Savings account is an account in a bank where you get deposit money, get your salary and earn interest on the balances in the account. Savings accounts are thus ideal for daily expenses as they can be accessed anytime.

• Money is safe
• Funds are readily available
• Will accrue interest over time – hence higher earning potential compared  to keeping money safe at home
• Open an account with very little amount
• Bill payments can be automated

• Low interest rates
• Eating into your deposits and using them for non essential expenses as there is no lock in period
• Minimum account balance maintenance charges

• Fixed Deposit (or FD) is a financial instrument provided by the banks  which provides investors with a fixed rate of interest for a fixed period.
• FDs have a higher rate of interest compared to a savings account.
• An FD can be opened for a period from 15 days to 5 years.
• The returns from the FD are fixed and capital is guaranteed.
• TDS is deducted at 10%, if the interest paid to the customer at any bank  exceeds Rs.40,000 in a financial year.
• Income from FDs is fully taxable as income at the rate applicable to the  investor.
• To enjoy full benefits of the FD, the deposited amount must not be  withdrawn before it attains maturity.
  • A penalty would have to be paid to withdraw the FD amount before its maturity.  The penalty to be paid on premature withdrawal of FD varies depending on the deposit amount and also varies from bank to bank. It is generally between 0.5% to 1% of the interest amount.

Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of Reserve Bank Of India (RBI) which was established for the purpose of providing insurance of deposits.

DICGC insures all bank deposits like Fixed Deposits, Recurring Deposit up to a limit of Rs 5,00,000/- in a bank.

Deposit Insurance comes into play in two situations –

1. a) if your bank goes into liquidation and
2. b) if your bank is reconstructed or merged with another bank.

• Loan against a Fixed Deposit is a type of secured loan where you can pledge your fixed deposit as security and get a loan against the same.
• This facility is available to both individual FD’s and FD’s with joint holding.
• FDs in the name of minor do not have the facility to get loan against FD.
• Investor who have invested in 5 year tax saving FD also cannot avail this facility.
• Loan against FD should be repaid before the maturity of the Fixed Deposit.
• The advantage of these types of loans is that you need not break the FD or go for premature withdrawal and hence would not lose the interest on the FD.

It is important to add a nominee to all your investments.

In Fixed Deposits, a nominee is a custodian of the FD account. The nominee directs the court on what needs to be done to the FD amount in case of death of the account holder. The nominee would have to provide identification proof  at the time of claiming the deposits.

Any account in which there have not been any transactions for two years or more (apart from interest credited or maintenance fees charged) is considered as dormant or inoperative. If any account has been inoperative for 10 years or more, then as per RBI guidelines, the money in these accounts can be transferred to  Depositor’s Education and Awareness Fund (DEAF). This includes money in bank accounts, FD’s, RD’s, etc.

Banks try to inform the investors but in cases where contact details are not updated, these amounts are transferred to DEAF as they are unclaimed money and the amount fetches interest at the rates specified by RBI and not at the rate at which the deposits were made.

As per RBI guidelines, every bank is supposed to show details of unclaimed money on their bank’s website. If your details are there, then you can approach the bank branch with the deposit receipts, KYC documents (address and identity proof). A legal heir or nominee can claim the unclaimed amount by submitting his KYC documents, deposit receipts and copy of death certificate of the account holder.

All details will be verified by bank and the amount would then be released.

• Recurring Deposit (RD) is a kind of Term Deposit offered by banks in  India to deposit a fixed amount every month into their recurring deposit  account and earn interest at the rate applicable to the fixed deposits.
• Minimum monthly deposit of Rs 500/-
• Minimum period for RD is 6 months and is extendable in multiples of 3  months up to a maximum permissible period of 10 years
• TDS is deducted at 10%, if the interest paid to the customer at any bank  exceeds Rs. 40,000 in a financial year.
• Income from RD is fully taxable as income at the rate applicable to the  investor.

Dematerialized account or Demat account is an account to hold financial securities (debt and equity) in electronic form. The financial instruments need no longer be held in paper form and hence the risks associated with paper instruments like loss or damage of certificates are reduced.

A depository is an institution which holds many pre-verified shares in electronic mode and offers efficient settlement of transactions. In India, the two designated depositories are National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

A depository participant is an intermediary between the investor and the depository. It is typically a financial institution like banks, brokers, etc and acts as an agent of the depository to make the services available to the investor.

• Easy and convenient way to hold securities
• Safer than paper-shares (earlier risks associated with physical certificates such as bad delivery, fake securities, thefts etc. are mostly eliminated)
• Reduced paperwork for transfer of securities
• Reduced transaction cost
• Change in address recorded with a depository participantgets registered with all companies in which investor holds securities eliminating the need to correspond with each of them separately.
• A single Demat account can hold investments in both equityand debt instruments.

• Account may be opened by
  (i) a single adult
  (ii) Joint Account (Maximum 2 adults)
  (iii) Minor above 10 years of age
  (iv) A guardian on behalf of a minor/Person of unsound mind
• Account can be opened by cash only.
• Minimum amount for opening account is Rs 500/-
• Minimum balance to be maintained in an account is INR 500/- , if balance Rs. 500 not maintained, a maintenance fee of one hundred (100) rupees shall be deducted from the account on the last working day of each financial year and after deduction of the account maintenance fee, if the balance in the account becomes nil, the account shall stand automatically closed.
• Cheque facility/ATM facility are available.
• Cheque facility can be taken in an existing account also.
• Interest earned is Tax Free up to INR 10,000/- per year from financial year 2012-13.
• Nomination facility is available at the time of opening and also after opening of account.
• Account can be transferred from one post office to another.
• One account can be opened in one post office.
• At least one transaction of deposit or withdrawal in three financial years is necessary to keep the account active, else account became silent (Dormant).
• Minor after attaining majority has to apply for conversion of the account in his name.
• Online Fund transfer between Post Office Savings Accounts/Stop Cheque/Transaction View facility is available through Intra Operable Netbanking/Mobile Banking.

• Account may be opened by
  (i) a single adult
  (ii) Joint Account (Maximum 3 adults)
  (iii) Minor above 10 years of age
  (iv) A guardian on behalf of a minor/Person of unsound mind
• Account can be opened by cash / Cheque and in case of Cheque the date of deposit shall be date of clearance of Cheque.
• Minimum amount for opening account is Rs 100 per month or any amount in multiples of Rs 10/-. No maximum limit.
• Nomination facility is available at the time of opening and also after opening of account.
• Premature closure is allowed after three years from the date of opening of the account and interest at the rate applicable from time to time to the Post Office Savings Account shall be payable on such premature closure of account.
• Account can be transferred from one post office to another.
• Any number of accounts can be opened in any post office.
• Subsequent deposit can be made up to 15th day of next month if account is opened up to 15th of a calendar month and up to last working day of next month if account is opened between 16th day and last working day of a calendar month.
• If subsequent deposit is not made up to the prescribed day, a default fee is charged for each default, default fee @ 1 Rs for every 100 rupee shall be charged. After 4 regular defaults, the account becomes discontinued and can be revived in two months but if the same is not revived within this period, no further deposit can be made.
• If in any RD account, there is monthly default amount, the depositor has to first pay the defaulted monthly deposit with default fee and then pay the current month deposit. This will be applicable for both CBS and non CBS.
• There is rebate on advance deposit of at least 6 installments, Rs. 10 for 6 month and Rs. 40 for 12 months Rebate will be paid for denomination of Rs. 100.
• Minor after attaining majority has to apply for conversion of the account in his name.
• One loan up to 50% of the balance allowed after one year. It may be repaid in one lumpsum along with interest at the prescribed rate at any time during the currency of the account.
• Protected Savings Scheme is applicable for the account of denomination Rs 100/-.
• Online Deposit facility is available through Intra Operable Netbanking/Mobile Banking.
• Online Deposit facility is available through IPPB Saving Account.
• Date of maturity will be 5 years after date of opening. Account can be extended for further 5 year by giving application at account office.

• Account may be opened by
  (i) a single adult
  (ii) Joint Account (Maximum 3 adults)
  (iii) Minor above 10 yearsof age
  (iv) A guardian on behalf of a minor/Person of unsound mind
• Account can be opened by cash /Cheque and in case of Cheque the date of realization of cheque in Govt. account shall be date of opening of account.
• Minimum amount for opening account is Rs 1000/- and in multiples of Rs 100/- thereafter. No maximum limit.
• Nomination facility is available at the time of opening and also after opening of account.
• Account can be transferred from one post office to another.
• Any number of accounts can be opened in any post office.
• Single account can be converted into Joint and Vice Versa.
• Minor after attaining majority has to apply for conversion of the account in his name.
• TD account can be extended by giving an application in account office.
• Interest shall be payable annually, No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
• The annual interest may be credited to the savings account of the account holder at his option.
• Premature encashment not allowed before expiry of 6 month, If closed between 6 month to 12 month from date of Opening, Post Office Saving Accounts interest rate will be payable.
• The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
• Online Account Opening facility is available through Intra Operable Netbanking/Mobile Banking.

• Account may be opened by
  (i) a single adult
  (ii) Joint Account (Maximum 3 adults)
  (iii) Minor above 10 years of age
  (iv) A guardian on behalf of a minor/Person of unsound mind.
• Account can be opened by cash/Cheque and in case of Cheque the date of realization of Cheque in Govt. account shall be date of opening of account.
• In multiples of INR 1000/-.
• Maximum investment limit is INR 4.5 lakh in single account and INR 9 lakh in joint account.
• An individual can invest maximum INR 4.5 lakh in MIS (including his share in joint accounts).
• For calculation of share of an individual in joint account, each joint holder have equal share in each joint account.
• Nomination facility is available at the time of opening and also after opening of account.
• Account can be transferred from one post office to another.
• Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts (Rs. 4.5 Lakh).
• Single account can be converted into Joint and Vice Versa.
• Minor after attaining majority has to apply for conversion of the account in his name.
• Maturity period is 5 years.
• Interest can be drawn through auto credit into savings account standing at same post office,orECS./In case of MIS accounts standing at CBS Post offices, monthly interest can be credited into savings account standing at any CBS Post offices.
• Can be prematurely en-cashed after one year but before 3 years at the discount of 2% of the deposit and after 3 years at the discount of 1% of the deposit. (Discount means deduction from the deposit.)
• A bonus of 5% on principal amount is admissible on maturity in respect of MIS accounts opened on or after 8.12.07 and up to 30.11.2011. No bonus is payable on the deposits made on or after 1.12.2011.
• Interest shall be payable to the account holder on completion of a month from the date of deposit.
• If the interest payable every month is not claimed by the account holder such interest shall not earn any additional interest.

• An individual of the Age of 60 years or more may open the account.
• An individual of the age of 55 years or more but less than 60 years who has retired on superannuation or under VRS can also open account subject to the condition that the account is opened within one month of receipt of retirement benefits and amount should not exceed the amount of retirement benefits.
• A retired personnel of Defence Services (excluding Civilian Defence employees) shall be eligible to open an account under this Scheme on attaining the age of 50 years subject to the fulfilment of other specified conditions.
• Maturity period is 5 years.
• There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh.
• A depositor may operate more than one account in individual capacity or jointly with spouse (husband/wife).
• Account can be opened by cash for the amount below INR 1 lakh and for INR 1 Lakh and above by Cheque only.
• In case of Cheque, the date of realization of Cheque in Govt. account shall be date of opening of account.
• Nomination facility is available at the time of opening and also after opening of account.
• Account can be transferred from one post office to another.
• Any number of accounts can be opened in any post office subject to maximum investment limit by adding balance in all accounts.
• Joint account can be opened with spouse only and first depositor in Joint account is the investor.
• In case of SCSS accounts, quarterly interest shall be payable on 1st working day of April, July, October and January. It will be applicable at all CBS Post Offices.
• *Quarterly interest of SCSS accounts standing at CBS Post offices can be credited in any savings account standing at any other CBS post offices.
• Premature closure is allowed,
  (i) If closed before 1 year , no interest will be payable, if paid already will be recovered.
  (ii) after one year on deduction of an amount equal to1.5% of the deposit to be deducted
  (iii) after 2 years 1% of the deposit to be deducted.
• After maturity, the account can be extended for further three years within one year of the maturity by giving application in prescribed format. In such cases, account can be closed at any time after expiry of one year of extension without any deduction.
• TDS is deducted at source on interest if the interest amount is more than INR 50,000/- p.a.
• Investment under this scheme qualifies for the benefit of Section 80C of the Income Tax Act.

• An individual can open account with INR 500/- and a deposit minimum of INR 500/- in a financial year and maximum INR 1,50,000/- (including amount deposited in minor account opened on behalf of guardian).
• Deposits can be made in lump-sum or in 12 installments.
• Any account in which the account holder, having deposited five hundred rupees in the initial year, fails to deposit the minimum amount in the following years, shall be treated as discontinued and that account may be revived during its maturity period on payment of a fee of fifty rupees along with arrears of minimum deposit of five hundred rupees for each year of default.
• Joint account cannot be opened and only one account can be opened by a citizen in India.
• Account can be opened by cash / Cheque and In case of Cheque, the date of realization of Cheque in Govt. account shall be date of opening of account.
• Nomination facility is available at the time of opening and also after opening of account. Account can be transferred from one post office to another.
• The subscriber can open another account in the name of minors but subject to maximum investment limit by adding balance in all accounts.
• Maturity period is 15 years but the same can be extended within one year of maturity for further 5 years and so on.
• Maturity value can be retained without extension and without further deposits also.
• Premature closure is can be allowed after 5 years from the end of the year in which the account was opened subject to the following conditions. 1% interest will be deducted from the date of account opening.
  (i) In case of life threatening disease of account holder, spouse or dependent children.
  (ii) In case of higher education of account holder or dependent children.
  (iii) In case of change of resident status of account holder.
• Deposits qualify for deduction from income under Sec. 80C of IT Act.
• Interest is completely tax-free.
• Online Deposit facility is available through Intra Operable Netbanking/Mobile Banking.
• Online Deposit facility is available through IPPB Saving Account.
• Loan can be taken after the expiry of one year from the end of the year in which the initial subscription was made but before expiry of five years from the end of the year in which the initial subscription was made.
• Withdrawal can be taken after the expiry of five years from the end of the year in which the account was opened.

• Certificate may be purchased by
  (i) a single adult
  (ii) Joint A Account (Maximum 3 adults)
  (ii) Joint B Account (Maximum 3 adults)
  (iv) Minor above 10 years of age
  (iv) An adult on behalf of a minor.
  (v) A guardian on behalf of a person of unsound mind
• NSC will be issued in the shape of Passbook w.e.f. 01.07.2016
• Minimum of Rs. 1000/- and in multiples of Rs. 100/- .No Maximum Limit.
• Deposits qualify for tax rebate under Sec. 80C of IT Act.
• The interest accruing annually but deemed to be reinvested under Section 80C of IT Act.
• In case of NSC VIII, transfer of certificates from one person to another can be done only once from date of issue to date of maturity.
• At the time of transfer of Certificates from one person to another, old certificates will not be discharged. Name of old holder shall be rounded and name of new holder shall be written on the old certificate and on the purchase application (in case of non-CBS Post offices) under dated signatures of the authorized Postmaster along with his designation stamp and date stamp of Post office.

• Certificate can be purchased by
  (i) a single adult
  (ii) Joint A Account (Maximum 3 adults)
  (ii) Joint B Account (Maximum 3 adults)
  (iv) Minor above 10 years of age
  (i) An adult on behalf of a minor.
  (ii) A guardian on behalf of a person of unsound mind
• KVP will be issued in the shape of Passbook w.e.f. 01.07.2016.
• Minimum of Rs. 1000/- and in multiples of Rs. 100/- No Maximum Limit.
• KVP can be purchased from any Departmental Post office.
• Facility of nomination is available.
• Certificate can be transferred from one person to another and from one post office to another.
• Certificate can be encashed after 2 & 1/2 years from the date of issue.

• A legal Guardian/Natural Guardian can open account in the name of Girl Child.
• A guardian can open only one account in the name of one girl child and maximum two accounts in the name of two different Girl children.
• Account can be opened up to age of 10 years only from the date of birth.
• Minimum amount INR. 250/-and Maximum INR. 1,50,000/- in a financial year. Subsequent deposit in multiple of INR 50/-.
• Deposits can be made in lump-sum. No limit on number of deposits either in a month or in a Financial year.
• If minimum Rs 250/- is not deposited in a financial year, account will become discontinued and can be revived with a penalty of Rs 50/- per year with minimum amount required for deposit for that year.
• Deposits may be made in the account till the completion of a period of fifteen years from the date of opening of the account
• Partial withdrawal, maximum up to 50% of balance standing at the end of the preceding financial year can be taken after Account holder’s attaining age of 18 years.
• Account can be closed after completion of 21 years.
• Normal Premature closure will be allowed after completion of 18 years on the occasion of marriage (1 month before and 3 months from date of marriage)
• Online Deposit facility is available through Intra Operable Netbanking and IPPB Saving Account.