Interests Payable, Rates, Periodicity etc.
Denominations & Investment Limits
POST OFFICESAVINGS ACCOUNT
4% Per annum on individual/Joint accounts.
Minimum Rs 50/- (Rs 500/- for cheque account). From 01 Dec 2011, there will be no limit for retaining balance in single as well as joint savings account. A depositor or depositor(s) can deposit any amount into single as well as joint savings account.
Interest rate applicable w.e.f. 01 Dec 2011 is 4 per cent / annum for general public. From the FY 2011-12, Interest income of Rs 3500/- in case of Single account and Rs 7000/- in case of Joint account will be exempted from Income Tax. Cheque facility is also available. Cheque are also accepted by Scheduled Banks. Deposits/ withdrawals at FPOs other than the FPO where account stand permitted.
FIVE YEAR POST OFFICE RECURRING DEPOSIT ACCOUNT
Rs 10/- account fetches Rs 746.51 on maturity. Account can be continued for another 5 years on year-to-year basis. (Upto Rs 50/- denomination covered under Protected Savings Schemes. Conditions will apply)
Minimum Rs 10/- per month or any amount in multiples of Rs 5/-. No maximum limit.
POST OFFICE TIME DEPOSIT ACCOUNT
Interest payable annually but calculated at quarterly compounding basis.Period rates:-1 yrs - 8.2%2 yrs - 8.3%3 yrs - 8.4%5 yrs - 8.5% Account may be opened by an individual
Minimum Rs 200/- and in multiple of Rs 200/- thereof.
2, 3 and 5 years account can be enchased after one year at a discount. Can be closed after 6 months without interest.
POST OFFICE MONTHLY INCOME SCHEME
Maturity period is 5 year. 8.5% per annum payable monthly. For example Rs 85/- will be paid every month on a deposit of Rs 12000/-(Premature closure allowed after expiry of 1yr subject to certain conditions.
Minimum Rs 1500/- or multiple thereof. Maximum Rs 4.5 Lakhs in single account and Rs 9 Lakhs in joint account.
Bonus to be discontinued wef 01 Dec 2011.
SENIOR CITIZENS SAVINGS SCHEME
9.3% interest per annum. Payable Quarterly. Retired personnel of Defence Services are eligible to subscribe under the scheme irrespective of age.Deposits to be made within one month from the date of drawl of pensionary benefits
Entire pensionary benefits in multiple of Rs 1000/- not exceeding Rs 15 Lakhs.
Maturity period is 5 years. Can be prematurely encashed after 1 year at 1.5% discount. 1% deduction if the account is closed after 2 years. Can be extended for a further period of 3 years. Interest can be credited to depositors savings bank when due.Fee for transfer from one PO to another is Rs 5/- per lakhs for 1st transfer and Rs 10/- per lakhs for subsequent transfers. TDS and surcharge is recovered at source at prescribed rates.
All payments for Rs 20000/- or more will be by cheque only