1. This is ideal for small savers and is available for a maximum limit of Rs 4.5 lakh for single account holders and Rs 9 lakh for joint account holders.
2. The interest payable is monthly at the annual rate of 6.6%.
3. The lock-in period is 5 years after which the principal can be withdrawn.
4. While there is no TDS, the scheme doesn’t provide Sec 80C benefits and the interest is taxable.
5. This scheme can also be provided for minors above age of 10 years.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
