Salient Features
- Minimum amount of deposit is Rs.200/-.
- No maximum limit.
- Account can be closed after 6 months but before one year without any interestp.
- Facility of redeposit on maturity of an account.
- No interest is payable on undrawn interest amount.
- Account can be opened by an individual, two adults jointly and minor through guardian.
- A Minor who has attained the age of 10 years can open the account in his/her own name to be operated directly.
- Non Resident Indian / HUF cannot open the account.
- Any number of accounts can be opened.
- Two, three and Five years accounts can be closed after one year at a discounted rate of interest.
- Deposits not drawn on maturity are eligible to saving account interest rate for a maximum period of two years.
- Account can be pledged as security against a loan to banks/ Government institutions.
- Accounts are transferable from one Post office to any Post office in India.
- Rebate under section 80-C is not admissible.
- Interest income is taxable.
- Deposits are exempt from wealth tax.
- No T.D.S.
- Nomination facility available.
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