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Government Of Assam Finance

Small Savings for Financial Security

Post Office Savings Account
With a minimum amount of Rs 20, an individual (or a few individuals in case of joint account) can open his/her/their postal savings account. The minimum balance that needs to be maintained in a non-cheque facility account is Rs 50 and with cheque facility it is Rs 500. Interest earned from an account, up to Rs 10,000 per annum, is tax free.

Key Features:

  • Account can be transferred from one post office to another.
  • Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
  • Joint account can be opened by two or three adults.
  • At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active.
  • Single account can be converted into joint and Vice Versa.
  • Minor after attaining majority has to apply for conversion of the account in his/her name.
  • Inter Post office transactions can be done between CBS post offices.
  • ATM/Debit Cards can be issued to Savings Account holders (having prescribed minimum balance on the day of issue of card) of CBS Post offices.

Recurring Deposit Account
A recurring deposit account can be opened with a minimum investment of Rs 10 per month or any amount in multiples of Rs 5. There is no maximum limit. Nomination facility is available at the time of opening and also after opening of account.

Key Features:

  • Account can be transferred from one post office to another.
  • Any number of accounts can be opened in any post office.
  • Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
  • Joint account can be opened by two adults.
  • There is rebate on advance deposit of at least 6 instalments.
  • Single account can be converted into Joint and Vice Versa.
  • Minor after attaining majority has to apply for conversion of the account in his name.

Time Deposit Account
Time Deposit Account can be opened in four time-bound terms — 1-year, 2-year, 3-year and 5-year. An individual can open this account with a minimum amount of Rs 200 and in multiple thereof., with no maximum limit.

Key Features:

  • Account can be transferred from one post office to another.
  • Any number of accounts can be opened in any post office.
  • Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
  • Joint account can be opened by two adults.
  • Single account can be converted into Joint and Vice Versa.
  • Minor after attaining majority has to apply for conversion of the account in his name.
  • The investment under 5-year Time Deposit Scheme qualifies for the benefit under Section 80C of the Income Tax Act, 1961.

Monthly Income Scheme (MIS) Account
A popular scheme where the account holder fix deposits a sum starting from Rs 1,500 to maximum of Rs 4.5 lakh for single account holders and Rs 9 lakh in joint account holders and the interest from the amount is paid back every month.

Key Features:

  • For calculation of share of an individual in joint account, each joint holder have equal share in each joint account.
  • Nomination facility is available at the time of opening and also after opening of account.
  • Account can be transferred from one post office to another.
  • Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
  • Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
  • Joint account can be opened by two or three adults.
  • All joint account holders have equal share in each joint account.
  • Single account can be converted into Joint and Vice Versa.
  • Minor after attaining majority has to apply for conversion of the account in his name.
  • Maturity period is 5 years.
  • The deposit can be prematurely en-cashed after one year but before 3 years at the discount of 2 per cent of the deposit and after 3 years at the discount of 1 per cent of the deposit. (Discount means deduction from the deposit.)

Public Provident Fund (PPF) Account
An investment scheme where an individual can open account with Rs 100 but has to deposit minimum of Rs 500 in a financial year and maximum of Rs 1.5 lakh. Deposits can be made in lump-sum or in 12 equal instalments.

Key Features:

  • There is no provision for joint account.
  • Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another.
  • The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
  • Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
  • Maturity value can be retained without extension and without further deposits also.
  • Premature closure is not allowed before 15 years.
  • Deposits qualify for deduction from income under Section 80C of the Income Tax Act, 1961.
  • Interest is completely tax-free.
  • Withdrawal is permissible every year from 7th financial year from the year of opening account. Loan facility can be availed by the account holder from the third financial year.

National Savings Certificates (NSC) (VIII Issue)
This hugely popular scheme has been specially designed with income tax benefits for both salaried professionals and businessmen.

Key Features:

  • No maximum limit for investment.
  • No Tax deduction at source.
  • Certificates can be kept as collateral security to get loan from banks.
  • Investment up to Rs 1 lakh per annum qualifies for income tax rebate under Section 80C of the Income Tax Act, 1961.
  • A single holder type certificate can be purchased by, an adult for himself or on behalf of a minor or by a minor.

Senior Citizen Savings Scheme (SCSS) Account
Under this scheme, there shall be a single deposit in the account in multiple of Rs 1000 up to maximum of Rs 15 lakh. The basic criteria for opening this account is the age of the account holder be 60 years or more. However, an individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.

Key Features:

  • Maturity period is 5 years.
  • A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).
  • Account can be transferred from one post office to another.
  • Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
  • Joint account can be opened with spouse only and first depositor in joint account is the investor.
  • Premature closure is allowed after one year on deduction of an amount equal to 1.5 per cent of the deposit and after 2 years 1 per cent of the deposit.
  • TDS is deducted at source on interest if the interest amount is more than Rs 10,000 per annum.
  • Investment under this scheme qualifies for the benefit under Section 80C of the Income Tax Act, 1961.

Kisan Vikas Patra (KVP)
An investment scheme where the amount invested doubles in 110 months (9 years & 2 months). It is available in form of investment certificates, in denominations of Rs 1,000, 5000, 10,000 and 50,000.
Key Features:

  • 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.

Sukanya Samriddhi Account
It is a saving scheme specially designed for the parents of a girl child. The scheme was launched by Prime Minister Narendra Modi in January 2015, as a part of the Beti Bachao, Beti Padhao campaign.

Key Features:

  • The account can be opened at any post office or branches of authorised commercial banks.
  • Investment of minimum Rs 1000 and maximum Rs 1.5 lakh in a financial year. Subsequent deposits in multiple of Rs 100.
  • No limit on number of deposits either in a month or in a Financial Year.
  • A legal guardian/natural guardian can open account in the name of girl child.
  • A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different girl children.
  • Account can be opened up to age of 10 years only from the date of birth.
  • Partial withdrawal, maximum up to 50 per cent of balance standing at the end of the preceding financial year can be taken after account holder attaining age of 18 years.
  • Account can be closed after completion of 21 years.
  • Normal premature closure will be allowed after completion of 18 years, provided that girl is married.

Source: India Post