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Deposit scheme for retiring public sector employees in India is open to retired employees of Public Sector Undertakings (PSUs)

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Deposit Scheme for Retiring Public Sector Employees

This scheme is open to retired / retiring employees of Public Sector Undertakings, Institutions, and Corporations. The account can be opened at designated branches of Public Sector Banks throughout the country.

Minimum deposit limit to open the account is Rs 1000, while the maximum limit equals total retirement benefits in multiple of one thousand rupees.

Retirement benefits means:

Balance at the credit of employee in any of the Government Provident Funds
Retirement / Superannuation gratuity
Commuted value of pension
Cash equivalent of leave
Savings element of Government insurance scheme payable to the employee on retirement.

The account can be opened individually or jointly with his / her spouse. The account matures for closure after three years. Account can be continued with the whole or a part of the deposits after maturity. Premature withdrawal is permissible after completion of one year and before completion of three years on reduced interest rate.

Interest at the rate, notified by the Central Government from time to time, is credited and payable on half yearly basis. Present rate of interest is 7% per annum. Interest accrued / credited / paid is fully tax-free and amount deposited under the scheme is free from wealth tax.