NSC PPF SENIOR CITIZEN SAVING SCHEME POST OFFICE SCHEMES AT GLANCE

Indian Government is running many investor friendly schemes through post office .Few changes have been made in these schemes Including int...

Indian Government is running many investor friendly schemes through post office .Few changes have been made in these schemes Including interest rates wef 01.04.2012 .Interest Rate of these scheme now will be declared annually. Main schemes are National Saving certificate (NSC) with tenure 5 Year and 10 year . Public provident fund (PPF) , Senior citizen saving scheme (SCSS) , Monthly Income scheme (MIS), Post office Recurring deposit account, Post office Saving account . This scheme are very useful as it give a guaranteed return for fixed period of time with Government guarantee.Details of Such scheme at glance is given below . Further Details are also given after the Initial table.

Public Provident Fund Account

1. Ideal investment option for both salaried as well as self employed classes.
2. Non-Resident Indians (NRIs) are not eligible.
3. Investment up to INR. 1,00,000 per annum qualifies for IT Rebate under section 80 C of IT Act.
4. 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.
5. 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.
6. Withdrawal permitted from 6th financial year.
7. Free from court attachment.
8. An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.

Public Provident Fund(Individual account on his behalf or on behalf of minor of whom he is the guardian)
Minimum Amount : INR. 500/- in a financial year
Maximum Amount :INR. 1,00,000/- in a financial year

Public Provident Fund Acts
Public Provident Fund Rules

Scheme	Interest payable, Rates, Periodicity etc.	Investment limits and Denominations	Salient features including Tax Rebate
Post Office Savings Account	4.0% per annum on individual/ joint accounts.	Minimum INR 50/-.	Cheque facility available.  Interest Tax Free.
5-Year Post Office Recurring Deposit Account	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. Can be continued for another 5 years on year to year basis.	Minimum INR 10/- per month or any amount in multiples of INR 5/-. No maximum limit.	One withdrawal upto 50% of the balance allowed after one year. Full maturity value allowed on R.D. Accounts restricted to that of INR. 50/- denomination in case of death of depositor subject to fulfillment of certain conditions. 6 & 12 months advance deposits earn rebate.
Post Office Time Deposit Account	Interest payable annually but calculated quarterly.	Minimum INR 200/- and in multiples thereof. No maximum limit.. Minimum INR 200/- and in multiples thereof. No maximum limit.	Account may be opened by individual.   The 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.
	Period          Rate
	1 yr. A/c      8.20%
	2 yr. A/c      8.30%
	3 yr. A/c      8.40%
	5 yr. A/c      8.50%
	w.e.f. 01.04.2012
Post Office Monthly Income Account Scheme	8.50% per annum   w.e.f. 01.04.2012	In multiples of INR 1500/- Maximum INR 4.5 lakhs in single account and INR 9 lakhs in joint account.	Maturity period is 5 years. Can be prematurely encashed after one year with some conditions.  No Bonus   is admissible on maturity in respect of MIS accounts opened on or after 01.12.2011.
15 year Public Provident Fund Account	8.80% per annum w.e.f. 01.04.2012	Minimum INR. 500/- Maximum INR. 1,00,000/- in a financial year. Deposits can be made in lumpsum or in 12 installments.	Deposits qualify for deduction from income under Sec. 80C of IT Act. Interest is completely tax-free. Withdrawal is permissible every year from 7th financial year. Loan facility available from 3rd Financial year. No attachment under court decree order.
National Savings Certificate (VIII Issue)	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.	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. Deposits qualify for tax rebate under Sec. 80C of IT Act.
			The interest accruing annually but deemed to be reinvested will also qualify for deduction under Section 80C of IT Act.
National Savings Certificate (IX Issue)	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.	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.
			Interest on these certificates shall be liable to tax under the Income-Tax Act, 1961 (43 of 1961, on the basis of annual accrual specified in rule15, but no tax shall be deducted at the time of payment of discharge value.
Senior Citizen Savings Scheme	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 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.	Maturity period is 5 years. A depositor may operate more than a account in individual capacity or jointly with spouse.  Age should be 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 benefits. Premature closure is allowed after one year on deduction of 1.5% interest & after 2 years 1% interest. TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a.  The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

Senior Citizen Savings Scheme (SCSS) Account

A new avenue of investment and return for Senior Citizen.

• The account may be opened by an individual,
• Who has attained age of 60 years or above on the date of opening of the account.
• 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.
• 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
• After one year but before 2 years on deduction of 1 ½ % of the deposit.
• 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 qualify 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.

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
• Rate of interest 4% per annum

Time Deposit Account

• Any individual (a single adult or two adults jointly) can open an account.
• Group Accounts, Institutional Accounts and Misc. account not permissible.
• Trust, Regimental Fund or Welfare Fund not permissible to invest.
• 1 Year, 2 Year, 3 Year and 5 Year Time Deposit can be opened.
• In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01.12.2011, if the deposit is withdrawn after 6 months but before the expiry of one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable.
• In case of premature closure of 2 year, 3 year or 5 year account on or after 01.12.2011, if the deposit is withdrawn after the expiry of one year from the date of deposit, interest on such deposits shall be calculated at the rate, which shall be one per cent less than the rate specified for a period of deposit of 1 year, 2 year or 3 years as mentioned in the concerned table given under Rule 7 of Post office Time Deposit Rules.
• Rate of interest - 8.20%, 8.30%, 8.40%, 8.50% compounded quarterly for 1,2,3 & 5 years TD account respectively.
• The 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.

Type of Account	Minimum Deposit	Maximum Deposit
1,2,3 & 5 Year TD	INR.200/- and in multiples of INR. 200/- thereafter	No limit.

Post Office Savings Bank - The safest investment
Save today-Smile tomorrow
Pay Day is your Savings Day

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	Minimum limit	Maximum limit
Single	INR 1500/-	INR 4.5 lakhs
Joint	INR 1500/-	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.

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 – Re-invest on maturity and relax - On retirement it will fetch you monthly pension as the NSC matures.

National Savings Certificate Act

Frequently Asked Questions (FAQ) on Banking

1. How can I claim payment of deceased account / certificate holder?

The claimant may be the nominee or legal heir.
If there is nomination, the nominee can prefer the claim in the prescribed form alongwith death certificate.
If there is no nomination, any one of the legal heirs can prefer the claim in the prescribed form [SB84]. For this death certificate and consent statements of all legal heirs are required. Claim upto one lakh can be settled.
If the claim is exceeding one lakh, claims can be settled by legal evidence ie, by probate of will or succession certificate.

2. How to transfer accounts and certificate?

For transfer of accounts- the depositor should apply in the prescribed form [SB10(b)] or manual application. The application can be given either in transferring office or transferee office.
For transfer of certificates- the investor should apply in the prescribed form[NC32]. The application may be given in either of the offices.

3. How to open an account in post office and its requirements?

To open an account [Savings Bank(SB), Recurring Deposit(RD), Time Deposit(TD), Monthly Income Scheme(MIS) SB3, SB103 (pay-in-slip) and specimen signature slip for SB and TD are required.
For senior citizen accounts, separate forms are to be used. For SB account introduction is compulsory.

4. What is silent account and how to revive it?

When there is no transaction in an SB account continuously for 3 financial years, the account will be treated as silent account.
For revival, one application from the customer is required. LSG/HSG offices can revive the accounts independently. Remaining offices, HO will revive the accounts.
If the balance in the silent account is less than minimum, then INR. 20/- will be debited towards service charges.

5. What are late payment fees for recurring deposits?

The monthly deposits should be credited on any day of the month. If the monthly instalment is not credited for any particular month, then it becomes a default. The defaulted months can be credited subsequently (for INR. 10/- denomination, 0.20 paise for each month of default) maximum 4 defaults are allowed.

6. What is the procedure for the issue of duplicate certificates?

The investor should apply in the prescribed form for duplicate certificate in respect of lost, stolen, destroyed, mutilated or defaced certificates (NC29).
The application shall be accompanied by a statement showing particulars of certificates and furnish an indemnity bond in the prescribed form with one or more sureties or with a bank guarantee is required.
In case of mutilated or defaced certificates, no indemnity bond is required.

7. How I get duplicate passbook?

Application in the prescribed form or manuscript application may be given by affixing prescribed fee in the form of postage stamp. New duplicated Passbook will be issued by sub post offices only.

8. What are the norms for issuing a Cheque Books?

Cheque books are issued in respect of cheque accounts.
In a cheque account, minimum balance should be INR. 500/-

9. What are the service charges for outstations cheque?

Cheque realisation charges for outstation cheques.
INR. 30/- for first thousand or part
INR. 31/- for each additional thousand or part
In case of bouncing of cheque INR. 50/- is charges as service charge.

10. Can Monthly Income Scheme (MIS) interest be credited to RecurringDeposit (RD) account?

No. There is no provision. Interest amount can be credited to SB account and after that from SB to RD is permissible.

11. What is the minimum balance required for an account?

Minimum balances in respect of different types of account is given below.

SB(cheque account)	INR. 500/-
SB(non cheque account)	INR. 50/-
MIS	INR. 1500/-
TD	INR. 200/-
PPF	INR. 500/-
Senior Citizen	INR. 1000/-

12. How I can get encashment of certificates / account before maturity?

NSCs (VIII Issue)	Maturity period 5 years (for certificates issued on or after .01.11.2011). No premature encashment possible.
Different Savings Accounts
SB	Can be closed at any time
RD	Premature closure permissible after 3 years - only SB rate is permissible
TD	Premature closure permissible after 6 months
MIS	Premature closure permissible after 1 year
Senior Citizen	Premature closure after 1 year