Eligibility
Individual must be Resident citizen of India
A Single Holder
Joint Account (up to three adults)
Joint ‘A’ type, to be operated by all the depositors or the surviving depositors jointly.
Joint ‘B’ type, to be operated by any of the depositors or the surviving depositors separately
A guardian on behalf of minor
A guardian on behalf of person of unsound mind (now termed as Authorised Account)
A minor who has attained the age of ten years
Note: An individual may open any number of accounts.
Note: Upon reaching the age of 18 years, account holders must submit a new Account Opening Form (AOF) and fresh KYC documents at their Post Office to convert their minor account into an adult account.
Note: Accounts can also be opened through e-Banking facility. It is to be noted that Post Office Savings Account is a prerequisite for availing internet banking facility.
(Please Click here or visit ebanking[dot]indiapost[dot]gov[dot]in)
Deposits
Minimum – Rs. 1000 and any sum in multiple of Rs. 100
Maximum – No limit.
Deposits qualify for deduction under section 80C of Income Tax Act
Pledging of Account
Please refer Para 6
Transfer/pledging can be made to the following authorities.
The President of India/Governor of a State.
RBI/Scheduled Bank/Co-operative Society/Co-operative Bank.
Corporation (public/private)/Govt. Company/Local Authority.
Housing finance company approved by National Housing Bank and notified by the central government.
Premature Closure
Please refer Para 7
The account shall not be closed before maturity except in the following cases, namely:
On the death of the account holder in a single account, or any or all the account holders in a joint account.
On forfeiture by a pledgee being a Gazetted Officer, when the pledge is in conformity with this Scheme.
When ordered by a court.
Where an account is prematurely closed before the expiry of one year from the date of deposit, only principal amount shall be payable
If the account is prematurely closed after the expiry of one year but before the expiry of 3 years from the date of deposit, interest on principal amount at the rate applicable to the Post Office Savings Account from time to time for the complete months for which the account has been held, shall be payable
If an account is prematurely closed after the expiry of three years from the date of the opening, the amount payable, inclusive of interest accrued under for a deposit of one thousand rupees and at a proportionate rate for other amounts of deposits, shall be as per Para 7(4)
Transfer of account
An account may be transferred from one individual to another, subject to the condition that the transferee is eligible to open an account under this Scheme, in the following cases, namely:
on the death of account in case of single account or all the account holders in a joint account, the amount shall be transferred to the legal heirs or the nominees, as the case may be.
on the order of the court
on pledging
in the event of the death of any of the account holders in a joint account, the account shall be transferred in the name of the surviving account holder or account holders, as the case may be
Payment on death of account holder
In the event of death of the depositor of a single account or of all the depositors in a joint account, the eligible balance in the account shall be payable as specified in Para 9(2) to (6).
Maturity
The deposit shall mature on completion of 5 years from the date of the deposit.
The interest shall accrue to the holder(s) of the certificate at the end of each year and the interest so accrued at the end of each year upto the end of the fourth year shall be deemed to have been reinvested on behalf of the holder and aggregated with the amount of face value of the certificate.
A certificate of annual interest accrual can be obtained from the post office on request or downloaded via DoP Internet Banking. (Refer SB Order No. 08/2025)
References
National Savings Certificate VIII Issue Rules 2019
Important: Depositors are advised to refer the scheme rules notified by Government from time to time available at egazette[dot]gov[dot]in and www[dot]nsiindia[dot]gov[dot]in or available on www[dot]indiapost[dot]gov[dot]in in the form of SB Orders under the tab Employee Corner or Right to information.
