Types of accounts and matters connected therewith:
1) There shall be four kinds of accounts, namely, 1-year account, 2-year account, 3-year account and 5-year account in which deposits can be made for a period of one year, two years, three years and five years, respectively.

2) The types of accounts which may be opened, the persons by whom such accounts may be opened and other matters connected therewith shall be as specified below:-

1.Single Account

a) A person who has attained the age of maturity and who is of a sound mind (hereinafter referred to as an adult).

b) A minor who has attained the age of 10 years

c) A guardian on behalf of a minor

d) i) A guardian of a person of unsound mind

ii) The Superintendent of the Mental Hospital where a person of unsound mind is confined

e) An authority controlling a provident fund, Superannuation Fund or Gratuity Fund on behalf of its individual members

2.Joint Account

i) `A' type, that is to say, payable to the depositors jointly or to two survivors jointly, or to the sole survivor.

ii) `B' type, that is to say, payable to any one of the depositors or either of two survivors, or to the sole survivor.

Deposit and Repayment:
i.There shall be only one deposit in an account. The deposit shall be in a multiple of Rs 50. There is no maximum limit on the amount of deposit in an account.

ii. The deposit shall be repayable only after the expiry of the period for which it is made, namely, one year, two years, three years or five years, as the case may be.

iii. The repayment of a deposit or payment of interest on a deposit under as the case be, shall be made by the post office savings bank at which the account stands, on the production of the pass-book, accompanied by a written application.
Provided that such repayment or payment of interest, as the case may be, shall not be made by an extra department sub savings bank or branch savings bank, except with prior sanction of the relevant Head savings bank or relevant sub savings bank.

iv. The amount of repayment of a deposit and payment of interest on a deposit shall be entered in the passbook over the signature of the post-master.

Re-deposit:
i. Where a deposit in an account has become due for repayment, the depositor may re-deposit the amount in a new account to be opened, tendering his application for withdrawal of the original deposit in the prescribed form duly discharged.

ii. The date of re-deposit shall be date of withdrawal of the original deposit.
A) Where the redeposit is made during the period specified in column (1) of the Table below, and such re-deposit is for the period specified in the corresponding entry in column (2) thereof, the date of re-deposit shall be deemed to be the same as the date of maturity of the original deposit.

b) In the case of a re-deposit falling under item 4 of the Table, if more than thirty months have elapsed after the maturity of the original deposit, the date of re-deposit shall be deemed to be the date preceding the date of withdrawal of the original deposit by thirty months.

Interest:
The deposit shall carry interest at the rate specified below (applicable from Jan 15th, 2000) and such interest shall be payable to the depositor at the end of each year in the period of deposit.
One year - 8%
Two Year - 9%
Three Year -10%
Five Year -10.5%

Premature withdrawal:
Premature withdrawal of a deposit may be allowed, subject to the following conditions, namely:
a) No deposit may be withdrawn before the expiry of 6 months from the date of deposit.
aa) Where a deposit in a 1-year, 2-year, 3-year or 5-year account is withdrawn
prematurely, after 6 months, but before the expiry of one year from the date of deposit, no interest shall be payable to the depositor.

b) Where a deposit in a 2-year, 3-year or 5-year account is withdrawn prematurely, after the expiry of one year from the date of deposit, interest on such deposit shall be payable to the depositor for the completed years and months falling in the period commencing on the date of deposit and ending with the date of withdrawal and such interest shall be calculated at the rate, which shall be 2 per cent less than the rate specified for a deposit of 1year, 2 years or 3 years, as the case may be.

Post-maturity Interest:
Where repayment of a deposit has become due but has not been made, interest shall be allowed on the amount due for a maximum period of two years from the date of maturity to the date of repayment of the deposit subject to the following conditions, namely:-
a) The interest shall be simple and shall be calculated at the rate applicable from time to time, to savings accounts of the type of single or joint account.
b) For the purpose of payment of interest, any part of the period which is less than one month shall be ignored.
c) The interest shall be paid to the depositor in a lump sum amount at the time of repayment of the amount due.

Procedure on the death of the depositor:
i.On the death of the depositor in a single account or of the surviving depositor in a joint account, the procedure is as follows:

i.If there are not more than two surviving nominees or legal heirs, they may, at their option, continue the account and receive any outstanding amount of deposit and interest in the manner provided for in these rules, as if they had opened the account themselves.

ii. Where the account is not continued, it shall be closed and any deposit outstanding in the account shall be repaid with interest and such interest shall be allowed for the period for which the deposit has remained with the post office savings bank and the rate of such interest will be
a) for the completed years not exceeding the period for which the deposit was made, and
b) for any period thereafter in completed months upto a maximum of 24 months from the date of maturity, as specified from time to time for savings accounts of the type of single or joint account.