NSC

The main features :

 Denominations =
 Rs.100,500,1000,5000 and Rs.10000/-
 Duration is
 5 years
 There is no prescribed upper limit on investment.
 Interest rate is
 7.8% p.a. compounded half yearly
 Interest received is eligible for deduction u/s 80C
 The certificates are easily transferable from one person to
another through the post office
 Section 80 C benefit is available
 one can take a loan against the NSC by
pledging it to the RBI or a scheduled bank

 or a co-operative society, a corporation or a

government company, a housing finance
company
 approved by the National Housing Bank
 Post maturity interest 4% p.a. till withdrawal
 After the death of the person nominee can
continue the a/c.
Monthly Income Scheme (MIS)

 Duration is
 5 years
 Interest rate is
 7.5% p.a. payable monthly.
 Before 13/02/2006, at maturity the bonus of 10% of
the amount is deposited in a/c.
 No bonus will be paid on accounts opened from
13/02/2006 to 07/12/2007.
 5% bonus will be given on accounts opened on or
after 08/12/07 till 30th November 2011
 Interest is taxable.
 Interest is payable monthly, from the month
next to deposit date.
 A deposit in multiple of Rs.1500 up to
maximum Rs.450000 in single a/c and
Rs.900000 in joint a/c.
 Nomination facility available.
 Rebate under section 80 C not admissible.
 Premature withdrawal is allowed after expiry of one year.
 If withdrawal is made after one year but before 3 years,
 2% of the deposit will be deducted, else it will be 1%.
 The nominee will not be allowed to continue the a/c by
transferring the same in his/her name after the death of the
depositor. But if a/c opened on joint name then one can
continue upto the max amount 4.5 lacs.
 A/c can be opened by single adult, two or three adults jointly, A
minor who has attained the age of 10 years and a guardian on
behalf of a minor or a person of unsound mind.
Post Office Recurring Deposit

 The maturity period is

 5 years but the a/c can be extended
 further 5 years with or without regular monthly
deposit.
 Interest is given on this a/c
 7.1%
 compounded quarterly.
 Interest is
 taxable.
 1991-14%, 1998 – 12.5%
 NRI can
 not open a/c.
 A/c can be opened in multiples of
 Rs.5 subject to a minimum of
 Rs.10 per month.
 maximum limit
 Not applicable, but in all 60 monthly deposits
will have to be made.
 Withdrawal up to 50% of the deposit after
 12 monthly deposits.
 Interest on withdrawal charged
 simple interest @9.3% p.a.
 A/c can be closed after
 3 years. But interest will be given
 4% p.a.
 On advance deposit, a rebate is offered
 @ Re 1 for 6 to 11 deposits and
 @ Rs.4 for every 12 deposits on
 an a/c of Rs.10.
 A person can open more than 1 a/c.
 If the a/c holder dies before making 12
installments,
 no interest is allowed.
Post Office Saving Bank Account

 Who can open A/C

1. Adult and a minor who has attained the age
of 10 years can also open this account.
 Interest is
 4% p.a.
 Tax free upto 10000
 Account can be opened in the name of
minor and a minor of 10 years and above
age can open and operate the account.
 Cheque facility is available if any body
maintain balance of
 Rs.500 and Rs.50 if cheque is not required.
 Maximum ceiling in a single holding is
 Not limit( 100000)
Post Office Time Deposit A/C

 The deposit shall be in the multiples of

Rs.200 with no maximum limit.
 Interest calculated on
 quarterly compounded basis is payable
annually.
Interest is on 1 year deposit is 6.8%

2 years deposit 6.9%

3 years deposit is 7.1%

5 years deposit is 7.6%

 Withdrawal before 1 year
 saving a/c interest is payable.
 Withdrawal after 1 year, interest shall be
paid at the rate which shall be 1% less than
the rate specified for a deposit of 1,2,3,5
years.
 Ex. Fd 5 years, surrender after 2 years, int
will be given 7.1-1 = 6.1%
Senior Citizen Saving Scheme

 Main features :
 Duration is 5 years.
 Rate of interest 8.3% p.a. payable quarterly
 The individual may open one or more
account in the multiple of Rs.1000/-, subject
to a maximum limit of Rs.15 lakh
The depositor may extend the account
for a further period of 3 years by
making an application to the post
office within a period of one year after
the maturity period of 5 years. The
extended account shall be deemed to
have been made from the date of
maturity, irrespective of the date of
application.
 Non-resident Indians (NRIs) and Hindu Undivided
Family (HUF) are
 not eligible to open an account.
 If both the holders in the joint a/c are 60 years or
above than they can together make a
 maximum deposit of Rs.30 lakh ( 15 lakh each)
 ROI is
 8.5% p.a. payable quarterly
 .
 Interest is payable on
 31st March, 30th June, 30st September and
31st December.
 Interest is taxable but
 Investment Eligible as a deduction u/s 80 C.
 Partial withdrawal is not permitted
 After expiry of one year from the date of
opening of the a/c, one can withdraw the
deposit and close the a/c subject to :
1. 1.5% of the deposit will be deducted if
closes after 1 year but before 2 years.
2. 1% of the deposit shall be deducted if
closes on or after the expiry of 2 years.
3. In the extended period of 3 years,
withdrawal without any deduction is
allowed after the expiry of one year of
extended period.
4. In case of closure of the account any time
on account of death of the depositor, no
deduction.
5. Nomination allowed whether a/c in individual
name or joint names.
DEPOSIT CAN BE MADE BY AN INDIVIDUAL
 Who has attained age of 60 years or above on the
date of opening of a/c.
 Who has attained the age of 55 years or more but
less than 60 years, who has retired on
superannuation or otherwise on the date of opening
of an a/c, subject to the condition that the a/c is
opened by such individual with in one month of the
date of receipt of the retirement benefits.
 the age limit of 55 years for retired
personnel of Defence Services is not
applicable.
 10% TDS is to be deducted if the interest
paid or payable exceeds Rs.10000 during
the financial year.
 Form 15H if not want to get deducted tds
 Date of realization of cheque shall be date of
opening of a/c.
 The a/c shall be compulsorily closed where
single a/c holder dies and the spouse is not
nominee. If the spouse is nominee, the a/c
can be continued .
Sukanya Samriddhi
Accounts

 • Rate of interest 8.3% p.a. calculated on

yearly basis ,Yearly compounded.

• Minimum INR. 1000/-and Maximum INR.

1,50,000/- in a financial year.
 Subsequent deposit in multiple of INR 100/-
 Deposits can be made in lump-sum No limit
on number of deposits either in a month or in
a Financial year
• A legal Guardian/Natural Guardian can
open account in the name of Girl Child.
• A guardian can open only one account in
the name of one girl child and maximum two
accounts in the name of two different Girl
children.
 • Account can be opened up to age of 10
years only from the date of birth.

• If minimum Rs 1000/- is not deposited in a

financial year, account will become
discontinued and can be revived with a
penalty of Rs 50/- per year with minimum
amount required for deposit for that year.
 Partial withdrawal, maximum up to 50% of
balance standing at the end of the preceding
financial year can be taken after Account
holder’s attaining age of 18 years.
• Account can be closed after completion of
21 years.
• Normal Premature closure will be allowed
after completion of 18 years /provided that
girl is married.