POST OFFICE SAVINGS BANK – SCHEMES AND INTEREST RATES (from 01.04.2013)

POST OFFICE SAVINGS BANK – SCHEMES AND INTEREST RATES  (from 01.04.2013)
Sl. No	SAVINGS SCHEME	DEPOSIT PERIOD	INTEREST RATE	DEPOSIT LIMITS	FEATURES & TAX CONCESSIONS
1	Savings Account (SB)	-	4 % per annum (Interest will be added to the A/c on 1st April of every year)	Minimum Balance: Rs.50-  (for Ordinary A/c) & Rs.500-  (for Cheque A/c)	Savings Account with the facility of making Deposits and withdrawals whenever the depositor wants through cash/cheque. Can be used for crediting the interest of MIS/SCSS/TD Accounts and for debiting the monthly RD deposit amount every month automatically.
2	Recurring Deposit (RD)	5 Years	8.3 % Quarterly Compound Interest (Approximately Equal to 9.48% p.a simple interest) For example: Maturity for denomination of Rs.100-   will be Rs.  7,445- Rs.200-   will be Rs.14,891- Rs.500-   will be Rs.37,227-	Minimum Denomination: Rs.10- per Month Maximum: No limit Deposit can be made in multiple of Rs.5-	Monthly deposit scheme with fixed denomination. Suitable for Salaried people and for Monthly saving investors Penalty fee @Re.1 for Rs.50- denomination will be collected for one default month if the monthly deposit not made within the last date. Account cannot be continued if it has six default months. Rebate amount will be given for advance deposit for 6/12 months. A/c Can be closed after 3 years only (with SB rate of Interest) 50% amount in the A/c can be taken as loan after 1 year if eligible. A/c can be extended with or without deposits for further period of 1/2/3/4/5 years.
3	Monthly Income Scheme (MIS)	5 Years	8.4 % per annum (Payable every Month) For Example: Rs.1050- p/m for Deposit Rs.1,50,000- Rs.3150- p/m for Deposit Rs.4,50,000-	Maximum : Rs.4,50,000- (for Single A/c)   & Rs.9,00,000- (for Joint A/c) Deposit can be made in multiple of Rs.1500-	Useful scheme for pensioners and people those who want to get Monthly income on their deposits. No bonus from 01.12.2011 A/c can be closed after 1 year with deductions. For higher interest: If the Monthly Interest is automatically credited into RD account every month, total returns will be around 10.4% p.a
4	Senior Citizen Savings Scheme (SCSS)	5 Years	9.2 % per annum  Payable Quarterly, (4 times in a year) (Quarterly interest shall be payable on the Last working day of March, June, September, December)	Maximum Limit: Rs.15,00,000- Deposit can be made in multiple of Rs.1000- Amount exceeding Rs.99, 000- should be made by Cheque only.	Useful for pensioners/Senior citizens who want to get periodical income from their deposit amount. (Deposit also eligible for Income tax rebate) Minimum Age:  60 Years and For persons who retired on VRS : 55 Yrs Single and Joint A/c (with spouse only) can be opened. A/c can be closed after 1 year with deductions. TDS will be deducted on interest earned if the interest is more than Rs.10, 000/- p.a.  (If form 15-G/H is given every year TDS will not be deducted)
5	Time Deposit (TD)	1 year 2 year 3 year 5 year	Below mentioned interests are Quarterly Compound interests and payable every year. Quarterly             Equivalent Compound           Simple Interest Interest  8.2 % QCI       =  8.46 % p.a  8.2 % QCI       =  8.46 % p.a  8.3 % QCI       = 8.56 % p.a  8.4 % QCI       = 8.67 % p.a	Deposit can be made in multiple of Rs.200- No maximum limit on deposits	Useful scheme for persons who want to deposit their Money for a specific period like 1/2/3/5 years Can be closed after 6 months only with SB rate of Interest. If the A/c (except 1 yr T.D) closed after one year, 1 % interest will be deducted on the interest rate of Completed year TD. 5 year TD amount eligible for income tax benefit under section 80C.
6	Public Provident Fund (PPF)	15 years	8.7 % per annum * (compounded yearly) Note: * Interest rate that changes from time to time will be applicable for the balance in the A/c	Minimum amount: Rs.500- per Financial Year. Maximum deposit: Up to Rs.1, 00,000- in a financial year.	Useful scheme for Income Tax payers as the PPF Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. One Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rd financial year. PPF can be opened by any adult in his/her name and in the name of a Minor as a Guardian. Maximum 12 deposits can be made in a year
7	National Savings Certificate (NSC VIII issue)	5 year	8.5 % half-yearly compound interest (payable at the time of maturity) which is equivalent to simple interest rate of10.32 % p.a	Certificates Available in Rs.100-, Rs 500-, Rs.1000-,Rs. 5000-, Rs.10000- Denominations No maximum limit on investment.	Useful scheme for Income Tax payers as the NSC investments qualify for tax rebate under Sec. 80C of IT Act. Can be encashed on maturity only (i.e., after 5 years). Loan can be taken by pledging the NSC bonds at nationalized banks. Maturity amount for Rs.10,000- NSC will be Rs.15,162- after 5 years
8	National Savings Certificate (NSC IX issue)	10 year	8.8 % half-yearly compound interest (payable at the time of maturity) which is equivalent to simple interest rate of13.65 % p.a	Certificates Available in Rs.100-, Rs.500-, Rs.1000- ,Rs.5000-,Rs.10000- Denominations No maximum limit on investment	Useful scheme for Income Tax payers as the NSC investments qualify for tax rebate under Sec. 80C of IT Act. Can be encashed on maturity only (i.e., after 10 years). Loan can be taken by pledging the NSC bonds at Nationalized banks Maturity amount for Rs.10,000- NSC will be Rs.23,660- after 10 years

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Note: SB, RD, TD, MIS, NSC can be opened by Any Single Adult, Joint adults (operated through both / ‘E’ or ‘S’), A minor through Guardian, A minor above 10 years himself

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