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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.

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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

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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.

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

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.

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. NoBonus is

admissible on

maturity in respect

of MIS accounts

opened on or after

01.12.2011.
http://www.indiapost.gov.in/SavingsAccount.aspxhttp://www.indiapost.gov.in/SavingsAccount.aspxhttp://www.indiapost.gov.in/RecurringDeposit.aspxhttp://www.indiapost.gov.in/RecurringDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/MIS.aspxhttp://www.indiapost.gov.in/TimeDeposit.aspxhttp://www.indiapost.gov.in/RecurringDeposit.aspxhttp://www.indiapost.gov.in/RecurringDeposit.aspxhttp://www.indiapost.gov.in/SavingsAccount.aspx

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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


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


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
http://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#IXhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/NSC.aspx#VIIIhttp://www.indiapost.gov.in/PPF.aspxhttp://www.indiapost.gov.in/PPF.aspx

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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 onedeposit 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 2years 1% interest.

TDS is deducted

at source on

interest if the

interest amount is

more than INR

10,000/- p.a. The
http://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspxhttp://www.indiapost.gov.in/SCSS.aspx

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investment under

this scheme

qualify for the

benefit of Section

80C of the Income

Tax Act, 1961from 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 Maximum Deposit

Individual Account

INR. 10/- and in multiples

of INR. 5/- thereafter o limit.

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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 lakhsJoint 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.

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.

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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 Minimum limit Maximum limit

Public Provident

Fund(Individual account

on his behalf or on behalfof minor of whom he is

the guardian)

INR. 500/- in a financial

ear

INR. 1,00,000/- in a

financial year

National Savings Certificates (NSC)

NSC VIII Issue

Scheme specially designed for Government employees, Businessmen andother 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.


Maturity value of a certificate of INR.100/- purchased on or after 1.4.2012

shall be INR. 152.35 after 5 years.

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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.


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 yearsRe-

invest 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.

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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.

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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.

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