Page 95 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Personal Financial Planning

Notes Where to open an account?
At designated branches of Public Sector Banks throughout the country.
Maturity Period
(i) The account matures for closure after 3 years.

(ii) Account can be continued with the whole or a part of the deposits after maturity.
Nomination
(i) The account can be opened individually or jointly with his/her spouse.
(ii) Nomination facility is available in respect of individual accounts.

Deposit Limits
One time deposit with a minimum of ` 1000 to the maximum of the total retirement
benefits in multiple of one thousand rupees.

Retirement Benefits Means
(i) Balance at the credit of employee in any of the Government Provident Funds.
(ii) Retirement/Superannuation gratuity.
(iii) Commuted value of pension.

(iv) Cash equivalent of leave.
(v) Savings element of Government insurance scheme payable to the employee on
retirement, and Arrears of retirement benefits, as defined in (i) to (v) above on
implementation of Fifth Pay Commission’s recommendations.
Withdrawals
Whole or a part of the deposits can be withdrawn at any time after expiry of the normal
maturity period of 3 years.
Premature Withdrawal
(i) Not permissible before completion of one year.

(ii) Permissible after completion of one year and before completion of three years on
reduced interest rate.
Interest

Interest at the rate, notified by the Central Government from time to time, is credited and
payable on half yearly basis at any time after 30th June and 31st December every year.
Present rate of interest is Seven per cent / per annum since: 1st March, 2003.

Transferability
Account can be transferred from one public sector bank to another public sector bank
operating the scheme due to change of residence.

Pass Book
Depositor is provided with a pass book with entries of the deposited amount, interest etc.
and other particulars by the bank.

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