SMALL SAVINGS
Product Information
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What are small savings?
Initial points of small savings
Post Office Savings Schemes
What are small savings?
small savings plans not only provide growth to your money but also provide you with financial
security at various stages of your life. It depends on your needs what product suits you best.
You must go through the scheme documents before starting any investment scheme. Each financial
plan has its own advantages and shortfalls, only a good research will save your hard earn money.
Initial points of small savings
1. When you need returns?
i.e. you need money in short term or long term
2. How much risk you can take?
i.e. you prefer safe investments or some risky (e.g. bonds or equity)
3. What will be your investment pattern?
i.e. you want to invest a big amount one time, or small portion regularly
4. How much do you know about the product?
i.e. are you aware of good and bads of a scheme in which you are investing
For an example if you are looking for short term savings then you can invest your money in post offices,
government bonds, mutual funds, and if you are concentrated to long term
savings then public provident funds (PPF), life insurance, long term bank deposits (FDs, RDs) can help you.
Post Office Savings Schemes
| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
| 4.0%per annum on individual/ joint accounts. |
Minimum INR 20/- for opening. |
. Account can be opened by cash only.
. Minimum balance to be maintained in a non-cheque facility account is INR 50/-.
. Cheque facility available if an account is opened with INR 500/- and for this purpose minimum balance of INR 500/-in an account is to be maintained.
. Cheque facility can be taken in an existing account also.
. Interest earned is Tax Free up to INR 10,000/- per year from financial year 2012-13.
. Nomination facility is available at the time of opening and also after opening of account.
. Account can be transferred from one post office to another.
. One account can be opened in one post office
. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
. Joint account can be opened by two or three adults.
. At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.
. Single account can be converted into Joint and Vice Versa.
Minor after attaining majority has to apply for conversion of the account in his name.
Deposits and withdrawals can be done through any electronic mode in CBS Post offices.
*Inter Post office transactions can be done between CBS post offices
*ATM/Debit Cards can be issued to Savings Account holders( having prescribed minimum balance on the day of issue of card) of CBS Post offices.
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| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
From 1.4.2014, interest rates are as follows:-
8.4% per annum (quarterly compounded)
On maturity INR 10/- account fetches INR746.53.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. |
. Account can be opened by cash/cheque and in case of cheque the date of deposit shall be date of presentation of cheque.
. Nomination facility is available at the time of opening and also after opening of account.
. Account can be transferred from one post office to another.
. Any number of accounts can be opened in any post office.
. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
. Joint account can be opened by two adults.
. Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working
day of next month if account is opened between 16th day and last working day of a calendar month.
. If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default,
default fee @ 5 paisa for every 5 rupee shall be charged. After 4 regular defaults, the account becomes
discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made.
*If in any RD account, there is monthly default(s) the depositor has to first pay the defaulted monthly
deposit with default fee and then pay the current month deposit. This will be applicable for both CBS and non CBS Post offices.
. There is rebate on advance deposit of at least 6 installments.
Single account can be converted into Joint and Vice Versa.
Minor after attaining majority has to apply for conversion of the account in his name.
. 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 fulfilment of certain conditions.
In case of deposits made in RD accounts by Cheque, date of credit of Cheque into Government accounts shall be treated as date of deposit.
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| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
Interest payable annually but calculated quarterly.
From 1.4.2014, interest rates are as follows:-
Period Rate
1yr.A/c 8.40%
2yr.A/c 8.40%
3yr.A/c 8.40%
5yr.A/c 8.50% |
Minimum INR 200/- and in multiple thereof. No maximum limit. |
. Account may be opened by individual.
. Account can be opened by cash/cheque and in case of cheque the date of realization of cheque in Govt. account shall be date of opening of account.
. Nomination facility is available at the time of opening and also after opening of account.
. Account can be transferred from one post office to another.
. Any number of accounts can be opened in any post office.
. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
. Joint account can be opened by two adults.
. Single account can be converted into Joint and Vice Versa.
. Minor after attaining majority has to apply for conversion of the account in his name.
. *In CBS Post offices ,when any TD account is matured, the same TD account will be automatically
renewed for the period for which the account was initially opened e.g 2 Years TD account will
be automatically renewed for 2 Years. Interest rate applicable on the day of maturity will be applied.
. Lock up period of 6 months for premature closure of TD accounts has been removed and as and when any TD accounts is
closed before one Year, interest @ savings account applicable from time to time shall be payable. This will be applied for both CBS and non CBS Post offices.
. The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
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| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
From 1.4.2014, interest rates are as follows:-
8.40% per annum payable monthly. |
In multiples of INR 1500/-
Maximum investment limit is INR 4.5 lakhs in single account and INR 9 lakhs in joint account.
An individual can invest maximum INR 4.5 lakh in MIS (including his share in joint accounts)
For calculation of share of an individual in joint account, each joint holder have equal share in each joint account.
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. Account may be opened by individual.
. Account can be opened by cash/cheque and in case of cheque the date of realization of cheque in Govt. account shall be date of opening of account.
. Nomination facility is available at the time of opening and also after opening of account.
. Account can be transferred from one post office to another.
. Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
. Joint account can be opened by two or three adults.
. All joint account holders have equal share in each joint account.
. Single account can be converted into Joint and Vice Versa.
. Minor after attaining majority has to apply for conversion of the account in his name.
. Maturity period is 5 years from 1.12.2011.
. Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or ECS./In case
of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices.
. Can be prematurely en-cashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at
the discount of 1% of the deposit. (Discount means deduction from the deposit.)
. A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07
and up to 30.11.2011. No bonus is payable on the deposits made on or after 1.12.2011.
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| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
From 1.4.2015, interest rates are as follows:-
9.3% 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.
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There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh.
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. An individual of the Age of 60 years or more may open the account.
. An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or
under VRS can also open account subject to the condition that the account is opened within one month of receipt of
retirement benefits and amount should not exceed the amount of retirement benefits.
. Maturity period is 5 years.
. A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).
. Account can be opened by cash for the amount below INR 1 lakh and for INR 1 Lakh and above by cheque only.
. In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account.
. Nomination facility is available at the time of opening and also after opening of account.
. Account can be transferred from one post office to another
. Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
. Joint account can be opened with spouse only and first depositor in Joint account is the investor.
. Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or Money Order.
. In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. It will be applicable at all CBS Post Offices.
*Quarterly interest of SCSS accounts standing at CBS Post offices can be credited in any savings account standing at any other CBS post offices.
. Premature closure is allowed after one year on deduction of an amount equal to1.5% of the deposit & after 2 years 1% of the deposit.
. After maturity, the account can be extended for further three years within one year of the maturity by giving application
in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction.
TDS is deducted at source on interest if the interest amount is more than INR 10,000/- p.a.
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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| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
From 1.4.2014, interest rates are as follows:-
8.70% per annum (compounded yearly).
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Minimum INR. 500/- Maximum INR. 1,50,000/- in a financial year.
Deposits can be made in lump-sum or in 12 installments.
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. An individual can open account with INR 100/- but has to deposit minimum of INR 500/- in a financial
year and maximum INR 1,50,000/-
. Joint account cannot be opened.
. Account can be opened by cash/cheque and In case of cheque, the date of realization of cheque in Govt. account shall be date of opening of account.
. Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another.
. The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
. Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
. Maturity value can be retained without extension and without further deposits also.
. Premature closure is not allowed before 15 years.
. 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 from the year of opening account.
. Loan facility available from 3rd financial year.
. No attachment under court decree order.
. The PPF account can be opened in a Post Office which is Double handed and above.
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| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
From 1.4.2014, interest rates are as follows:-
8.5% compounded six monthly but payable at maturity.
INR. 100/- grows to INR 151.62 after 5 years.
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Minimum INR. 100/- No maximum limit available in denominations of INR. 100/-, 500/-, 1000/-, 5000/- & INR. 10,000/-.
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. A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor.
. Deposits qualify for tax rebate under Sec. 80C of IT Act.
. The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.
*In case of NSC VIII , transfer of certificates from one person to another can be done only once from date of issue to date of maturity.
*At the time of transfer of Certificates from one person to another, old certificates will not be discharged.
Name of old holder shall be rounded and name of new holder shall be written on the old certificate and on
the purchase application(in case of non CBS Post offices) under dated signatures of the authorized Postmaster a
long with his designation stamp and date stamp of Post office.
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| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
| Amount Invested doubles in 100 months (8 years & 4 months)
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Available in denominations of Rs 1,000, 5000, 10,000 and Rs 50,000. Minimum deposit Rs 1000/- and no maximum limit.
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. Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.
. KVP can be purchased from any Departmental Post office.
. Facility of nomination is available.
. Certificate can be transferred from one person to another and from one post office to another.
. Certificate can be encashed after 2 & 1/2 years from the date of issue.
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| Interest payable, Rates, Periodicity etc. |
Minimum Amount for opening of account and maximum balance that can be retained |
Salient features including Tax Rebate |
| Rate of interest 9.2% Per Annum(w.e.f 1-4-2015),calculated on yearly basis ,Yearly compounded.
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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
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. 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. For initial operations of Scheme,
one year grace has been given. With the grace, Girl child who is born between 2.12.2003 &1.12.2004 can open account up to1.12.2015.
. 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.
. If account is not closed after maturity, balance will continue to earn interest as specified for the scheme from time to time.
. Normal Premature closure will be allowed after completion of 18 years /provided that girl is married.
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SL Wealth
