3 Any number of accounts can be opened in any post office 4 Account can be

3 any number of accounts can be opened in any post

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3. Any number of accounts can be opened in any post office. 4. Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account. Minor after attaining majority has to apply for conversion of the account in his name. 5. Joint account can be opened by two adults. Single account can be converted into Joint and Vice Versa. 6. Non-resident Indians are not permitted to open Post Office time deposit accounts. Group accounts, institutional accounts, trust funds, regimental funds and also welfare funds are not allowed in this scheme. 7. The interest rates are calculated on a quarterly basis and will be paid on an annual basis. 8. The account shall be automatically renewed on maturity in CBS based post offices for the same period it was opened initially at the rate of interest prevailing on date of such renewal. 9. If the account is opened in P.O. not having CBS then repayment of amount will become due and interest shall be allowed on the amount due for a maximum period of 2 years from the date of maturity to the date of repayment of the deposit subject to conditions – (i) The interest shall be simple and calculated at rate of savings account type. (ii) Any part of period less than 1 month will be ignored. (iii) The interest shall be paid to depositor in lump sum at the time of repayment of amount due. 10. A minimum of 6 months must have passed from the date of the first deposit made for Premature Withdrawal . If a deposit is withdrawn prematurely after six months but before one year, the basic rate of interest mentioned in the post office savings account from time to time is payable. However, after the expiry
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of one year from the date of deposit, the rate of interest is payable only for the years and months completed from the date of deposit to the date of withdrawal and is 1% less than the rate of interest specified by the post office savings account for the complete tenure. 11. If there are only one or two surviving nominees or legal heirs, he or they may continue the account and receive repayment of the amount inclusive of interest as if the account has been opened by them. Comparable F.D. Rates (Mostly monthly compounding so better off)- IDFC Bank, Karur Vysya Bank, Laksmi Vilas Bank, Tamiland Mercentile Bank Ltd, Bandhan Bank, Deutsche Bank, RBL Bank, DCB Bank, Shriram Transport Finance, Bajaj Finance, Mahindra & Mahindra, LIC Housing Finance, PNB Housing Finance, KTDFC.
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Monthly Income Scheme (MIS) RATE 7.3% p.a. monthly paid MATURITY 5 Years PREMATURE WITHDRAWAL Can be prematurely en-cashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. TAX BENEFITS No Tax Benefit under 80C. Tax on interest after Rs 10,000. MIN-MAX LIMIT MIN - Rs 1500 in multiples of Rs 1500 MAX – Rs 4,50,000 in case of Single Type A/c.
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  • Spring '14
  • Saving Schemes India

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