Account can be opened by an individual, two/three adults jointly, and a minor through a guardian.
A minor having attained 10 years of age can open an account in his/her own name directly.
A separate account is opened for each deposit.
Any number of accounts can be opened subject to the maximum prescribed limit.
Facility of automatic credit of monthly interest to saving account if accounts are at the same post office.
Facility of premature closure of account after 1 year to 3 years @ 2.00% discount.
Deduction of 1% if account is closed prematurely at any time after three years.
Facility of reinvestment on maturity of an account.
Interest not withdrawn does not carry any interest.
Maturity proceeds not drawn are eligible to earn savings account interest rate for a maximum period of two years.
Account is transferable to any Post Office in India, free of cost.
Nomination facility is available.
Rebate under section 80 C is not admissible.
Most suitable scheme for senior citizens and for those who need regular monthly income.
Deposits are exempt from Wealth Tax.
