These are negotiable saving instruments that provide interest income similar to bonds but do not provide any tax relief to the investor.

RATE OF RETURN:
9.5 %, compounded annually.

TAX CONSIDERATIONS:
Interest does not qualify for any tax concession. No TDS on interest.

MODE OF ACCOUNT-HOLDING:
An IVP can be purchased by
a. an individual adult as a single person account
b. two adults in a joint mode, or
c. by a guardian, on behalf of the minor who has attained the age of 10 years in his own name.

INVESTMENT LIMITS:
The certificates are available in the denomination (maturity value) of Rs 200, Rs 500, Rs 1,000 and Rs 5,000. Their initial value will be Rs 100. Rs 250, Rs 1,000 and Rs.2,500, respectively.
There will be no limit on holding of these certificates. Any number of certificates can be purchased.

TENURE:
The maturity period of these certificates is six-and-a-half years.

MODE OF PAYMENT:
The certificate can be purchased on payment by
a. cash
b. local cheque, pay order or demand draft drawn in favour of the post-master, and
c. by presenting a duly-signed withdrawal Form or cheque, together with the pass-book for withdrawal from the post office savings account standing at the credit of the purchase at the same post office.
Outstation cheques will not for accepted.
When payment for purchase of the certificates is made by cheque, demand draft or pay order, the date of issue of such certificates will be the date of the encashment of cheque, demand draft or pay order as the case may be.
The old matured certificates will not be accepted for payment for purchase of these certificates.

TRANSFERABILITY:
The certificates can be freely transferred from one person to another without involving the post office - in essence, making them a bearer instrument.

PREMATURE ENCASHMENT:
Premature encashment of IVPs is not allowed and they can be encashed only on maturity.
No lien can be registered against IVPs, as the certificates are issued without registering the name of the purchaser. Banks may provide advances against IVPs by taking them in their possession.

ENCASHMENT AT MATURITY:
The certificates can be encashed on completion of six-and-a-half years from the date of issue at the post office of issue, or at a post office other than the office of issue. In the latter case, the certificates will be verified from the office of issue before payment is made. The certificates cannot be encashed before maturity in any circumstances.
The certificates lost/stolen/destroyed will not be replaced by the post office. Only mutilated or defaced certificates that are beyond recognition will be replaced by the Head post office, on payment of fee of Re 1 per certificate, for issue of duplicate.
The payment of the amount exceeding Rs.20,000 on the discharge of IVPs will be made by the post offices. The sub offices which are not authorised to issue cheques will obtain the cheque from their head office.