- Minimum investment Rs. 500/- No maximum limit.
- Rate of interest 8% compounded half yearly.
- Rs. 1000/- grow to Rs. 1601/- in six years.
- Two adults, Individuals, and minor through guardian can purchase.
- Companies, Trusts, Societies and any other Institutions not eligible to purchase.
- Non-resident Indian/HUF can not purchase.
- No pre-mature encashment.
- Annual interest earned is deemed to be reinvested and qualifies for tax rebate for first 5 years under section 80 C of Income Tax Act.
- Maturity proceeds not drawn are eligible to Post Office Savings account interest for a maximum period of two years.
- Facility of reinvestment on maturity.
- Certificate can be pledged as security against a loan to banks/ Govt. Institutions.
- Facility of encashment of certificates through banks.
- Certificates are encashable any Post office in India before maturity by way of transfer to desired post office.
- Certificates are transferable from one Post office to any Post office.
- Certificates are transferable from one person to another person before maturity.
- Duplicate Certificate can be issued for lost, stolen, destroyed, mutilated or defaced certificate.
- Nomination facility available.
- Facility of purchase/payment to the holder of Power of attorney.
- Tax Saving instrument - Rebate admissible under section 80 C of Income Tax Act.
- Interest income is taxable but no TDS
- Deposits are exempt from Wealth tax.
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