Question1 : Who is eligible for opening this account?
Answer 1: Following class of persons can join the scheme
- Any resident Indian citizen having 60 years age can open this account.
- Any resident Indian citizen who took premature retirement on voluntary retirement or special scheme or on superannuation can open this account just after attaining 55 years.
- Any non civil defence personnel without any age restriction can open this account.
Question 2 : What is the frequency of interest calculation and rate?
Answer : Interest rate is 9 % computed quarterly.
Question 3: What is the maximum amount of investment permissible?
Answer 3 : Maxmum Rs 15 Lakh can be invested.
Question 4: What is the tenure of this account?
Answer 4: The account is locked for 5 years and can be extended for 3 years.
Question 5: Is premature withdrawl possible ?
Answer 5: Yes after one year only , but there is penalty.
Question 6: Can this account be transferred to other’s name or sold?
Answer 6: Neither transfer nor trade of account is possible. Only nomination can be done.
Question 7: Where can this account be opened and where is the form available?
Answer 7 : The account can be opened in any post office or nationalised banks. Application forms are vailable with them.
Question 8 : Can it be opened in Joint Name ?
Answer 8: Yes, it can be opened in single or joint name.
Question 9: Is the interest paid is taxable?
Answer 9: Yes, the interest is taxable and tax shall also be deducted at source if interest in a year exceeds Rs5000 (Rs 10,000 in case of Sr. Citizen) . However , 15 G or 15H (in case you are 65 years
old) if submitted , can save you from TDS.
Question 10 : Can this account be transferred from one deposit office to another?
Answer 10: Yes, it can be transferred from one bank to another bank or post office to another post office.