Senior Citizen's Saving Scheme - 2004

OBJECTIVE OF THE SCHEME We are all well aware that interest rate on Small Saving Scheme has been reduced to 5% in the last four years. The decline in interest rate was initiated from 1t January 2000. The interest rate on 31-12-1999 in Monthly Income Scheme was 13% which has come down to 8% with effect form 1.3.2003. The decrease in the interest rate has negative impact on the life of Senior Citizens. The dwindling interest income was cause of concern and hardship for them on the living conditions of the Senior Citizens. The interest income is a life time benefit for the senior citizens. The Budget for 2004-2005 presented in Parliament had two beneficiary aspects, as for as small Saving Schemes are concerned. The first one is that rats of interest on small savings which were unlikely to be expected to be reduced have been kept stable with no change in rate of interest in any Post Office scheme. The second beneficiary aspect was the introduction of Senior Citizen Saving Scheme-2004 with a higher rate of interest to any other small savings scheme which has come into operation from 2nd August 2004. The main objective of the scheme is to provide a relief to the senior citizens and to check the further decline in their interest income.

POST OFFICE SAVINGS BANK

Minimum amount Rs20/- in case of non- cheque account, Rs.500/- in case of cheque account. Minimum balance of Rs.500/- is to be maintained for a cheque account. Account is opened with cash only. Maximum balance permissible Rs. 1,00,000/- in a single account and 2,00,000/- in Joint account. Two/Three adults, individuals, minor through guardian. A Minor having 10 years of age can also open an account directly. One individual account and one joint account can only be opened at a post office.