Post Office Deposit Scheme for Retiring Govt. employees

No new accounts are opened under the Scheme from the close of business on 9-7-2004. [Notification : No. F. No. 15-01/2004-NS-II(i), dated 9-7-2004]

This scheme offered an option to earn a tax free income to retiring/retired employees of Central and State Governments on their retirement benefits.

Salient features of POREG (Post Office Deposit Scheme for Retiring Govt. employees)


Only retired Central or State Government employees can open the account in their own name or jointly with spouse.

Minimum amount

Rs. 1,000/-

Maximum amount

Entire retirement benefits in multiples of Rs. 1,000/-

Maturity period

Three years

Interest Rate

The investment earns interest at the rate of 7 per cent and is payable half yearly on every 30th June and 31st December.


Entire balance or part can be withdrawn after completion of three years. Only one withdrawal is permitted in a year.

The depositor can continue the account after three years.

Premature encashment can be made after one year from the date of deposit but before the expiry of 3 years in which case interest on the amount so withdrawn will be payable at 4% from the date of deposit upto the date of withdrawal.

Tax benefits

Not available

Interest Taxability

The interest earned is fully exempt from Income Tax under section 10(15)(iv)(i).

Other features

The account should be opened within three months of receipt of retirement benefits.

The account is operated through all branches of the State Bank of India and selected branches of nationalized banks.

The depositor can continue the account after Three years.