can be revived by paying defaulted deposits, within two months 

      from the fifth default.  If it is not so revived, the account cannot be continued.

For advance deposits, including deposit for current month, rebate is allowed  at the rate:

   Denomination Rs.10.         6 advance deposits…….Re.1/-

                                                      12 advance deposits:             4/-

Premature closure is permitted on completion of 3 years from the date of opening.  Interest is to be

    calculated as per the rules and rate applicable to individual savings account. at the rate applicable to

    savings account from time to time is calculated and paid.

  One withdrawal is permitted from the account on completion of one year from the date of opening, on

     the   conditions that:

       i.                   At least 12 deposits should have been made

     ii.                 Account should not have been discontinued one.

     iii.               Amount not exceeding 50% of the balance.

     iv.               Withdrawal may be repaid in one lump or in equal monthly installments.

     v.                 Interest is charged at  15%.

  After maturity of the account, it can be continued for a further period of 5 years with or without further

     deposits.  During this extended period, the account can be closed at any time.  Post maturity interest is

     paid at the  prescribed rate.

Under the protected savings scheme, on the death of depositor before maturity of the account, the

     legal heir  is entitled to get full maturity value, subject to the conditions:

       i.     Age of the depositor at the time of opening should be between 18 and 53

      ii.    Benefit limited to the maturity value of Rs.50 denomination

      iii.  Account should not have been discontinued as on the date of death

      iv.  At least two years should have been completed

      v.   At least 24 deposits should have been made.  

      vi.  For the first 24 months no default should be outstanding.

      vii. No withdrawal should have been taken during the first  24 months. 

   Interest earned  is exempted as per Section 80L of Income Tax Act.

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15 Years Public Provident Fund Interest Rates

Period during which opened Minimum Amount of Deposit in a year (in Rs) Maximum Amount of Deposit in a year (in Rs.) Rate of Interest From To 01.04.1986 14.01.2000 100 60,000 12.0 % 15.01.2000 28.02.2001 100 60,000 11.0 % 01.03.2001 28.02.2002 100 60,000 9.5 % 01.03.2002 14.11.2002 100 60,000 9.0 % 15.11.2002 28.03.2003   500 70,000 9.0 % 01.03.2003 onwards 500 70,000 8.0 %

Features

Only one account can be opened in the name of a person.  Twelve deposits can be made in a financial year. Minimum deposits in a year is Rs.500 and maximum is Rs. 70,000/-. Loan is admissible from the third year. Loan amount is limited to 25 % of    at the end of two years preceding.     Fresh loan is not allowed when previous loan or interest thereof is outstanding. Interest is charged at the rate of 1% if prepaid within 36 months and at 6% on the outstanding loan after 36 months. Withdrawal is permissible from seventh financial year from the year of opening, limited to one in a financial year.  Amount of withdrawal is limited to 50 % of balance at the end of the fourth preceding year less amount of outstanding loan or 50% of balance at the end of immediate preceding year of withdrawal less amount of outstanding loan, if any whichever is less.   A subscriber can close the account in the 16th financial year.  The account can also be continued with or without subscription, for further blocks of 5 years. Deposits are qualified for Income Tax rebate under section 88 of Income Tax Act. Deposits completely exempted from wealth tax. Interest is completely tax free under section 80 of IncomeTax Act.

Frequently Asked Questions (FAQ) on Banking

1. How can I claim payment of deceased account / certificate holder

2. How to transfer accounts and certificates?

3. How to open an account in post office and its requirements?

4. What is silent account and how to revive it?

5. What are late payment fees for recurring deposits?

6. What is the procedure for the issue of duplicate certificates?

7. How I get duplicate passbook?

8. What are the norms for issuing a Cheque Books?

9. What are the service charges for outstations cheque?

10.Can Monthly Income Scheme (MIS) interest be credited to RecurringDeposit (RD) account?

11.What is the minimum balance required for an account?

12.How I can get encashment of certificates / account before maturity?

1. 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 alongwith 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 lakh cane be settled. If the claim is exceeding one lakh, claims can be settled by legal evidence ie, by probate of will or succession certificate.

2. How to transfer accounts and certificate? For transfer of accounts- the depositor should apply in the prescribed form[lSB10(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.

3. 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.

4. 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 Rs. 20/- will be debited towards service charges.

5. What are late payment fees for recurring deposits? The monthly deposits should be credited on any day of the month. If the monthly instalment is not credited for any particular month, then it becomes a default. The defaulted months can be credited subsequently (for Rs. 10/- denomination, 0.20 paise for each month of default) maximum 4 defaults are allowed.

6. What is the procedure for the issue of duplicate certificates? The investor should apply in the prescribed form for duplicate certificate om 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.

7. 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.

8. What are the norms for issuing a Cheque Books? Cheque books are issued in respect of cheque accounts In cheque accounts, minimum balance should be Rs. 500/-

9. What are the service charges for outstations cheque? Cheque realisation charges for outstation cheques. Rs. 30/- for first thousand or part Rs. 31/- for each additional thousand or part In case of bouncing of cheque Rs. 50/- is charges as service charge.

10.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.

11.What is the minimum balance required for an account? Minimum balances in respect of different types of account is given below. SB(cheque account) Rs. 500/- SB(non cheque account) Rs. 50/- MIS Rs. 1000/- TD Rs. 200/- PPF Rs. 500/- Senior Citizen Rs. 1000/-

12.How I can get encashment of certificates / account before maturity?   NSCs No premature encashment possible. Lock up period is six years KVPS Premature encashment is possible after 2 years 6 months. Proportionate amount as per the table is payable Different Savings Accounts 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