An investment scheme where an individual can open account with Rs 100 but has to deposit minimum of Rs 500 in a financial year and maximum of Rs 1.5 lakh. Deposits can be made in lump-sum or in 12 equal instalments.
Key Features:

There is no provision for joint account.
Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another.
The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
Maturity value can be retained without extension and without further deposits also.
Premature closure is not allowed before 15 years.
Deposits qualify for deduction from income under Section 80C of the Income Tax Act, 1961.
Interest is completely tax-free.
Withdrawal is permissible every year from 7th financial year from the year of opening account. Loan facility can be availed by the account holder from the third financial year.

Source: India Post