Know about the Postal Savings Scheme and Short Note of POSB Schemes

01. SAVINGS BANK (SB):-

=> POSB savings scheme started in 01.04.1982.
=> Present interest rate is 4%. as on 01.10.2020
=> Account may be opened by
(i) a single adult
(ii) Joint Account (Maximum 2 adults)
(iii) Minor above 10 years of age
(iv) A guardian on behalf of a minor/Person of unsound mind.
=> Account can be opened by cash only.
=> One account can be opened in one post office.
=> At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active, else account became silent (Dormant).
=> for joint A accounts , All the depositors should sign in the withdrawal form.
=> for Joint B accounts, any one of the depositors can sign in the withdrawal form.
=> In case of transfer of joint accounts, application for transfer is required to be signed by all the depositors.
=> Minimum balance to be maintained in an account is INR 500/- , if balance Rs. 500 not maintained, a maintenance fee of one hundred (100) rupees shall be deducted from the account on the last working day of each financial year and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account shall stand automatically closed.
=> Revival of SB account ; collect revival application from the customer and request initiated
by SO, and verification will be done at HO.
=> Cheque facility/ATM facility are available.
=> Intra Operable Net banking/Mobile Banking facility is available.
=> Online Fund transfer between Post Office Savings Accounts/Stop Cheque/Transaction View facility is available through Intra Operable Net banking/Mobile Banking
=> Facility to link with IPPB Saving Account is available
=> Funds Transfer (Sweep in/Sweep out) facility is available with IPPB Saving Account.
=> 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
=> First time nomination facility is free. Change of nominee or cancel of nominee is 50/- in cash mode only.
=> maximum 4 nominations are allowed.
=> Account can be transferred from one post office to another.
=> Limit of deposit/wdl of other SOL account is Rs.25000.
=> Sanchayaka account opening discontinued from 01.10.2016.
=> Under POSB rules 1981, Nomination or cancellation or variation of a nomination shall be registered at HEAD POST OFFICE.
=> No fee for issue of fresh pass book.
=> Register of BO SB warrants should be maintained in the form of SB-45.
=> Register of undelivered passbooks should be maintained in the form of SB-44.
=> presentation of pass book is not necessary in case of Sb cheque account.
=> If the Sb pass book is lost, destroyed, stolen, or spoilt while in the custody of depositors, A duplicate passbook may be issued on payment of Rs 50/-.
=> Head post master is empowered to close an account with out passbook.
=> Only one withdrawal is allowed in a day in a Branch post office.
=> Outstation cheques collection charges :- for first Rs.1000 Rs.30 and every additional 1000 and part there of Rs.3.
=> Branch post master can sanction Sb withdrawal with out prior sanction of Account office upto the amount of Rs 5000/-.
=> for sending documents from SO to HO, list of documents(SB-104) will be used.
=> for sending documents from HO to SO, SB slip will be used.
=> SB -28 will be issued by all Post offices as a token of collection of passbook for various reasons.
=> for transfer of accounts SB-10 (B) application is to be collected from the customer.
=> Sb 26 receipt is used at branch post office for opening of sb account.
=>Earlier Sb 3 form is used for opening of SB account, now all the post offices are migrated to CBS plat forms and new Account opening forms (AOF) is being used for this purpose.
=> SB 103 form is used for deposit in account, SB 7 is used for withdrawal of account, SB 7A is used for closer of account, SB 10 B is used for transfer of account.

02. RECURRING DEPOSIT (RD) :-

=> Started from 01.04.1982.
=> present interest rate 5.8%. as on 01.10.2020
=> Account may be opened by
(i) a single adult
(ii) Joint Account (Maximum 3 adults)
(iii) Minor above 10 years of age
(iv) A guardian on behalf of a minor/Person of unsound mind.
=> minimum amount required to opening of RD account Rs 100/-(multiples of 10) and maximum no limit.
=> Account can be opened by cash / Cheque and in case of Cheque the date of deposit shall be date of clearance of Cheque.
=> RD deposits can be made through MPKBY agents (Mahila pradhan Khetriya Bachat yojana), and agent will earn 4% commission on total deposits.
=> An individual can open any number of RD accounts in single post office.
=>on maturity of Rs 100/- accounts fetches Rs 6970/-.
=> Maturity period of RD account is 5 years and can be extended for another 5 years .
=> In case extension of Rd account application is submit concerned post master before one month of maturity date.
=> 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.
=> RD account cane be prematurely closed after 3 years with Sb interest only.
=> One loan up to 50% of the balance allowed after one year. It may be repaid in one lump sum along with interest at the prescribed rate at any time during the currency of the account.
=> protected saving scheme is applicable for Rs.50 denomination only, age of customer should be 18-53 years, two years should have been completed from the date of opening, 24 installments should have been made, shouldnt be discontinued account, claim should be preferred within one year from the date of death, claim will be settled by the Head Postmaster.
=> Online Deposit facility is available through Intra Operable Net banking/Mobile Banking.
=> Online Deposit facility is available through IPPB Saving Account.
=> If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee @ 1 Rs for every 100 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.
=> rebate is paid for payment of six months in advance.
=> If in any RD account, there is monthly default amount , 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.
=> There is rebate on advance deposit of at least 6 installments, Rs. 10 for 6 month and Rs.40 for 12 months Rebate will be paid for denomination of Rs. 100.
=> if the date of maturity is holiday then the depositor can receive the maturity amount due on the day before the date of maturity.
=> if the date of maturity is holiday then the depositor can receive the maturity amount due on the day before the date of maturity.
=> Sb 26 receipt is used at branch post office for opening of Rd account.
=> Earlier Sb 3 form is used for opening of SB account, now all the post offices are migrated to CBS plat forms and new Account opening forms (AOF) is being used for this purpose.
=> First time nomination facility is free. Change of nominee or cancel of nominee is 50/- in cash mode only.
=> SB 103 form is used for deposit in account, SB 7 is used for withdrawal of account, SB 7A is used for closer of account, SB 10 B is used for transfer of account.
=> No fee for issue of fresh pass book.
=> If the Rd pass book is lost, destroyed, stolen, or spoilt while in the custody of depositors, A duplicate passbook may be issued on payment of Rs 50/-.

03. SUKANYA SAMRUDDHI YOJANA (SSA):-

=> SSA scheme was launched on 22.01.2015.
=> interest rate is 7.6%. as on 01.10.2020
=> A legal guardian/ natural guardian can open the account in the name of girl child.
=> Account can be opened upto the age of 10 years from the date of birth of girl child.
=> A guardian can open one account in the name of girl child and maximum of two different girl children’s. Three girl children’s in case of twins in second delivery.
=> Minimum amount for opening of SSA account is Rs 250/- and subsequent deposits in multiples of Rs 50/- and maximum of Rs 1.5 lakhs in a financial year.
=> Minimum deposit in a financial year is Rs 250/-.
=> Deposits can be made in lump sum and no limits on number of number of deposits either in a month or in a financial year.
=> Partial withdrawal, maximum of 50% of the balance at the end preceding year is allowed in a SSA for girl child higher education and marriage after she attains 18 years provided that girl is married.
=> If marriage happens before completion of 21 years on attaining the age of 18 years account can be closed before one month of marriage or after 3 months from the date of marriage.
=> Premature closure allowed after 5 years, on extreme grounds i.e., Death of guardian or life threatening diseases of account holder. SPOs will issue the sanction.
=> Account can be closed after completion of 21 years.
=> normal premature closure will be allowed after completion of 18 years provided the girl child is married.
=> there is no nomination facility for SSA account.
=> Online Deposit facility is available through Intra Operable Net banking and IPPB Saving Account.
=> Only one withdrawal is allowed in a financial year and five withdrawals are allowed entire period.

04. MONTHLY INCOME SCHEME (MIS):-

=> Started from 15.08.1987.
=> interest rate 6.6%. as on 01.10.2020
=> Account may be opened by
(i) a single adult
(ii) Joint Account (Maximum 3 adults)
(iii) Minor above 10 years of age
(iv) A guardian on behalf of a minor/Person of unsound mind.
=> maturity period is 5 years i.e w.e.f from 01.12.2011.
=> account can be closed b/w one to three years 2% will be deducted, after 3 years 1% will be deducted from principal amount.
=> minimum amount to open mis account is 1000/- and with multiples of Rs 100/- .
=> maximum investment limit is Rs 4.50 lakhs in single account and 9 lakhs in joint accounts.
=> any number of accounts can be opened in any post office subject to maximum limit by adding balance in all the accounts.
=> interest can be transferred from MIS TO SB account.
=> 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.
=> Interest shall be payable to the account holder on completion of a month from the date of deposit
=> If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.
=> if the interest payable on every month in MIS is not claimed by the depositor, such interest will not earn additional interest.

05. NATIONAL SAVINGS CERTIFICATES (NSC) :-

=> started from 08.05.1996.
=> present interest rate 6.8% compounded six monthly. as on 01.10.2020
=> Account may be opened by
(i) a single adult
(ii) Joint Account (Maximum 3 adults)
(iii) Minor above 10 years of age
(iv) A guardian on behalf of a minor/Person of unsound mind.
=> minimum amount 1000/- ,(multiples of 100) maximum NO LIMIT.
=> premature closures are not allowed.
=> NRI’s are not eligible for purchase of NSC/KVP.
=> NC-4(a) is issued to the investor when certificates are not issued immediately.
=> more than one nominee is allowed.
=> all savings certificates are printed at Government of india security press, Nasik.
=> deposits qualify for tax rebate under 80C of IT act.
=> joint account can be opened with two or three adults.
=> at the time of transfer of certificates from one person to another, old certificate 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 postmasters along with his designation stamp and date stamp of post office.
=> sale of pre printed certificates is stopped w.e.f 01.07.2016, passbooks are issued instead of certificates.

06.KISAN VIKAS PATRA (KVP) :-

=> started from 01.04.1988.
=> Account may be opened by
(i) a single adult
(ii) Joint Account (Maximum 3 adults)
(iii) Minor above 10 years of age
(iv) A guardian on behalf of a minor/Person of unsound mind.
=> KVP discontinued in Dec 2011, and re launched on 18.11.2014.
=> present interest rate 6.9%. Amount invested doubles in 124 months ( 10 years and 4 months). as on 01.10.2020
=> minimum amount Rs 1000/- and in multiples of Rs 1000/- . maximum no limit.
=> w.e.f 01.07.2016, there will be no denominations of KVP. KVPs can be issued for minimum of Rs 1000/- and in multiples of Rs 1000/-.
=> KVP certificates can be presented at any post office for encashment.
=> NRI’s are not eligible for purchase of NSC/KVP.
=> NC-4(a) is issued to the investor when certificates are not issued immediately.
=> more than one nominee is allowed.
=> all savings certificates are printed at Government of India security press, Nasik.
=> deposits qualify for tax rebate under 80C of IT act.
=> joint account can be opened with two are three adults.
=> sale of pre printed certificates is stopped w.e.f 01.07.2016, passbooks are issued instead of certificates.
=> any number of certificates can be purchased by the investor.
=> premature closure can allowed after 2.5 Years.

07. PUBLIC PROVIDENT FUND (PPF) :-

=> started from 01.07.1968.
=> present interest rate 7.1% (compounded yearly). as on 01.10.2020
=> maximum period is 15 years, and extended further 5 years.
=> minimum balance required to open PPF account is Rs 500/-, subsequent deposits Rs 100/- and multiples of hundreds, maximum 1.5 Lakhs in a financial year.
=> any number of deposits can be made in a financial year.
=> 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.
=> default fee for PPF account on non maintain minimum balance is Rs 50/-.
=> deposits qualify for tax rebate under 80C of IT act.
=> interest earned from PPF is completely tax free.
=> loan facility available from 3rd financial year.
=> withdrawal is allowed every year from 7th financial year from the year of account opening.
=> PPF account can be opened in a post office which is double handed and above.
=> account can be transferred to SBI and vice versa.
=> joint account can’t be opened.
=> Premature closure is can be allowed after 5 years from the end of the year in which the account was opened subject to the following conditions. 1% interest will be deducted from the date of account opening
(i) In case of life threatening disease of account holder, spouse or dependent children.
(ii) In case of higher education of account holder or dependent children.
(iii) In case of change of resident status of account holder
=> Online Deposit facility is available through Intra Operable Net banking/Mobile Banking..
=> Online Deposit facility is available through IPPB Saving Account.

08. SENIOR CITIEZEN SAVINGS SCHEME (SCSS) :-

=> started from 02.10.2004.
=> present interest rate 7.4%. as on 01.10.2020
=> individual of the age of 60 years or more may open SCSS account.
=> retired defence personnel’s (excluding civilian defence employees) can open SCSS account only on attaining the age of 50 years. Earlier there was no age restriction for those personnel.
=> there shall be only one deposite in SCSS account with multiples of Rs 1000/- and maximum 15 lakhs.
=> maturity period is 5 years.
=> 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.
=> premature closure can be allowed after one year on deduction of 1.5% of the deposit, and 1% deduction after completion of 2 years.
=> 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.
=> A depositer may operate more than one account in individual capacity or jointly with spouse.
=> no age criteria for joint holder ( spouse) in case of SCSS account.
=> after maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format.
=> TDS is deducted at source on interest if the interest amount is more than INR 50,000/- p.a
 Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act,
1961 from 1.4.2007.

09. TIME DEPOSIT (TD) :-

=> Account may be opened by
(i) a single adult
(ii) Joint Account (Maximum 3 adults)
(iii) Minor above 10 years of age
(iv) A guardian on behalf of a minor/Person of unsound mind
=> 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 post office.
=> Any number of accounts can be opened in any post office.
=> Single account can be converted into Joint and Vice Versa.
=> minimum deposit Rs 1000/- and multiples of hundreds.
=> Minor after attaining majority has to apply for conversion of the account in his name.
=> TD account can be extended by giving an application in account office.
=> Interest shall be payable annually, No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
=> The annual interest may be credited to the savings account of the account holder at his option.
=> Premature encashment not allowed before expiry of 6 month, If closed between 6 month to 12 month from date of Opening, Post Office Saving Accounts interest rate will be payable
=> The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
=> Online Account Opening facility is available through Intra Operable Net banking/Mobile Banking.
Present Interest rates are as on 01.10.2020
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