1. Recurring Deposit

Tenure: 5 years

Interest rate: 8.3 Percent

The Recurring Deposit Account can be opened by cash/cheque and in case of cheque the date of deposit shall be date of presentation of cheque. On maturity, the term can be extended up to 5 years. Apart from these facilities the account holder can appoint a nominee at the time of opening and also after opening of an account. Account can be transferred from one post office to another and any number of accounts can be opened in any post office. Incase the account holder deposits 6 installments in advance, they are also entitled with a rebate. Investor is also given a flexible window of up to 15 days to deposit the sum.

2. Senior Citizens’ Saving Scheme

Tenure: 5 Years

Interest Rate: 9.2 Percent

An individual of the Age of 60 years or more may open the account. Individuals taking superannuation or VRS can also open an account, but the account should be opened within one month of receipt of retirement benefits.

The maturity period is 5 years and the account can be opened by cash for the amount below 1 lakh and above by cheque only. The depositor can operate more than one account in individual capacity or jointly with spouse (husband/wife). Interest can be drawn through auto credit into savings account standing at same post office, through PDCs or Money Order.

The maximum amount limit per individual is 15 lakh and the investments are eligible for deduction under Section 80C

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