Small Savings - Objectives

1) To inculcate the habit of thrift among the people and provide not only security but also
fair return for the savings.
2) To encounter inflationary pressures on the economy. Thus helps to hold the price line.
3) To channalize the savings of the people in to the developmental programs of the country
and involve them in the developmental activities of the nation.
4) To solve the unemployment problems to some extent by appointing people who can read
and write, as agents under Small Savings. At present there are 44,615 authorized agents
involved in Small Savings collection throughout the State - details are as follows:

Agents

Number

S A S Agents

19,354

MPKBY Agents(exclusively for women)

21,891

PPF

3,370

Total
44,615
For the Financial Year 2006-07 Government of Karnataka has declared incentive to SAS and
MPKBY Agents, on their annual collection at the rate of 0.50%
For detailed information about Small Savings Schemes, login to the Web Site of National
Savings Institute, GOI,.

Small Savings Schemes at a Glance

(Interest Rates applicable from 1-3-2003)
(For the Assessment year 2006-07)
Name of the

Investment Limits &

Scheme

Denominations

Salient Features

KISAN VIKAS
PATRA
Money doubles in 8

No Limit on investments Available

Facility for premature

in denominations of Rs.100 ,

encashment with interest

Rs.500, Rs.1,000, Rs.5,000,

after 2

Rs.10,000 and 50,000.

2 1/2 years.

years 7 months

Nomination facility available.

NATIONAL

Minimum Rs.100. No maximum

Deposit qualify for deduction

SAVINGS

limit. Denominations Rs.100,

from

CERTIFICATE VIII

Rs.500, Rs.1,000, Rs.5,000 and

total income U/s 80 c of I.T

ISSUE

Rs.10,000.

Interest
compounded half
yearly payable on
maturity. Rs. 100
grows to Rs.
160.10 in 6 years.
POST OFFICE

Minimum Rs.1000 and in

Can be prematurely

MONTHLY

multiples of Rs.1000, Rs.3,00,000

encashed after one year at

INCOME SCHEME

for Single A/c Rs.6,00,000 for

3.5% discount. No discount

8 % per annum

Joint A/c.

if the premature encashment

payable monthly

is made after 3 years.

Rs. 667 will be paid

every month on a
deposit of
Rs.1,00,000 Bonus
of 5 % also
payable on
maturity after 6
years.
PUBLIC

Minimum Rs.500. Maximum of

Deposits qualify for IT rebate

PROVIDENT

Rs.70,000/- in a financial year.

under Sec 80 C interest

FUND ACCOUNT

earned is

8 % Interest

completely exempted U/s 10

(Compound)

(11) of I.T. Loan facility

Period is 15 years.

available after 3rd financial

year. Partial withdrawal is

permissible every year from
7th financial year.
SENIOR CITIZEN

Minimum Rs.1000 and in

Account can be opened

SAVINGS

multiples there of.

within one month from the

SCHEME 2004

Any number of accounts may be

date of Retirement benefits.

9 % p.a. Payable

opened subject to maximum of

Minimum age limit is 55

quarterly period is

Rs.15 Lakhs.

years ( VRS) to 60 years. For

5 years

Senior Citizens minimum age

is 60 years . Premature
encashment is allowed after
1 year with
conditions. The A/c can be
extended after maturity for a
period of 3 years.

POST OFFICE

Minimum Rs. 200/- No maximum

2,3 and 5 year accounts can

TIME DEPOSIT

limit

be encashed after one year

ACCOUNT

at a discount. Can be closed

1 - Year Account

after 6 months without

6.25 %

interest. No tax deduction at

2 - Year Account

source.

6.50 %
3 - Year Account
7.25 %
5 - Year Account
7.50 %
Interest
compounded
quarterly and paid
annually.

5 YEAR POST

Minimum Rs.10 per month or any

Benefit of protected savings

OFFICE

amount in multiples of Rs. 5

schemes admissible in case

RECURRING

thereof. No maximum limit.

of death of depositor before

DEPOSIT

the maturity period. The

ACCOUNT

nominee will be paid full

Interest

maturity value upto Rs.50

compounded

account, subject to certain

quarterly payable

conditions. 6 months and 12

on maturity, Rs.

months advance deposits

10/- account

earn rebate. 50 % of the

fetches Rs 728.90

balance can be availed as

after 5 years.

loan after 1 year.

POST OFFICE

Minimum Rs.50. Maximum

Cheque facility available for

SAVINGS

Rs.1,00,000 for single account

accounts maintaining a

ACCOUNT

Rs.2,00,000 for joint account. No

minimum balance of Rs. 500.

Type of Accounts

maximum limit on other account.

Interest is completely tax free

Int. p.a

U/s 10 (15) (1) of I.T Act.

Individual A/cs
3.5 %
Single/ Joint A/cs
3.5%

Aggregate Deductions Allowed U/s 80 C is Rs. 1 Lakh only.

Collection made under Small Savings for the past 3 years (Rs. in crores)

Year

Collection Made

Loan received from

Government of India

Gross

Net

2003-04

6046.53

2580.68

2533.60

2004-05

8389.37

4559.93

4233.00

2005-06

8695.50

3784.57

4016.48

2006-07

6946.26

1429.95

2592.76

2007-08

3675.32

-663.83(upto Dec 2007)

337.02

Incentive paid to Agents for the past 3 years (Rs.in crores)

Year

Claims

Amount

Remarks

2003-04

19,140

23.52

Paid

2004-05

20,150

27.98

Paid

2005-06

20,636

23.50

Paid

2006-07

19,286

14.65

Under process