I.   Duration

Five years

II.   Rate of Interest

7.5% quaterly compounded

III.  Where to Invest ?

In any Head post office/Sub post office

IV.  Who can invest ?

A.        A single adult

B.       Two adults jointly, the amount due on the account being payable.

(i).   to both jointly or survivor

(ii).   to either of them or survivor

C.       A guardian on behalf of a minor or a person of unsound mind.

D.       A minor who has attained the age of ten years in his own name.

V.   How much to invest ?

Minimum Rs. 10/- and there after multiples of Rs. 5/- without limit.

VI.   Deposits and Withdrawls

A.     Deposits

(i).     The deposit made at the time of opening of the account shall be the denomination of the account.

(ii).    Subsequent monthly deposit shall be made before the end of the calendar month and shall be equal to the first deposit.

B.            Withdrawals

(i).     Premature withdrawls after 3 years from the date of opening of the account.

(ii).    50% of the deposits made in the account may be allowed as loan after the account has been in operation for at least one year.

VII.   Rebate on advance deposits

(i).     Deposits :-

          Six or more but not exceeding eleven deposits made in a calender month.

         Rebate :-

         Rs. 10/- for an account of Rs. 100/- denomination

(i).     Deposits :-

          Twelve or more deposits made in a calender month.

         Rebate :-

         Rs. 40/- for every twelve deposits  of Rs. 100/- denomination

VIII.   Nomination facility

Available

IX.   Extension of accounts after maturity period

Continue account may be for a further period of five years and make monthly deposits during such extended period.

X.    Retention of amount of repayment beyond maturity period.

The Depositor may at his option. continue the account and retain in it the amount of repayment due for a further period upto maximum of five years without making any fresh deposits.

XI. IncomeTax benefits

No Tax deduction at source.