Financial Services The Financial service offered by Post office includes Savings and Postal Life Insurance (PLI)

/ Rural Postal Life Insurance (RPLI). The Post Office small savings scheme provides a secure, risk free and attractive investment option for the small investors and offers the savings products across its 155000 Post offices. The Post Office savings bank is the oldest and by far the largest banking system in the country, serving the investment need of both urban and rural clientele. These services are offered as an agency service for the Ministry of Finance, Government of India. Several products on offer serve various investment requirements of the customers.

Savings Bank account (SB): Serves the need of regular deposits and withdrawals. Cheque facility is also available.

Recurring Deposit account (RD): Offers a monthly investment option with a handsome return at the end of five years with option to extend the account period. Insurance cover facility is also available with some conditions.

Monthly Income Scheme (MIS): offers a fixed investment option for five years with monthly interest payment facility. The facility of automatic credit of interest to SB account available.

Public Provident Fund (PPF): Offers intermittent deposits subject to certain limits for a 15 year period coupled with income tax exemptions subject to certain conditions, on the investment. Loan and withdrawal facilities also available.

Time Deposit (TD): Fixed deposit option for periods ranging from one, two, three to five years with facility to draw yearly interest offered at compounded rates. Automatic credit facility of interest to SB account.

Senior Citizens Savings Scheme (SCSS): Offers fixed investment option for senior citizens for a period of five years, which can be extended, at a higher rate of interest that are paid in quarterly installments.

National savings certificates (NSC) (VIII) issue: with a fixed investment for 5 years on certificates of varied denominations. Pledging facility available for availing loan from Banks.

National Savings certificates (IX) issue: Fixed investment tenure of 10 years. Post Office also offers Insurance product through Postal Life Insurance (PLI) and Rural Postal Life Insurance (RPLI) schemes with low premium and high bonus. Postal Life Insurance (PLI) Eligibility: All Government servants and employees of Government aided institutions with certain conditions. Whole Life Assurance (Suraksha) Endowment Assurance (Santhosh) Convertible Whole Life Assurance (Suvidha) Joint Life Insurance (Yugalasuraksha) Anticipated Endowment Assurance (Sumangala) Childrens Policy Rural Postal Life Insurance (RPLI) Eligibility: For people residing in rural areas. Whole Life Insurance (Grama Suraksha) Endowment Assurance (Grama Santhosh) Convertible Whole Life (Grama Suvidha) Anticipated Endowment (Grama Sumangala) 10 year Rural PLI (Grama Priya Children Policy

Interest payable, Scheme Rates, Periodicity etc. 4.0% per annum on individual/ joint Post Office Savings Account accounts. Minimum INR 50/-. Investment limits and Denominations

Salient features including Tax Rebate Cheque facility available. Interest Tax Free. One withdrawal upto 50% of the balance allowed after one year. Full

Rate

of

interest

maturity value allowed on R.D. Accounts restricted to that of INR. 50/denomination in case of death of depositor subject Minimum INR 10/per to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebate. Account may be opened individual. by The

8.40%. Maturity value of a 5 Years RD account opened on or after 1.4.2012 with monthly deposit of INR.10/- shall be INR.746.51. Can be continued for another 5-Year Post Office Recurring 5 years on year to year basis.

month or any amount in multiples of INR 5/-. No maximum limit.

Deposit Account Interest payable

annually but calculated quarterly. Period 1 yr. A/c 2 yr. A/c 3 yr. A/c 5 yr. A/c Post Office Time Deposit Account Rate 8.20% 8.30% 8.40% 8.50% Minimum INR 200/- and in multiples thereof. No maximum limit.. Minimum INR 200/- and in multiples thereof. No maximum limit.

investment in the case of 5 years TD qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007. Maturity period is 5 years. Can be prematurely encashed one year some conditions. Bonus admissible after with No is on

w.e.f. 01.04.2012

8.50% Post Office Monthly Income Account Scheme annum 01.04.2012

per w.e.f.

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

maturity in respect of MIS accounts opened on or after 01.12.2011.

Deposits

qualify

for deduction from income under Sec. 80C of Interest IT Act. is

completely taxfree. Withdrawal is permissible every year from 7th financial Loan Minimum INR. 500/Maximum INR. 1,00,000/- in 15 year Public Provident Fund 8.80% per annum w.e.f. 01.04.2012 a financial year. Deposits can be made in lumpsum or in 12 installments. year. facility

available from 3rd Financial year. No attachment under court decree order. A single holder type certificate can be purchased by an adult himself or for on

Account

behalf of a minor or to a minor. Deposits for tax qualify rebate

under Sec. 80C of IT Act. Rate of interest 8.60%. Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012 shall be INR. 152.35 National Savings Certificate (VIII Issue) after 5 years. Minimum INR. 100/No 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 Rate of a of interest of Minimum INR. 100/No 8.90%. Maturity value certificate INR.100/- purchased on or after 1.4.2012 National Issue) Savings Certificate (IX shall be INR. 238.87 after 10 years. maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-. Interest on these certificates shall be liable to tax adult or a for on himself or to

maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.

behalf of a minor minor.

under the IncomeTax Act, 1961 (43 of 1961, on the basis accrual tax of annual specified shall at be the

in rule15, but no deducted

time of payment of discharge value. Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse. should be Age 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 9.30% 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 Senior Citizen Savings Scheme December. There shall be only one deposit in the account in multiple of INR.1000/maximum not exceeding rupees fifteen lakh. account in multiple of INR.1000/maximum not exceeding rupees fifteen lakh. benefits. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest. TDS is deducted at source interest if on the

interest amount is more than INR 10,000/- p.a. The

investment under this qualify scheme for the

benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Savings Account

Any individual can open an account. Cheque facility available. Group Account, Institutional Account, other Accounts like Security Deposit account & Official Capacity account are not permissible

Recurring Deposit Account Any individual (a single adult or two adults jointly) can open an account.

Advance Deposits earn rebate. Four defaults are allowed. Rate of interest 8.40% Maturity value of a 5 Years RD account opened on or after 1.4.2012 with monthly deposit of INR.10/- shall be INR.746.51.

Defaults can be paid within two months. Part withdrawal facility available. Premature closure allowed after three years. Pay Roll Savings Scheme is also available for employees of various Establishments. Type of Account Minimum Deposit INR. 10/- and in multiples Individual Account of INR. 5/- thereafter No limit. Maximum Deposit

Monthly Income Scheme (MIS) Account

Safe & sure way to get a regular monthly income. Specially suited for retired employees/ Senior Citizens or any one with high sum for investment.

Rate of interest 8.50%. Maturity Period - Five Years. No Bonus on Maturity w.e.f. 01.12.2011. Auto credit facility to SB Account. Type of Account Single Joint Minimum limit INR 1500/INR 1500/Maximum limit INR 4.5 lakhs INR 9 lakhs

Above scheme operates automatically, if you open a saving bank account and give a request for automatic transfer of Monthly Income Scheme interest to Recurring Deposit through Saving Bank account.

Public Provident Fund Account

Ideal investment option for both salaried as well as self employed classes. Non-Resident Indians (NRIs) are not eligible. Investment up to INR. 1,00,000 per annum qualifies for IT Rebate under section 80 C of IT Act.

The rate of interest on the subscriptions made to the fund on or after 01.12.2011 and balances at credit of the subscriber in the existing PPF account shall bear interest at the rate of eight point eight per cent (8.80%) per annum.

Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a.

shall continue to be charged on the loans already taken or taken up to 30.11.2011.

Withdrawal permitted from 6th financial year. Free from court attachment. An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons. Type of Account Public Provident Fund(Individual account on his behalf or on behalf of minor of whom he is the guardian) INR. 500/- in a financial INR. 1,00,000/- in a year financial year Minimum limit Maximum limit

National Savings Certificates (NSC) NSC VIII Issue Scheme specially designed for Government employees, Businessmen and other salaried classes who are Income Tax assesses.

No maximum limit for investment. No Tax deduction at source. Certificates can be kept as collateral security to get loan from banks. Investment up to INR 1,00,000/- per annum qualifies for IT Rebate under section 80C of Income Tax Act.

Trust and HUF cannot invest. Rate of interest 8.60%. Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012 shall be INR. 152.35 after 5 years.

NSC IX Issue No maximum limit for investment.

INR. 100/- grows to INR 234.35 after 10 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.

Rate of interest 8.90%. Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012 shall be INR. 238.87 after 10 years. Buy National Savings Certificates (NSCs) every month for Five years Reinvest on maturity and relax - On retirement it will fetch you monthly pension as the NSC matures.

Senior Citizen Savings Scheme (SCSS) Account

A new avenue of investment and return for Senior Citizen. The account may be opened by an individual, 1. Who has attained age of 60 years or above on the date of opening of the account. 2. 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. 3. 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 INR.1000/-, subject to a maximum limit of INR.15 lakh.

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 1. After one year but before 2 years on deduction of 1 % of the deposit. 2. After 2 years but before date of maturity on deduction of 1% of the deposit.

Premature closure allowed after three years. In case of death of the depositor before maturity, the account shall be closed and deposit refunded without any deduction along with interest.

Interest @ 9.30% 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. The investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

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.