indiapost.gov.in Small Savings Scheme : India Post

Organisation : India Post
Facility : Small Savings Scheme

Small savings scheme : https://www.statusin.in/uploads/20438-SMALLSAVINGSSCHEMES.pdf
Website : https://www.indiapost.gov.in/VAS/Pages/IndiaPosthome.aspx

India Post Small savings scheme

Small savings schemes are designed to provide safe & attractive investment options to the public and at the same time to mobilise resources for development.

Related : India Post Monthly Income Scheme (MIS) Account : www.statusin.in/18869.html

OPERATING AGENCIES :
** These schemes are operated through about 1.54 Lakh post offices throughout the country.
** Public Provident Fund Scheme is also operated through about 8000 branches of public sector banks in addition to the post offices.
** Deposit Schemes for Retiring Employees are operated through selected branches of public sector banks only.

PROMOTION :
** National Savings Organisation (NSO) is responsible for national level promotion of these schemes through publicity campaigns and advertisements in audio, video as well as print media.

Through a large network of over 5 lakh small savings agents working under different categories viz:
** Standardised Agency System (SAS),
** Mahila Pradhan Kshetriya Bachat Yojana (MPKBY),
** Public Provident Fund Agency Scheme,
** Payroll Savings Groups,
** School Savings Banks (Sanchayikas)

** In addition, the Extra Departmental Branch Postmasters (EDBPMs) also help in mobilising savings, especially in rural and remote / far flung areas.

INSTITUTIONAL INVESTMENT IN SMALL SAVINGS SCHEMES :
These schemes being primarily meant for small urban and rural investors; institutions are not eligible to invest in major small savings schemes.

N.R.Is’ INVESTMENT IN SMALL SAVINGS SCHEMES :
The Non-Resident Indians (NRIs.) are not eligible to invest in small savings schemes including Public Provident Fund (PPF) and Deposit Schemes For Retiring Employees.

CURRENT SMALL SAVINGS SCHEMES with MAIN FEATURES:
POST OFFICE SAVINGS ACCOUNTS :
Who can open :
** A single adult or two-three adults jointly,
** A pensioner to receive/credit his monthly pension,
** Group Accounts by Provident Fund, Superannuation Fund or Gratuity Fund,
** Public Account by a local authority/body,
** An employee, contractor, or agent of a government or of a government company or of a university for depositing security amounts,
** A Gazetted Officer or an officer of a government company or corporation or Reserve Bank of India or of a local authority in his official capacity.
** A cooperative society or a cooperative bank for payment of pay, leave salary, pension contribution of government servants on deputation with such society or bank.

Where can be opened :
At any post office.

Deposits:
** Account can be opened with a minimum of Rs. 20.
** Maximum of Rupees One Lakh for single holder and Rs. Two lakhs for joint holders. If depositors have more than one account (single, pension or joint), the balances or shares of balances in all such accounts taken together should not exceed Rs. One Lakh for each of the depositors.

Maturity period / withdrawal :
** There is no lock-in / maturity period prescribed.
** Withdrawals: Any amount subject to keeping a minimum balance of Rs. 50 in simple and Rs. 500 for cheque facility accounts.

Interest :
** Interest at the rate (s) ‘as decided by the Central Government from time to time’, is calculated on monthly balances and credited annually.
** Interest rate applicable w.e.f. 1.3.2001 is 3.5 per cent / per annum for general public.

Pass Book :
Depositor is provided with a pass book with entries of all transactions duly stamped by the post Office.

Silent Accounts :
** An account, not operated during three complete years, shall be treated as ‘Silent Account’.
** A service charge @ Rs. 20 per year is charged on the last day of each year until it is reactivated.
** In a silent account from which after deduction of service charge, the balance becomes NIL, the account stands automatically closed.

Final closure / withdrawal :
Final withdrawal/ closure of account shall be allowed by Sub Postmaster/Extra departmental Sub/Branch Postmaster on obtaining sanction from Head Postmaster.

Tax treatment :
Income tax relief is available on the amount of interest under the provisions of section 80L of Income Tax Act.