|
Salient
Features of the Scheme
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Tenure
of the Scheme
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5
years, which can be extended by 3 more years
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|
Rate
of interest
|
9%
(simple interest)
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Frequency
of Computing interest
|
Quarterly
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Tax
aspects
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Interest
is fully taxable
|
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Investment
to be in multiples of
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Rs.1000/-
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Maximum
investment limit
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Rs.15
lakhs
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Minimum
eligible age
|
60
years (55 years for those who have retired under a voluntary or
a special voluntary scheme provided investment is made within 1
month of date of receipt of retirement benefits for retired
personnel of Defence Services (excluding Civilian Defence
Employees) - no age limit.
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|
Facility
of premature withdrawals
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Available
after 1 year of holding but with penalty
|
|
Transferability
feature
|
Not
available
|
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Tradability
|
Not
available
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Nomination
Facility
|
Available
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Mode
of Holding
|
Generally
single, Joint mode is permitted but only spouses will be allowed
to open accounts jointly with beneficiaries.
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Who can apply
The scheme is available for citizens above 60 years of age; however a
provision has been put in place for individuals who have crossed 55 years of
age. Such individuals may invest subject to the conditions that,
-
The person has retired under a voluntary retirement
scheme or a special voluntary retirement scheme on the date of making
the investment,
-
The investment is made within three months of the
date of retirement,
-
And a certificate from the employer, indicating the
fact of retirement, retirement benefits, along with period of such
employment with the employer, is attached with the application form.
Non-Resident Indians and Hindu Undivided Families are not
permitted to invest in the scheme.
Investment Limits
Investments can be made in any post-office by opening an account. Only one
deposit can be made in each account; the deposit amount shall be a multiple
of Rs 1,000 and should not exceed Rs 1,500,000.
A depositor can operate more than one account subject to
the condition that all the deposits taken together don't exceed the
specified amount i.e. Rs 1,500,000. Also more than one account shall not be
opened in the same post-office during a calendar month.
- Interest rate
The scheme will offer an interest of 9 per cent per annum. The same
will be payable on 31st March, 30th June, 30th September and 31st
December each year.
- Mode of holding
The depositor can hold an account either individually or jointly with
his/ her spouse.
- Nomination
Nomination facility has been provided under the scheme. In the event of
death of the depositor, the amount due shall be paid to the nominee.
Nomination facility is also available incase of joint accounts.
- Maturity
The scheme has a tenure of 5 years. The account can be extended for a 3
year period by making an application.
- Withdrawals
Investors will be permitted to prematurely liquidate their investments
at any time after the expiry of 1 year from the date of opening of the
account subject to the following conditions,
-
In case the account is closed after the expiry of
1 year but before the expiry of 2 years from the date of opening of
the account, an amount equal to 1.5% of the deposit shall be
deducted.
-
In case the account is closed on or after the
expiry of 2 years from the date of opening of the account, an amount
equal to 1% of the deposit shall be deducted.
- Tax benefits
The interest income from the scheme is fully taxable.
- Transfer of Account
The account can be transferred from one post-office to another.
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