National Savings Schemes - All Schemes At a glance

National Savings Schemes  - All Schemes At a glance

National Savings Schemes At a glance

S. N.	Name of Scheme	Maturity period	Features
1	Post Office Saving Account	No period prescribed	Minimum Rs. 500/- & No maximum limit. Interest up to Rs. 10000/- is tax free.
2	National Savings Recurring Deposit Account	5 Years	Minimum Rs. 100/- per month. No maximum limit. Can be prematurely closed after three years from the date of opening of the account. Can also be extended after maturity with/without deposit.
3	National Savings Time Deposit Account	1 Year 2 Year 3 Year 5 Year	Minimum Rs. 1000/- and in multiples thereof. No Maximum Limit. Interest calculated on quarterly basis and payable annually. Tax rebate under Sec-80C of I.T. Act is available in 5 Year TD Account.
4	National Savings (Monthly Income Account) Scheme	5 Years	Minimum Rs. 1000/- & in the multiple thereof. Maximum Rs. 4.5 Lakhs in Single Account and Rs. 9 Lakhs in Joint. Interest payable every month. Can be prematurely closed after completion of one year from date of opening of account.
5	Senior Citizen Savings Scheme	5 Years	Minimum Rs. 1000/- & in the multiples thereof with maximum of Rs. 15 Lakhs. Interest payable quarterly. Can also be prematurely closed. Account can be extended on maturity. Income tax rebate under sec.80C of IT Act is available.
6	National Saving certificate (VIII issue)	5Years	Minimum Rs. 1000/- and no maximum limit. Tax rebate under sec-80C of IT Act is available.
7	Kisan Vikas Patra	Variable	Minimum Rs. 1000/- and no maximum limit. Money doubles on maturity. Can be prematurely encashed after 2 ½ years at prescribed rates.
8	Public Provident Fund Scheme	15 Years	Minimum Rs. 500/- & Maximum Rs. 150000/- in a F.Y. Tax free interest. Income tax rebate under sec.80C of IT Act is available. Facility of withdrawal and loan is available after prescribed period. Can also be prematurely closed subject to conditions. Account can be extended in block period of five years.
9	Sukanya Samriddhi Account	21 Years	Minimum Rs. 250/- & Maximum Rs. 150000/- in a F.Y. Tax free interest. Income tax rebate under sec.80C of IT Act is available. 50% of balance can be withdrawn for higher education after attaining the age of 18 years or passing tenth standard, whichever is earlier.

The Post Office Savings Account

INTRODUCTION:

• Minimum deposit ₹500.

• No maximum deposit limit.

• A person may open the account in his own name individually or jointly with an adult person.

• A person may open the account on behalf of a minor of whom he is the guardian or a person of unsound mind.

• A minor who has attained the age of 10 years may open the account independently.

• Interest in the account up to ₹ 10,000 qualifies for deduction from Income in a financial year under section 80 TTA of Income Tax Act.

• Facility of cheque is available.

National Savings Recurring Deposit Account Scheme

INTRODUCTION:

• Minimum ₹100/- per month and any amount in the multiples of ₹10/-. No Maximum Limit.

• An account can be opened by an adult in his own name or upto three adults jointly.

• Guardian may open an account on behalf of a minor or a person of unsound mind.

• Advance deposits can be made at the option of the depositor for 6 months or 12 months and earn rebate.

• Account matures in 5 years.

• Withdrawal to the extent 50% of the amount of existing balance is permissible after one year of the opening of account.

• Maturity value allowed on RD accounts restricted to that of ₹100/- denomination in case of death of depositor subject to fulfillment of certain conditions.

• An account can be continued with deposits or without deposits after maturity for another five years.

• Account can be closed prematurely after 3 years with simple interest at the rate of POSA.

National Savings Time Deposit Account Scheme

INTRODUCTION:

• Four category of Time Deposit Account available – 1 year, 2 year, 3 year & 5 year

• Minimum deposit ₹1000/- and thereafter in the multiples of ₹100.

• No maximum deposit limit.

• A guardian may open an account on behalf of a minor or a person of unsound mind.

• An account can be closed after six months. Where deposits in the account is withdrawn prematurely after six months but before one year, simple interest at POSA rate shall be payable.

• Deposits in 5 year Time Deposit qualify for deduction u/s 80-C of Income Tax Act.

National Savings (Monthly Income Account) Scheme

INTRODUCTION:

• Account matures in 5 years.

• Minimum ₹ 1000/- & in the multiples thereof. Maximum ₹ 4.5 Lakhs in single account and ₹ 9 lakhs in Joint Account.

• A depositor may operate more than one account under this scheme subject to the ceiling of maximum amount, which may be invested in single, or joint account.

• A guardian may also open an account on behalf of a minor or a person of an unsound mind.

• Account can be closed prematurely after one year but before the expiry of three years on deduction of 2% of the deposit. In case the account is closed after expiry of three years, 1% of the deposit shall be deducted.

Senior Citizens’ Savings Scheme

INTRODUCTION:

• Minimum deposit ₹1000/- & in the multiples thereof with maximum deposit of ₹15 lacs.

• An individual who has attained the age of 60 years or above on the date of opening of an account or an individual who has attained the age of 55 years or more but less than 60 years and has retired under Superannuation, VRS or Special VRS, can open an account.

• Retired personnel of Defence Services (excluding Civilian Defence employees) may open an account on attaining the age of fifty years subject to the fulfilment of other specified conditions.

• A depositor may open an account individually or jointly with spouse.

• Interest shall be payable from the date of deposit to 31st March/ 30th June/30th September/31st December on 1st working day of April/July/October/January as the case may be, in the first instance and thereafter, interest shall be payable on 1st working day of April/July/October/January.

• The account can be closed after expiry of 5 years from the date of opening of account.

• The depositor may extend the account for further period of 3 years.

• Premature closure is permissible subject to certain conditions.

• Deposits in SCSS qualify for deduction u/s 80-C of Income Tax Act.

National Savings Certificate-VIII Issue INTRODUCTION: Account matures in 5 years Minimum deposit ₹1000/- and thereafter in multiple of ₹100. No maximum deposit limit. A single holder type account may be opened by an adult for himself or on behalf of a minor. A single holder type account may also be opened by a minor on attaining the age of 10 years. Joint 'A' Type account may be opened by up to three adults payable to both the holders jointly or to the survivor. Joint 'B' Type account may be opened by up to three adults payable to either of the survivor. Loan facility available by pledging with the banks. Kisan Vikas Patra Scheme INTRODUCTION: Minimum ₹ 1000/- and thereafter in multiples of ₹100. No maximum deposit limit. A single holder type account may be opened by by an adult for himself or on behalf of a minor. A single holder type account may also be opened by a minor on attaining the age of 10 years. Joint 'A' Type account may be opened by up to three adults payable to both the holders jointly or to the survivor. Joint 'B' Type account may be opened by up to three adults payable to either of the survivor. Account can be opened in Post offices and in authorised banks. KVP can be transferred from one person to another and from one post office to another. KVP can be encashed after 2 and half years from the date of investment at the following rates. Money Doubles on Maturity. Sukanya Samriddhi Account Scheme INTRODUCTION: Minimum deposit ₹ 250/- Maximum deposit ₹ 1.5 Lakh in a financial year. Account can be opened in the name of a girl child till she attains the age of 10 years. Only one account can be opened in the name of a girl child. Account can be opened in Post offices and in authorised banks. Withdrawal shall be allowed for the purpose of higher education of the Account holder to meet education expenses. The account can be prematurely closed in case of marriage of girl child after her attaining the age of 18 years. The account can be transferred anywhere in India from one Post office/Bank to another. The account shall mature on completion of a period of 21 years from the date of opening of account. Deposit qualifies for deduction under Sec.80-C of I.T.Act. Interest earned in the account is free from Income Tax under Section -10 of I.T.Act.