Small savings schemes are designed to provide safe and attractive investment options to the public and at the same time to mobilise resources for development.

Kisan Vikas Patra (KVP)

  • Amount Invested doubles in 100 months (8 years & 4 months)
  • Available in denominations of Rs 1,000, 5000, 10,000 and Rs 50,000. Minimum deposit Rs 1000/- and no maximum limit.
  • Certificate can be purchased by an adult for himself or on behalf of a minor or by two adults.
  • KVP can be purchased from any Departmental Post office.
  • Facility of nomination is available.
  • Certificate can be transferred from one person to another and from one post office to another.
  • Certificate can be encashed after 2 & 1/2 years from the date of issue.

Post Office Monthly Income Scheme (MIS)

  • Interest rate of 8.4% per annum payable monthly w.e.f. 01-04-2013
  • Maturity period is 5 years.
  • No Bonus on Maturity w.e.f. 01.12.2011.
  • No tax deduction at source (TDS).
  • No tax rebate is applicable.
  • Minimum investment amount is Rs.1500/- or in multiple thereafter.
  • Maximum amount is Rs. 4.50 lakhs in a single account and Rs.9 lakhs in a joint account.
  • Auto credit facility of monthly interest to saving account if accounts are at the same post office.
  • Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.
  • Non-Resident Indian / HUF cannot open an Account.
  • Minors have a separate limit of investment of Rs. 3 lakhs and the same is not clubbed with the limit of guardian.
  • Facility of premature closure of account after 1 year but on or before 3 years @ 2.00% discount.
  • Deduction of 1% if account is closed prematurely at any time after three years.
  • Suitable scheme for retired employees/ senior citizens and for those who need regular monthly income.

National Savings Certificate (NSC)

  • NSC VIII Issue (5 years) – Interest rate of 8.5% per annum w.e.f. 01-04-2013
  • NSC IX Issue (10 years) - Interest rate of 8.8% per annum w.e.f. 01-04-2013
  • Minimum investment Rs. 100/-. No maximum limit for investment.
  • No tax deduction at source.
  • Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under NSC - section 80C of IT Act.
  • Certificates can be kept as collateral security to get loan from banks.
  • Trust and HUF cannot invest.
  • A single holder type certificate can be purchased by an adult for himself or on behalf of a minor or to a minor.
  • The interest accruing annually but deemed to be reinvested will also qualify for deduction under NSC - section 80C of IT Act.

Public Provident Fund (PPF)

  • Interest rate of 8.7% per annum w.e.f. 01-04-2013.
  • Minimum deposit is 500/- per annum. Maximum deposit is Rs. 1,00,000/- per annum
  • The scheme is for 15 years.
  • Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
  • Interest is completely tax-free.
  • Deposits can be made in lumpsum or in 12 installments.
  • One deposit with a minimum amount of Rs 500/- is mandatory in each financial year.
  • Withdrawal is permissible from 6th financial year.
  • Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
  • Free from court attachment.
  • Non-Resident Indians (NRIs) not eligible.
  • An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.
  • Ideal investment option for both salaried as well as self employed classes.

Post Office Time Deposit Scheme

  • Minimum amount of deposit is Rs 200/- and in multiples of Rs 200/- thereafter. No maximum limit.
  • Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
  • Interest income is taxable.
  • Facility of redeposit on maturity of an account.
  • In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01.12.2011 between 6 months to one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable.
  • 2 year, 3 year or 5 year accounts on or after 01.12.2011 if closed after one year, interest on such deposits shall be calculated at a discount of 1% on the rate specified for respective period as mentioned in the concerned table given under Rule 7 of Post office Time Deposit Rules.
  • Account can be pledged as security against a loan to banks/ Government institutions.
  • Any individual (a single adult or two adults jointly) can open an account.
  • Group Accounts, Institutional Accounts and Misc. account not permissible.
  • Trust, Regimental Fund or Welfare Fund not permissible to invest.

Senior Citizen's Savings Scheme

  • Interest @ 9.2% per annum from the date of deposit on quarterly basis w.e.f. 01-04-2013
  • Minimum deposit is Rs 1000 and multiples thereof. Maximum limit of 15 lakhs.
  • Maturity period is 5 years and can be extended for a further period of 3 years.
  • Age should be 60 years or more, and 55 years or more but less than 60 years who has retired under a Voluntary Retirement Scheme or a Special Voluntary Retirement Scheme on the date of opening of the account within three months from the date of retirement.
  • No age limit for the retired personnel of Defence services provided they fulfill other specified conditions.
  • The account may be opened in individual capacity or jointly with spouse.
  • TDS is deducted at source on interest if the interest amount is more than Rs 10,000/- per annum.
  • Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.
  • Interest can be automatically credited to savings account provided both the accounts stand in the same post office.
  • Premature closure is allowed after one year on deduction of 1.5% of the deposit and after 2 years on deduction of 1%.
  • No withdrawal permitted before the expiry of a period of 5 years from the date of opening of the account.
  • Non-resident Indians (NRIs) and Hindu Undivided Family (HUF) are not eligible to open an account.

Post Office Savings Account

  • Rate of interest 4.0% per annum
  • Minimum amount Rs 50/- in case of non-cheque account, Rs.500/- in case of cheque account.
  • Maximum balance permissible is Rs 1,00,000/- in a single account and Rs 2,00,000/- in a joint account.
  • Interest Tax Free.
  • Any individual can open an account.
  • Cheque facility available.
  • Group Account, Institutional Account, other Accounts like Security Deposit account & Official Capacity account are not permissible.