Tenure of the Scheme |
5 years, which can be extended by 3 more years |
Interest Rate |
9% p.a. |
Frequency of computing interest |
Quarterly |
Tax aspects |
Interest is fully taxable |
Investment to be in multiples of |
Rs 1,000 |
Maximum Investment Limit |
Rs 15 lakhs |
Minimum eligible age |
60 yeas ( 55 years for those who have retired under a Voluntary or a Special Voluntary Scheme) |
Facility of premature withdrawals |
Available after 1 year of holding but with penalty |
Transferability feature |
Not available |
Tradability |
Not available. |
Nomination facility |
Available |
Mode of Holding |
Generally single, joint mode is permitted but only spouses will be allowed to open accounts jointly with beneficiaries. |
Availability of applications forms |
Through the Post Offices and Designated Branches of Public Sector Banks. |