Families of AF personnel who die in harness and retiring personnel get substantial
monetary compensation. Timely and proper advise, on judicious investment of lumpsum money received is not readily available to the families/retiring members. As a result, in a number of cases regular income is not forthcoming which affects the life standard of the family adversely. Quite often bereaved families/retired personnel are duped of the money. With a view to assist personnel in investing their funds at good rate of interest combined with safety, the AFGIS has launched an Investment Scheme with effect from 01 Dec 91.
The Scheme is open to the air veterans (including SSC officers)/officers seconded to IAF though not a member of AFGIS but who retire from the IAF/widows and NoK (minor children / major unmarried daughters) of air warriors/
air veterans who are eligible to draw family pension.
Deposits in IAFSSD scheme are permissible within 3 years of retirement / discharge / death or from the date of receipt of PPO whichever is later.
Air Veterans / NoK who have fully or partially withdrawn their deposits on maturity / prematurity can reinvest the said sum within 3 years from the date of such withdrawal.
The following schemes are available to the depositors for investment.
(a) Non-Cumulative Scheme :- For the amount invested under this scheme, payment will be made at the rate as decided by the BoT on monthly/quarterly basis as opted by the member (after deduction of Income Tax, if any). Interest will be directly credited to the members account through
NeCS () on due date.
For the Carry Forward Loan cases the interest, if any left, after adjusting
Monthly EMI of House Building Loan/ Conveyance Loan is paid on monthly
(b) Cumulative Scheme :- On cumulative deposit extra interest equivalent to difference in rate arrived at by calculating compounding effect of quarterly rate will be paid. The interest will be credited to the depositors account at the end of every year and repaid at the time of maturity along with
Amount of Deposit
IAFSSD Investment Form ()
The Society will accept deposits in multiples of Rs10,000/- the minimum acceptable amount being
Rs 50,000/-.The maximum amount of deposit will be limited to the aggregate of terminal benefits (i.e. Gratuity / Commutation/Leave Encashment / SB of GIS/DSOP/AFPPF) received from all sources. The amount of investment from past retirees/widows will be restricted only to the extent of terminal benefits they have received at the time of their retirement/death of spouse. Proof of terminal benefit receipts are to be attached along with the application for deposit by the members at the time of joining the scheme. Income earned from any other sources other than the interest earned on the deposits made in IAFSSD Scheme will not be accepted for investment under this
The depositor may either indicate the amount of investment they wish to make out of the amount due to them from AFGIS or send the same separately to the Society by demand draft or multicity cheques of any Bank drawn in favour of "Air Force Group Insurance Society". Amount required to be invested can also be transferred
directly through RTGS (click for details). Interest will be payable from the date the draft/cheque is credited in the account of AFGIS.
Interest rates offered are governed by the decisions of the Board of Trustees from time to time. The rate so revised will be implemented prospectively not retrospectively. Thus the existing deposits made prior to the date of revision will earn the existing pre-revised rate of interest till the date of maturity/ pre-mature liquidation.
To know about current rate of interest and calculate the maturity value of deposit
Click here .
Renewal of Deposit
The deposit will be renewed for a period of one year only. Members will have to indicate their willingness to renew the deposit at least one month before they are due. Members have the option to renew the principal amount only or full amount including interest at the time of renewal of deposit. FDRs, duly discharged, are to be submitted by the member to the Society for renewal / redemption.
If the deposit(s) is/are not encashed/ renewed on maturity, the same will be automatically renewed for a period of one year under cumulative scheme.
Premature withdrawal of deposits is permissible to meet unforeseen financial commitments. The member, however, will lose 1% interest from the date of deposit if withdrawal is made after completion of one year. Interest at the prevalent bank rate for fixed deposits of such duration will be payable if deposits are prematurely withdrawn before completion of one year. In renewal cases, the member will lose only 1% interest from the date of renewal.
Part Premature withdrawal
Part Premature withdrawal of the deposit amount can also be made. In such case loss of interest as mentioned in para above will be applicable only on the withdrawn amount and not the entire Fixed Deposit amount.
The depositor would be required to make nomination in para 4 of application form in favour
of a person to receive the deposit in the event of the death of the depositor.
Tax Deducted at Source(TDS)
Income Tax and surcharge at the applicable rate as decided by Govt. (CBDT) from time to time would be deducted at source on total interest, if the interest payable exceeds prescribed limits in a year or as decided by Govt. In the case of members holding multiple deposits, total interest payable will be considered for calculating the income tax dues. However, Income Tax will not be deducted at source by AFGIS in case the depositors give a declaration on
Form 15-H () under Section 197 (A)(i) of the Income Tax ACT, 1961 before 31st March every year (for the following financial year) and at the time
of maturity / withdrawal.
Change of Scheme
Members can change over from one scheme to another after completion of one year from the date of deposit. This facility is available only once during the tenure of deposit without levying any penalty.
Eligibility : All retired Air Force personnel/ widows
are eligible to draw loan against their
fixed deposits held with AFGIS under IAFSSD Scheme (formerly
Amount of Loan : Loan amount restricted to 75% of FDRs.
Repayment Period : The loan availed under the scheme is required to be repaid
in maximum 120 instalments (Minimum instalments - 12).
Rate of Interest : The rate of interest for loan availed under the scheme will be floating.
The rate of interest will be charged 1% higher than the
rate of interest declared on
Non-Cumulative Scheme of IAFSSD every year on the
outstanding principal at the beginning of the Financial
Payment of EMIs : The retired personnel availing the loan under the scheme is
required to ensure that EMI fixed is remitted to AFGIS on
the last day of every month. If the EMI is not received
regularly for three months, AFGIS will take steps to encash
the deposit held against the individual in
IAF Social Security Deposit Scheme and to
recover the outstanding loan along with interest. The
interest on deposit will not be adjusted against EMI. To
ensure regular remittance, issue standing instructions to
your bankers to electronically remit the EMI to AFGIS or,
alternatively, forward post-dated cheques for 12 months. The
post-dated cheques issued towards EMI should not be
dishonoured. If the post-dated cheque is dishonoured, the
FDR can be foreclosed to recover the outstanding loan
without any intimation.
Safe Custody of Fixed Deposit Receipt : The Fixed Deposit Receipt against which the loan taken is to
be discharged over Rs. 1 Revenue Stamp and submitted to the
Society for safe custody till the loan is fully repaid.
Processing Fees : Nil. (Processing Fee has been waived off wef 01 Oct 2017)