Tenure of the scheme
5 years which can be extended by 3 more years
Rate of interest
The interest is paid as per the rate declared by Government of lndia from time to time. Present rate of interest is 8.7% p.a. w.e.f. 01.10.2018 to 31.12.2018.
Interest is Compounded Quaterly and Paid
Frequency of computing interest
Interest is fully taxable.
Whether TDS is applicable
Yes, Tax will be deducted at source.
Investment to be in multiples of
Maximum investment limit
Rs. 15 lakh
Minimum eligible age for investment
60 years (55 years for those who have retired on superannuation or under a voluntary or special voluntary scheme). The retired personnel of Defence Services (excluding Civilian Defence Employees) shall be eligible to invest on attaining age of 50 years subject to the fulfilment of other specified conditions.
Premature withdrawal facility
Available after one year of holding but with penalty
Not transferable to others
Nomination facility is available
Modes of holding
Accounts can be held both in single and joint holding modes. Joint holding is allowed but only with spouse.
Application forms available with
At any of the Bank’s Branches
Applicability to NRI, PIO and HUFs
Non resident Indians, Persons of Indian Origin and Hindu Undivided Family are not eligible to open an account under the scheme.
Transfer from one deposit office to another
Transfer of account from one deposit office to another in case of change of residence is permitted