Brief of the various postal savings schemes: (Prepared by T.

Shukamuni Aradhya, Instructor PTC Mysuru-570010)

Scheme Highlights Limits Rate of interest Income tax exemptions
w.e.f.01.04.2020 to
30.06.2020
Post Office Savings  Provision for regular  Minimum Balance:  4 per cent per annum  No exemption
Account Scheme deposits and  Cheque account on individual and
(SB) withdrawals; Rs.500/- joint accounts
 Non cheque account
 Single and joint Rs.500/-
accounts( up to 2  No maximum limit;
adults) can be open  Subsequent deposit
in multiples of
Rs.10/-
 Minimum
withdrawal
Not less than Rs.50/-
National Savings Recurring  Accounts for a period  Deposits in  The interest rate will  No exemption on
deposit Scheme) of 5 years; denominations change time to time, amount invested
(RD)  Can be extended with every month;  current rate of and interest earned
or without deposit ; Minimum Rs.100/- interest is 5.8%
 only individuals either and in multiples of
single or joint(up to 3 Rs10/-;
adults) can open the  No limits on the
account number of accounts;
 No maximum limit
on denominations;
 Automatic credit
from SB accounts
available
 National Savings Time  Fixed amount  Minimum Rs.1000/-  Interest compounded  No income tax
deposit Scheme deposited initially for and in multiples of quarterly exemption on
1/2/3/5 Years specified period; Rs.1000/-  paid annually; amount invested,
(TD) closed after  No maximum limit  Rate of interest per  except on amount
completion of the annum invested in 5 year
period;  1 year -5.5% TD;
 only individual  2 Year -5.5%  Interest earned is
accounts- single or  3 Year -5.5% taxable
joint(up to 3 adults)  5 Year -6.9%

National Savings (Monthly  Fixed amount  Minimum Rs.1000/-  Interest 6.6% per  No income tax
Income account) Scheme deposited for a period Deposits in multiple annum; payable exemption; interest
(MIS) of 5 years; Interest can of Rs.1000/-; monthly; is taxable
be drawn monthly;  Maximum: single  Automatic transfer to
 Only individual Rs.450000/ SB account available
account- Single or  Joint Rs.900000/-
Joint (up to 3 adults)
Public Provident Fund  only Single account,  Minimum Rs.500/-  Rate of interest 7.1 %  Yearly investment
Scheme Joint account not and multiples of per annum – exempt from income
(PPF) allowed Rs.50/  compounded tax up to prescribed
 Yearly investment;  Maximum annually limit as per section
Account for a period of Rs.150000/- per 80C of income tax;
15 years; annum in a financial interest earned
 A/c can be closed after year; completely exempt
15 years or retained from tax;
without deposit for  Balance exempt
any period or from wealth tax
Extended for 5 year
with deposit subject to
condition;
 No court attachment
of the balance;
 Can be opened in SBI/
 Nationalised bank/ PO;
 Loan and withdrawal
facilities are available
subject to conditions
Senior Citizens Savings  The following can  Minimum –  Rate of interest is  Investment qualifies
Scheme open a/c Rs.1000/- 7.4% per annum; for tax exemption
(SCSS)  An individual attaining  Multiples of  Can be subject to
the age of 60 years ; Rs.1000/- withdrawn conditions;
 Individual on VRS  Maximum- quarterly  Interest earned is
above age 55 years but Rs.1500000/- taxable
below 60 ;
 Retired Defence
Service person attain
the age of 50
 Both single and joint
account (with spouse
only) can be opened;
 Fixed sum deposited
for 5 years; can be
extended for another
3 years;
 Can be opened in PO/
SBI/ Nationalised
banks

National Savings  Deposit is for 5 years;  Minimum  Interest is 6.8 %  Investments qualify
Certificates (VIII issue)  only individuals can Rs.1000/- for exemption under
Scheme open –single or joint  Multiples of 100 section 80C of
(up to 3 adults)  Maximum- No Income tax act;
 No Premature closure limit Interest earned
taken as reinvested
Kisan Vikas Patra Scheme  A/c can be opened by  Minimum Rs.1000/-;  Interest is 6.9%  No income tax
(KVP) Single or Joint (up to 3  Multiples of 100  Deposit doubles in exemptions
adults)  Maximum –No limit 124 months or 10
 Premature closure year 4 months
after 2 years and 6
months
Sukanya Samriddhi  Account can be  Minimum deposit to  Interest 7.6%  Exempted under Sec
Account Scheme opened by guardian of open a/c is Rs.250/-  Maturity –After 80(c) of income tax
(SSA) a girl child from the  subsequent deposit completion of 21 act. Even interest is
birth of the girl child – Any amount in years for the account exempted
 till she attains the age multiple of Rs.50/- or if marriage takes
of ten years  minimum deposit place on attaining 18
 Deposit may be made per year is Rs.250/- years
up to 15 year from the  Maximum in a
date of opening, then financial year is
after 6 years no Rs.1,50,000/-
deposit allowed
 No premature closure
(Prepared by T.Shukamuni Aradhya, Instructor PTC Mysuru-570010)

 The Government Savings Promotion Act, 1873

 The Government Savings Promotion General Rules, 2018 (GSPR-2018)
 The Post Office Savings Account Scheme, 2019 published vide number G.S.R.921 (E), dated the 12th December 2019
 The National Savings Time Deposit Scheme, 2019 published vide number G.S.R.922 (E), dated the 12th December 2019
 The National Savings Recurring Deposit Scheme, 2019 published vide number G.S.R.918 (E), dated the 12th December 2019
 The National Savings (Monthly Income Account) Scheme, 2019 published vide number G.S.R.917 (E), dated the 12th December 2019
 The National Savings Certificate (VIII Issue) Scheme, 2019 published vide number G.S.R.919 (E), dated the 12th December 2019
 The Senior Citizen’s Savings Scheme, 2019 published vide number G.S.R.916 (E), dated the 12th December 2019
 The Kisan Vikas Patra Scheme, 2019 published vide number G.S.R.920 (E), dated the 12th December 2019
 The Sukanya Samriddhi Account Scheme, 2019 published vide number G.S.R.914 (E), dated the 12th December 2019
 The Public Provident Fund Scheme, 2019 published vide number G.S.R.915 (E), dated the 12th December 2019