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Directorate of Small Savings

Why the Small Savings Schemes are so popular ?

  • All the Small Savings Schemes are directly operated by the Government of India through excellent network of Post Offices spread over the country.
  • The rate of return is very attractive and there is no market risk whatsoever.
  • Pass Books / Certificates can be easily transferred from one Post Office to another.
  • Duplicate Pass Books / Certificates are issued, if the original one is lost or damaged.
  • All the existing Small Savings Schemes have nomination facility.
  • There will be no deduction of Income Tax at source in respect of all the existing schemes except Senior Citizen Savings Scheme.
  • Most of the Small Savings Schemes can be operated through Agents.

Invest through Small Savings Agents

Investors may avail the assistance of the Government appointed Agents to deposit their money. Those Agents will collect money from the office / residence of the investors and will deposit the same in Post Offices on their behalf. They will also collect Certificate / Pass Books from the Post Offices and deliver the same to the investors.

Important Note: While opening the Pass Book of RD A/c and depositing monthly installments through MPKBY agents use of ASLAAS-5 card is must, while depositing money in other Small Savings Scheme through SAS agents use of Authorized Agent Receipt Book (AARB) is must. The concerned agent should take money with a proper receipt given to the depositor, while the latter will sign the ASLAAS-5 / AARB at the time of realization of his / her Pass Book / Certificate.

Always keep your Pass Book / Certificate in your own custody. Kindly withdraw premature or maturity value from the Post Offices either personally or through a responsible person duly authorized. An investor may purchase a certificate or open an account directly at the Post Offices.

Available Schemes

  • Monthly Income Scheme
  • Recurring Deposit Scheme
  • Savings Bank Account
  • Senior Citizens Savings Scheme
  • Time Deposits Scheme
  • Public Provident Fund
  • Kisan Vikas Patra
  • National Savings Certificate

Monthly Income Scheme of Post Office ( 8% Interest Payable Monthly )

Opening of Account: A Monthly Income Scheme may be opened by depositing Rs. 1500 or multiplies thereof. Any number of accounts may be opened. The total deposit shall not however, exceed Rs. 4,50,000.00 in case of a Single Account and Rs. 9,00,000.00 in case of a Joint Account.

Account can be opened in any departmental Post Office and can be transferred from one Post Office to another.

Deposit may be made in cash or by cheque or by demand draft.

Payment of Interest: Deposit under monthly income scheme shall bear interest at the rate of 8% per annum payable monthly.

If an account holder so desires, his monthly interest may automatically be transferred to his Savings Bank Account at the same Post Office subject to the condition that by so transferring, the interest, maximum limit on balance in the Savings Bank Account is not exceeded.

Premature Closure of Account: An investor may, at any time, after expiry of one year from the date of opening of the account, close the same and withdraw the entire deposited amount. If any amount is withdrawn before 3 years, an amount equal to 2 per cent of the deposit shall be deducted.

If premature withdrawal is made after 3 years from the date of deposit, there shall be a deduction of 1 per cent of the deposit.

In case of death of a depositor before maturity, account may be closed and deposit refunded along with interest up to the month preceding the month in which refund is made.

Payment of Bonus : On maturity after 6 years, 5% of the deposit shall be paid as Bonus along with the amount initially deposit (w.e.f. 08.12.2007)

Illustration : If an investor deposits Rs. 60,000.00 under the scheme, say, on 17th August 2008, he will get interest of Rs. 400.00 of 17th of each month starting from 17th September, 2008 and up to 17th August, 2014.

Amount payable on deposit of Rs. 60,000.00


Rs. 400.00 in each month x 72 month

Rs. 28,800.00

Bonus at the End

Rs. 3,000.00

Refund of Deposit


Rs. 60,000.00

Telephone Number



Rs. 91,800.00

Recurring Deposit Scheme

Under the scheme, a fixed amount is to be deposited each month for five years. The matured amount with interest will be paid immediately thereafter.

How to Open Account: This account can be opened by a single adult or two adults jointly or a minor who has attained the age of 10 years, or a guardian on behalf of a minor.

Monthly deposits may be made in multiples of Rs. 5 subject to a minimum of Rs. 10.

A depositor may have any number of accounts in his own name or jointly with others. There is no ceiling on deposits. Monthly installments can be paid in advance and in that case an attractive rebate is allowed.

Account may be opened through authorized Agents under Mahila Prodhan Kshetriya Bachat Yojana (MPKBY).

Rate of Interest: The following chart shows the amount to be paid to an investor after the maturity period of 5 years.

Monthly installments Rs.

Total deposit in 5 years Rs.

Amount payable after maturity Rs.










The investors may, at his option, continue the account for a further period up to maximum of five years beyond the maturity period.

Loan Facility: Loan up to half of the deposit may be taken after one year and before maturity. This must be repaid together with interest in one or more installments. Loan not repaid is deducted together with interest from the maturity value.

Life insurance Benefit: In case of death of a depositor, his legal heir or nominee becomes entitled to get immediately the full maturity value of the account / accounts subject to the ceiling of the maturity value of an account of denomination of Rs. 50, provided

  • the account is not a discontinued one,
  • twenty-four months have elapsed from the date of opening of the account, and
  • the age of the depositor at the time of opening of the account was between 18 and 53 years.

Saving Banks Account

A savings account may be opened with only Rs. 50. Further deposit into the account may be low as Rs. 5.

Accounts can be opened by an individual, or jointly by 2/3 adults. Accounts may also be opened in the names of School Sanchayika.

Maximum ceiling of deposits in a Single Account is Rs. 1,00,000 and in a Joint Account Rs. 2,00,000. There is no ceiling on deposits into accounts opened in the name of Sanchayika and other Funds.

The rate of interest is 3.5% per annum in case of Single and Joint Accounts.

Cheque book facility is available at all the Head Post Offices and most of the Sub-Post Offices provided a minimum balance of Rs. 500 is maintained in the account.

Note : Interest is completely tax-free.

Senior Citizen Saving Scheme

Who can open an account : The account may be opened by an individual, who has attained the age of 60 years or above on the date of opening of the account. An individual who has attained the age of 55 or more but less than 60 years and has retired under Voluntary Retirement Scheme on the date of opening of the account can also open an account, within three months from the date of retirement.

How to open an account : A depositor may open account in any departmental Post Office, o any branches of S.B.I or in any of the branches of the Public Sector Banks which are dealing with the Public Provident Fund (PPF) Scheme. An individual may open one or more account in the multiple of Rs. 1000, subject to a maximum limit of Rs. 15 lakh. Deposits may be made in cash for an amount less than one lakh. But deposits of one lakh or more shall be made in cheque. The account may be opened individually or jointly with spouse. It is not necessary for the spouse to be of 60 years or 55 years, as the case may be.

Rate of interest and its withdrawal : Deposit made under this Scheme shall bear interest at the rate of 9% per annum payable quarterly. The interest is payable on 31st March, 30th June, 30th September, 31st December.

If an account holder so desires, his quarterly interest may automatically be transferred to his Savings Bank Account at the same Post Office subject to the condition that by so transferring the interest amount, the maximum limit of deposits in the savings account is not exceeded. If the interest is not claimed by the depositor, interest shall not earn additional interest.

Maturity Period : Maturity period of the Scheme is 5 years. The depositor may extend the account for a further period of 3 years within a period of one year after the maturity period of 5 years. In the event of death of a depositor, the account may be closed and the entire amount will be payable to the nomine. In case of joint account, the spouse may continue the account.

Premature Closure of Account : Premature closure of account is permitted after one year. A deduction of an amount of 1½% of the deposit shall be made if the account is closed after the expiry of one year and if the account is closed after two years the deduction will be 1%.

Time Deposits Scheme

This is actually a fixed deposit scheme with much higher rate of interest. Deposit may be for 1, 2, 3 and 5 years.

How to Open an Account : Account under the scheme can be opened by an adult or jointly by two individuals or by a minor who has attained the age of 10 years. There are provisions for accepting deposits from School Sanchayika Fund. Different accounts for different maturity periods may be opened in one name. Deposits may be made of Rs. 50 or multiples thereof without any upper limit.

Rate of Interest : The present rates of interest per annum on different fixed maturity periods are as follows:

Maturity period

Interest (Compounded quarterly)

Maturity period

Interest (Compounded quarterly)

1 – year


3 – year


2 – year


5 – year


Premature Closure of Account : Depositors may, after the expiry of a period of one year from the date of opening of the account, close the account prematurely. In that case interest payable will be less than the normal rate.

Public Provident Fund

Deposits in this account quality for deduction under section 80(C) of the Income Tax Act.

Interest Earned is completely free of Income Tax : Deposits in this accounts are not subject to attachment under an order or a decree of court and are also free of Wealth Tax.

Opening of Account : Public Provident Fund Account can be opened by any adult in his / her own name or as guardian of a minor.

Such account can be opened in all Head Post Offices, specified Sub-Post Offices, all branches of the State Bank of India and selected branches of other Nationalized Banks.

The scheme is particularly useful to secure the future of self-employed persons like doctors, legal practitioners, artists, actors, businessmen, etc. Other may also open the account.

An account can be opened with Rs. 500 only but the minimum deposit in a financial year must be Rs. 500. Total deposit during a financial year is, however, limited to Rs. 70,000 to be deposited in not more than 12 installments.

Rate of Interest : Deposits are payable on maturity along with interest at rates declared by the Government from time to time. The last declared rate is 8% per annum compounded annually.

Loans and Final Withdrawal : In 3rd year – from the year of opening the account e.g if the account is opened during the year 2009-10 the first loan can be taken during the year 2011-12. Amount of loan restricted to 25% of balance in the account as on 31.3.2010 in the above case. Repayment in lump sum or in convenient installments of not more than 36. No loan can be obtained after the end 5th year following the expiry of the year in which the initial subscription was made . Only 2 loans are permissible.

One withdrawal during any one year- between 7th and 16th year.

Quantum of Withdrawal : 50% of the balance at the end of 4th year immediately preceding the year of the withdrawal or at the end of the preceding year whichever is lower. No reason needs to be stated for making withdrawals. The amount of withdrawal is not repayable.

Illustration : If an account is opened in 2009-10, and if any one wants to take loan, in that case the first loan can be taken during 2011-12 and will be limited to 25% of the balance as on 31.03.2010. The first withdrawal in the aforesaid account will be admissible during 2015-16 and the amount of withdrawal will be limited to 50% of the balance as on 31.03.2012 or 31.03.2015 whichever is lower.

Maturity Period : This normal maturity period is 15 years from the close of the financial year in which the initial subscription has been made. An account, on the expiry of 15 years, may be extended for a block period of 5 years at a time.

Kisan Vikas Patra (Money doubles on maturity)

Who can Purchase : Kissan Vikas Patra (KVP) can be purchased by an individual, jointly by two individuals.

Kisan Vikas Patras are available in all departmental Post Offices in denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000, Rs. 10,000. Certificates of Rs. 50,000 denomination are also available in all Head Post Offices. There is no maximum limit on the investment in K.V.P.

Rate of Interest : Deposit doubles in 8 year 7 months.

Liquidity : Kissan Vikas Patra can be encashed at any time after expiry of 2½ years from the date of issue of the Patra.

Amount payable, on a certificate of Rs. 1000

Time of encashment

Amount Payable

(in Rs.)

Time of encashment

Amount Payable

(in Rs.)

After 2 ½ years


After 5 ½ years


After 3 years


After 6 years


After 3 ½ years


After 6 ½ years


After 4 years


After 7 years


After 4 ½ years


After 7 ½ years


After 5 years


After 8 years


[Payment should be made at proportionate rates for other denominations.]

How to Encash : Kisan Vikas Patras can be encashed at the Post Office of its issue. This can also be encashed at any other Post Office, if the officer-in-charge of that Post Office is satisfied on production of Identity Slip or on verification from the Post Office of its issue that the person, presenting the certificate for encashment, is entitled thereto.

Other Benefits : Kisan Vikas Patras can be pledged with the Public Works Deptt., Govt. of West Bengal as security deposit and State Lottery, Govt. of West Bengal

Identity Slip will be issued to the depositors on request.

Duplicate Certificate : A duplicate KVP may be issued if the same is lost, stolen, destroyed, mutilated or defaced, provided satisfactory evidence is produced about such loss; theft, destruction mutilation or defacement.

National Saving Certificate (VIII ISSUE)

Who can Purchase : An Adult for himself or on behalf of a minor, jointly by two adults, a minor.

How to Purchase : Certificates in denominations of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 & Rs. 10,000 may be purchased from any departmental Post Office. In additional to cash, locally executed cheques, pay order or demand drafts drawn in favour of the Post Master are also accepted.

Rate of Interest and Tax Benefit : Interest is compounded half yearly and paid after the maturity period of 6 years along with the principal Rs. 1000 shall become Rs. 1601 on maturity.

The scheme is beneficial to the tax payers. The Deposited amount and the accrued interest for the first 5 years is qualified for tax relief u/s 80(C) of I.T. Act.

Interest accrued each year on a certificate of Rs. 10,000 are follows: [if purchased in the year 2008-09]

Financial year

Interest accruable Rs.

Financial year

Interest accruable Rs.
















Encashment : A certificate can be encashed at the Post Office of its issue. A certificate may also be encashed at any other Post Office if the officer-in-charge of the Post Office is satisfied on verification from the office of its registration that the person presenting the certificate for encashment is entitled thereto.

  • Local Post Office / Authorized Agent / Savings Development Officer / Block Development Officer.
  • Deputy Director, Small Savings.



Phone No.

Cooch Behar

New Town, Cooch Behar



Hakimpara, Jalpaiguri



29, Haren Mukherjee Road, Siliguri .



Ramkrishna Colony, Malda


Dakshin Dinajpur

Chalk Bhabani, Balurghat



Babulbona Road, Berhampore



New Collectorate Building, Suri



Indian Red Cross Society Building,D.L. Road, Bowbazar,Krishnanagar,Nadia



City Center Commercial Estate, Durgapur



Purta Bhawan, Burdwan



Stadium Gallery, Bankura



Small Savings Information Center, Purulia


Paschim Medinipur

Rangamati, Midnapore

03222- 275474

Purba Medinipur

Hospital More, Tamluk



Pipulpati, Chinsura



64, Panchanantala Road, Howrah


North 24 Parganas

Old Court Building, Sadar Bazar, Barrackpore


South 24 Parganas

New Administrative Building, Collectorate Compound, Alipore



Jessop Building (Ground Floor) 63, Netaji Subhas Road, Kolkata -  700001,

(033) 2262-5895

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