Under this scheme, there shall be a single deposit in the account in multiple of Rs 1000 up to maximum of Rs 15 lakh. The basic criteria for opening this account is the age of the account holder be 60 years or more. However, an individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.
- Maturity period is 5 years.
- A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).
- Account can be transferred from one post office to another.
- Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
- Joint account can be opened with spouse only and first depositor in joint account is the investor.
- Premature closure is allowed after one year on deduction of an amount equal to 1.5 per cent of the deposit and after 2 years 1 per cent of the deposit.
- TDS is deducted at source on interest if the interest amount is more than Rs 10,000 per annum.
- Investment under this scheme qualifies for the benefit under Section 80C of the Income Tax Act, 1961.
Source: India Post