SAVINGS ACCOUNTS
Introduction
The Department runs the Savings bank as an agent of the Ministry of Finance. The Ministry of Finance
pays remuneration for this work to the Department for every Savings bank account and savings
certificate account at the rate fixed from time to time.
Small Savings Schemes are very popular among people who want to invest their money in the Govt. run
instruments. These financial instruments provide you secure investment options with guaranteed
returns. In India, Post Offices have reached over a large area. So in remote places, they play the key role
to penetrate financial inclusion.
Different Type of Savings Schemes
1. Savings Bank Account Scheme,2019
2. Recurring Deposit Account Scheme,2019
3. Time Deposit Account scheme,2019
4. Monthly Income Account Scheme,2019
5. Public Provident Fund Scheme,2019
6. Senior Citizen Savings Accounts Scheme,2019
7. Sukanya Samriddhi Account Scheme,2019
8. National Savings Certificate Scheme,2019
9. Kisan Vikas Patra Scheme,2019
10. Mahila Samman Savings Certificate, 2023
Savings Bank Account Scheme,2019
This is the type of account where account holder deposits money frequently and withdraws whenever
needed. This account may be opened with or without cheque book facility.
Salient Features
Individuals can Minimum 4 % per Interest is tax
open Single balance: annum on free up to Rs.
and joint Rs. 500/- individual 10,000/-
accounts; No maximum single and
Provision for limit; joint accounts
regular
deposits and
withdrawals;
Recurring Deposit Account Scheme,2019
Salient Features
Account for a Deposits in The interest No exemptions
period of 5 fixed rate is revised
years; Can be denominations to 6.7 %
extended with every month;
or without Minimum Rs.
deposit; Only 100/- and in
individuals multiples of
either single or Rs. 10/-;
joint can open No limits on
the account. the number of
accounts;
No maximum
limit on
denominations
; Automatic
credit facility
from SB
accounts
available
Time Deposit Account scheme,2019
Salient Features
Fixed Amount Minimum Rs. Interest No IT
can be 1000/- and in compounded exemption
deposited multiples of quarterly, paid except in 5
initially for a Rs. 100/-; No annually; year TD;
specified maximum limit TD 1 6.9% Interest
period; Closed TD 2 7.0% earned is
after TD 3 7.1% taxable
completion of TD 5 7.5%
the specified
period; Only
individual
accounts –
Single or joint
Monthly Income Account Scheme,2019
Salient Features
Fixed amount Minimum Rs. Interest rate No income tax
deposited for a 1000/-; 7.4 % per exemption;
period of 5 Deposits in annum Interest is
years; Interest multiples of payable taxable
can be drawn Rs. 1000/- . monthly;
monthly; Only Maximum Automatic
individual Limit: transfer of
accounts – Single – interest to SB
Single or Joint Rs.9.0 Lakh account
Joint – available
Rs.15 Lakh 62 for 10000/-
Public Provident Fund Scheme,2019
Salient Features
Account for a Minimum Rs. Interest rate is Yearly
period of 15 500/- and 7.1 % investment
years; Can be maximum Rs. per annum. exempt from
closed or 1.5 Lakh- per (compounded income tax up
extended after annum in a annually) to prescribed
maturity financial year; limit as per
subject to In multiple of Section 80C of
conditions; No Rs. 50/- income tax;
court Interest earned
attachment of completely
the balance; exempt from
Loan and tax; Balance
withdrawal exempt from
facilities are wealth tax
available
subject to
conditions
Senior Citizen Savings Accounts Scheme,2019
Salient Features
An individual Minimum - Interest rate is Investment
can open Rs. 1000/-and 8.2 % per qualifies for
single or joint in multiple of annum; tax exemption
account with Rs. 1000/- Interest subject to
spouse only. Maximum – payable conditions;
(i) On attaining Rs. 30 Lakh quarterly Interest
the age of 60 Fixed sum 205 for 10000 earned is
years deposited for 5 taxable
(ii) On years; Can be
retirement- on extend for 3-3
or after age of block years;
55 years &
before age of
60 years;
(iii) Retired
Defence
personnel on
or after age of
50 years ;
Sukanya Samriddhi Account Scheme,2019
Salient Features
Only one Minimum Rate of interest Deposit
Account can be deposit to open is 8.2 % amount
opened by any a/c is Rs. 250/- Maturity–On qualifies for tax
of guardian of and in completion of exemption
a girl child from multiples of Rs. 21 years from under Sec
the birth of the 50/-Maximum date of account 80(c) of income
girl child till in a financial opening or on tax act. Even
she does not year is Rs. 1.5 marriage after interest is also
attain the age lakh. attaining 18 exempted
of ten years Subsequent years of age by
deposit – Any Girl child(within
amount in 01 month
multiple of Rs. before and 03
50/-, but months after
minimum marriage).
deposit for a
year is Rs.
250/-
National Savings Certificate Scheme,2019
Salient Features
National Saving Minimum – Interest rate is Investment
Certificates Rs.1000/- 7.7 % qualify for
Account can be Maximum – No 14490 for exemption
opened for limit 10000/- under Section
Minimum Rs 80C of Income
1000/- & in tax act;
multiples of Rs Interest earned
100/- taken as
maturity period reinvested and
is 5 years; is taxable
Only
individuals can
invest – Single
or Joint
Kisan Vikas Patra Scheme,2019
Salient Features
KVP Account Minimum Rs. Interest rate No income tax
can be opened 1000/-; is 7.5 % exemptions
for Minimum of Maximum – No Investment
Rs 1000/- & in limit doubles in 115
multiples of Rs months
100/-
Investment is
for ___Months
w.e.f.____.Can
be purchased
by an adult for
himself or on
behalf of a
minor or jointly
by adults
Mahila Samman Savings Certificate, 2023
Salient Features
Account can Minimum Rs. Interest rate is No income
be 1000/-; 7.5%. tax
opened by a Maximum – Rs. exemptions
girl or a 200000/-
woman - Gap of 3
through months
minimum between the
Amount Rs. existing
1000/- and any account and
sum in the opening of
multiple of Rs. another
100/- account with in
maximum up maximum limit
to Rs. Two of 2 Lakh
Lakh.
Investment is
for 24 Months.
Know Your Customer (KYC)/AML documents
1. Low Risk Balance up to Rs.50,000/-
2. Medium Risk Balance exceeding Rs.50,000/- but up to Rs.10 lakh
3. High Risk Balance in all accounts and certificates exceed Rs.10 lakh.
ePassbook for POSB schemes
The DoP has launched ePassbook feature for the account holders of POSB schemes. ePassbook is a
feature providing the following services through an online webpage –
1. Balance enquiry
2. Mini statement
3. Full statement
Claim settlement
Types of Claims
• With Nomination
• With legal evidence
Sl. Sanctioning Authority W/o Nomination with legal
No. evidence
1 Time Scale /LSG SPM 50000
2 HSG II SPM/HSG-I SPM and HSG-I/II PM of MDG/HO (All No Limit
Non gazetted Higher Selection Grade)
3 Sr. PM/Chief Postmaster & Director of HO/GPO, No Limit
Divisional Head ( Group A & B)
• Without Nomination / legal evidence (Up to Rs 5 lakh)
Sl. No. Sanctioning Authority With Out Nomination or with out
production of Legal evidence for all type of
saving schemes
1 SPM of Time Scale/ LSG Sub Post offices 50,000
2 SPM/Dy. PM/PM of HSG I & II SO/MDG/HO 100000
( All Non Gazetted)
3 Sr. PM/ SPOs./Dy. CPM/ Dy. SPOs/ Dy. PM 500000
(All Gazetted Gr. B) &
SSPOs/ Chief Post master (All Gazetted Group A
HPO/GPO and Divisions)
