Interest @ 9% per annum under this scheme.

Every year interest will be disbursed on 31st March, 30th June and 31st December on tri-monthly basis.

If the investor wishes the interest amount can be directly deposited in his savings account. But such amount should not exceed the amount of maximum deposit amount inclusive of the interest. The interest thus collected will not be given additional interest.

The interest received on deposits will be considered taxable under Income Tax.

Investor will be issued Pass Book and the details of the deposit amount as well as Interest received / receivable will be furnished. Investor will have to present the pass book in the post office / bank at least once a year.

Any Indian Citizen who is 60 yrs or above in age at the time of opening the account can invest.

Among the persons between the age group of 55 to 60, who have taken the retirement under Voluntary Retirement Scheme or Special Voluntary Retirement Scheme can invest within 3 months of the retirement date. For such investment they will have to furnish the details such as Certificate of Tenure of service, Benefits at the time of retirement from the employer, along with the application.

Since this scheme is only for Indian Residents, NRIs and HUF cannot invest in the cheme.

Investors will have to furnish the documentary proof of their age, two photographs, Proof of residence and PAN (PAN – for Rs.50,000/- or more investment) number details along with the application.

The deposit account can be opened in India in any post office savings bank (P.O.S.B.) or in any authorized bank handling of PPF account activity.

One or more accounts can be opened in the multiples of Rs. 1000/- amount.

Cannot deposit more than Rs.15 lacs amount in all accounts. In the event of deposit exceeding 15 lacs, no interest will be given on the additional amount.

Can invest by cash up to Rs. 1 lac. The investment of amount more than 1 lac will have to be done by Cheque /Draft.

Investor can open individual account or joint account with life partner (Husband/Wife).

Investor will have facility of nomination in the account.

In one month only one account can be opened in one post office / bank.

Under this scheme the duration of deposit account will be 5 years.

If the investor desires, during the year after maturity, he can apply and extend the period for further 3 years at prevailing rate of interest.

Under this scheme during the 5 years no withdrawal will be allowed under normal circumstances. But after one year and before two years, in the event of closing of the deposit account, 1.5% of the deposit amount will be deducted. The account which has been extended for three years after 5 years maturity, if closed after one year, no amount will be deducted from the due withdrawal.

In the event of investor’s death, no amount will be deducted from the withdrawal at the time of closing the account.

If there is a change in the account holder’s address, the deposit account of this scheme can be transferred from one post office / bank to another post office / bank. But if the deposit amount is Rs.1 lac or more, a transfer fee of Rs.5 per every lac will be payable.