Interest payable annually but calculated on quarterly basis (w.e.f.01.03.2003)
Rates of interest
|1 year Account||
|2 year Account||
|3 year Account||
|5 year Account||
Who can Open ?
Account may be opened by an individual, i.e., Single, Joint A/B (not more than two adults) Trust, Regimental Fund and Welfare Fund.
Interest is calculated on compounded quarterly basis and payable annually. The investment under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
Investment Limits & Denominations
Minimum Rs. 50/- and it's multiples.
No maximum limit.
Account may be opened by an individual, Trust, Regimental Fund and Welfare Fund.
2, 3 and 5 year accounts can be closed after one year at a discount.
Account can be closed after 6 months but before 1 year without interest.
The amount of interest earned is tax free under Section 80-L of Income Tax Act.