Scheme

Rate of Interest

Interest Payable

Investment Limit

Period of Investment

Premature Withdrawal / Closure

Remarks

Post Office Monthly Income Scheme

8%P.A

Monthly

Min Rs 1000/- Max Rs 3 Lacs per Individual

6 years

Deduction of 3.5% after 1 Yr. Nil after 3 years.

(a) A saving A/c can be opened for crediting of interest. (b) Recurring Deposit can be opened for crediting the int if not required.

5 Yrs Recurring Deposit Scheme

7.5% P.A

On maturity

Min Rs 10/- P.M. Max No limit

5 years

Not allowed.

Rs 100/- PM grows to Rs 7289/- after 5 yrs in Post Office.

Post Office Time Deposits

1 Yr 6.25% P.A 2 Yr-6.50%P.A

3 Yr- 7.25% P.A

5 Yr- 7.50% P.A

Annually Compounded half yearly

Min Rs 200/- Max No limit

1 to 5 years

Allowed with some deduction.

Only for individuals.

National Savings Certificates VII Issue

8.16% P.A

On Maturity

Min Rs 100/- and no upper limit

6 years

Pre-mature withdrawal is not possible

(a) Tax benefit under Sec 80 (C) upto Rs 1 lac. (b) Available through Post Offices.

Kisan Vikas Patra

Amount invested doubles interest rate works out to 8.4%P.A

On maturity

Min Rs 100/- and no upper limit

8 years and 7 months

An option of premature encashment exists.

(a) Rs 1000/- grows to Rs 2000/- after 8 yrs & 7 months. (b) No tax benefit. No wealth Tax and No TDS. (c) Income is Taxable. (d) Available through Post Office.

Govt of India 8% Tax savings Bonds

8% P.A

Half Yearly

Min Rs 1000/- Max no limit

6 Years

Not Allowed.

(a) Individuals, Colleges, Universities, Research Institutions can apply. (b) Available through designated Branches of SBI & PNB.

Sr Citizens Savings Scheme (for VRS optees age 55 yrs. For others 60 yrs). For Defence service personnel retiring on superannuation No age limit

9% P.A

Qtly

Min Rs 1000/- Max Rs 15 lac per indl

5 years

Deduction of 1.5% after 1 yrs. 1% after 2 years.

(a) A saving A/c can be opened for crediting of int. Income is Taxable. (b) Available through Post Offices and designated Branches of nationalised banks.