Post Office Time Deposit Account
Post Office Time Deposit Account is kind of a fixed deposit account, which is offered by all the Post Offices of India. This type of saving plan is very beneficial for investors who want to deposit a lump sum for a definite time period. At the time of maturity, investors get the lump sum invested (Principal + Interest), where the interest rate on the investment depends on your deposit terms. Nomination facility is provided under Post office Time Deposit scheme. Minimum amount that is required to open this account is Rs. 200 and there is not maximum limit set.
Who All Can Open Post Office Time Deposit Account
- Two adults can jointly open this account or a single adult can also do so
- Group Account by Gratuity fund, provident fund or superannuation fund
- In the official capacity a gazetted officer
- A cooperative bank/ society or a scheduled bank on behalf of the bank members
- By local body/ authority- Public account
Duration/ Tenure:
Time deposits can be made for the period of 1, 2,3, and 5 years.
Rate of Interest:
The interest rate depends on the tenure like the fixed deposits in the bank
Duration Interest
- 1 year 6.25%
- 2 years 6.50%
- 3 years 7.25%
- 5 years 7.50%
Payouts
At the end of every year during the tenure interest is paid out at the time deposit. At the time of maturity principal is paid back
Facility to Nominate
Nomination facility is provided for the Post Office Time Deposit Account.
Where to Open an Account
This type of account can be opened in any of the sub post office or head post office.
Income Tax Benefits
Post Office Time Deposit Account like the bank’s FD’s can be opened for a period of 5 years and avail the benefits under sec 80C of the Income Tax Act.
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