POST OFFICE SAVINGS SCHEMES - A READY RECKONER S. No. Investment type Eligibility restriction?

Period Rate of Interest as Payout frequency Minimum Investment for financial year 2014-15 8.5% compounded Maturity Rs. 100 half yearly Maximum investment limit No max limit Tax deduction on investment? (Yes/No) Yes - under Section 80C Taxability- Interest Taxability- Maturity Amount Allowed? Pre-mature withdrawal Penalty? Allowed? Loan Interest rate? Other features

National Savings Certificate (NSC) VIII issue

NIL

5 years

Interest accrued is taxable each year and you can also claim rebate u/s 80C

No

Can be withdrawn after 3 years subject to the rules

No penalty, however, withdrawal is at reduced rates No penalty, however, withdrawal is at reduced rates No

No

NA

A/C can be opened by an individual, minor or on behalf of a minor.

National Savings NIL Certificate (NSC) - IX issue Public Provident Only Individuals can Fund (PPF) invest (not HUF)

10 years

8.8% compounded Maturity half yearly 8.7% (monthly interest credited yearly) 8.4% p.a. (compounding not applicable) Maturity

Rs. 100

No max limit

Yes - under Section 80C

Monthly Income Scheme

NIL

15 years (effective 16 years)+ extension of 5 years block 5 years

Monthly

Rs. 5 but there should Rs. 1,00,000 per year per Yes - under Section 80C be a deposit minimum person of Rs. 500 in a financial year Single A/c- Rs. 4.5 lacs/ No joint A/c- Rs. 9 lacs

Accrued interest each year is No taxable and also allowed u/s 80C Exempt No

Can be withdrawn after 3 years subject to the rules Yes, from 7th financial year from the year of a/c opening

No

NA

A/C can be opened by an individual, minor or on behalf of a minor. 2% read our complete post on Public Provident fund here: http://sohamfp.com/public-provident-fund/

Loans are allowed from 3rd 5th financial year

Taxable

No

Yes (after expiry of 1 year)

1-3 years: 2%, More than 3 years= 1%

No

NA

Joint account allowed Nomination allowed Transferable account from 1 post office to another post office Conversion of single to joint and vice versa allowed One transaction of deposit or withdrawl necessary in 3 years A/c can be opened in name of minor Minor of 10 years and above can open and operate an a/c Any number of a/c can be opened in one post office subject to maximum investment limit by adding balance in all accounts. Interest can be obtained through auto credit into savings account through PDCs or ECS Joint account allowed Nomination allowed Transferable account from 1 PO to another Conversion of single to joint and vice versa allowed. One transaction of deposit or withdrawl necessary in 3 years. A/c can be opened in name of minor. Minor of 10 years and above can open and operate an a/c. After 4 continious defaults in deposit, the a/c will become discontinue and can be revived within 2 months. If not revived, no further deposit can be made in account. Rebate on advance deposit of at least 6 installments. Any number of a/c can be opened in one post office.

Recurring Deposit

NIL

5 years - can be extended every year (upto max. 5 years)

8.40% p.a. (compounded quarterly)

Maturity

Rs. 10 per month or any No Limit amount in multiples of Rs 5

No

Taxable

No

Yes (one withdrawal after 1 NIL year - upto 50% of balance as on that date)

No

NA

Time Deposit

NIL

1/2/3/5 years

1 year- 8.40%; 2 year- 8.40%; 3 year- 8.40%; 5 year- 8.50% (compounded quarterly)

Annually

Rs 200 and in multiples No Limit thereof.

Yes - only 5yr TD scheme qualifies for a tax deduction u/s 80C

Taxable

No

After 6 months

Money paid out will be at the rate of interest as reduced by 2%

Yes

Joint account allowed Nomination allowed Transferable account from 1 PO to another Conversion of single to joint and vice versa allowed. A/c can be opened in name of minor. Minor of 10 years and above can open and operate an a/c. Any number of a/c can be opened in one post office. 2,3 & 5 year a/c can be closed after 1 year at discount. A/c can also be closed after six months but before one year with interest @post office savings account.

Savings Bank account

NIL

Running a/c

4% p.a. For Single Running a/c / Joint accounts

Rs 20

Single A/c- Rs. 1 lac/ Joint A/c- Rs. 2 lacs

No

Exempt upto Rs. 3500 for No single account and Rs. 7000 for joint account

Not applicable - as it is a running account

NA

NA

NA

Joint account allowed, Nomination allowed, A/c can be transfered from one PO to another Conversion of single to joint and vice versa allowed. One transaction of deposit or withdrawl necessary in 3 years. A/c can be opened in name of minor. Minor of 10 years and above can open and operate an a/c. One a/c can be opened in one post office. Joint a/c can be opend with spouse only and first depositor will be the investor. Transferable a/c from one post office to another. The a/c is closed if the person dies without nominating spouse as nominee. If spouse is nominee, she can continue account even being at age below 60 years. Any number of a/c can be opened in one post office subject to maximum investment limit by adding balance in all a/c's. Interest can be obtained through auto credit into savings account through PDCs or ECS. TDS will be deducted if interest is > Rs. 10K p.a.

Senior Citizen Savings Scheme (SCSS)

Individual must have completed 60 years/ 55 years in case of retirement NRIs and HUF cannot invest

5 years (one time extension allowed for 3 years)

9.2% p.a.

Quarterly

Rs. 1000

Rs. 15 lacs

Yes, under Section 80C of Income Tax Act

Taxable

No

Yes (after expiry of 1 year)

Between 1-2 years - 1.5% After 2 years - 1%