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In case of death of the depositor before maturity, the account shall be closed
and deposit refunded without any deduction along with interest.
The deposit will carry an interest of 9.20%
per
annum applicable from 1/4/2014 (taxable). The maturity period of the deposit will be five
years, extendable by another three years.
Premature withdrawal after a period of one year
will be allowed, subject to some deductions i.e 1.5 % till two years and 1%
after two years.
The investments in the scheme will be
non-tradable and non-transferable. However, nomination facility will be
available.
Non-Resident Indians and Hindu Undivided
Families are not eligible to invest in the scheme.
Returns
The deposit will carry an
interest of 9.20 % per annum applicable from 1/4/2014 (taxable) payable from the date of deposit of 31st March/30th Sept/31st December in the first instance & thereafter, interest shall be payable on 31st March, 30th June, 30th Sept and 31st December.
In case of Premature closure after one year, there will be deduction of 1.5% interest & after 2 years 1% interest
(deduction from the deposit.).
Advantages
This
Scheme is most beneficial to Senior citizens and provides a high rate of
interest. Although the interest on
the deposit is taxable, the deposits themselves are tax free. As the post office is a department of the government of India, it is a
safe investment. The principal amount is
assured. The investment under this scheme qualify for the benefit of
Section 80C of the Income Tax Act, 1961 from 1-4-2007.
How to Start Post office Senior Citizens
account
A Senior Citizen Account can be opened through any designated post
office through out the country. The account can be opened by any individual 60
years of age and above either individually, or jointly (with spouse only).
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