Post Office Saving Schemes
| Product | Tenure | Compounding Frequency | Premature Closure | Lock In Period |
|---|---|---|---|---|
| National Savings Certificates (NSC) (Deposits qualify for deduction under section 80C of Income Tax Act.) | 5 Years | Compounded annually but payable at maturity. | NSC may not be prematurely closed before 5 years except the following conditions: - (i) On the death of a single account, or any or all the account holders in a joint account (ii) On forfeiture by a pledgee being a Gazetted officer. (iii) On order by court NSC may be pledged. |
5 Years |
| Time Deposit Account (TD) | 1,2,3 and 5 Years | Interest payable annually but calculated quarterly. |
(i)No deposit shall be withdrawn before the expiry of six months from the date of deposit. (ii) If TD account closed after 6 month but before 1 year, PO Savings Account Interest rate will be applicable. (iii) If 2/3/5 year TD account prematurely closed after 1 year, interest shall be calculated 2 % less than of TD interest rate (i.e. 1/2/3 years) for completed years, and for part period less than a year, PO Savings Interest rates will be applicable. |
6 Months |
| Monthly Income Scheme Account (MIS) | 5 Years | Payable monthly. |
(i) No deposit shall be withdrawn before the expiry of 1 year from the date of deposit. (ii) If account is closed after 1 year and before 3 year from the date of account opening, a deduction equal to 2% from the principal will be deducted and remaining amount will be paid. (iii) If account closed after 3 year and before 5 year from the date of account opening, a deduction equal to 1% from the principal will be deducted and remaining amount will be paid. |
1 Year |
| Recurring Deposit Account (RD) | 5 Years | Quarterly compounded |
(i) RD Account can be closed prematurely after 3 years from the date of account opening. (ii) PO Savings Account interest rate will be applicable if the account is closed prematurely even one day before maturity. |
3 Years |
| Kisan Vikas Patra (KVP) | N.A. | Compounded annually | After 2 years and 6 months from the date of deposit. | 2 years and 6 months |
