Time Deposit Account

Time Deposit Account

v Any individual (a single adult or two adults jointly) can open an account.

v Group Accounts, Institutional Accounts and Misc. account not permissible.

v Trust, Regimental Fund or Welfare Fund not permissible to invest.

v 1 Year, 2 Year, 3 Year and 5 Year Time Deposit can be opened.

v In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01.12.2011, if the deposit is withdrawn after 6 months but before the expiry of one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable.

v In case of premature closure of 2 year, 3 year or 5 year account on or after 01.12.2011, if the deposit is withdrawn after the expiry of one year from the date of deposit, interest on such deposits shall be calculated at the rate, which shall be one per cent less than the rate specified for a period of deposit of 1 year, 2 year or 3 years as mentioned in the concerned table given under Rule 7 of Post office Time Deposit Rules.

v Rate of interest - 8.20%, 8.20%, 8.30%, 8.40% compounded quarterly for 1,2,3 & 5 years TD account respectively.

v The investment in the case of  5 years TD qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

v Type of Account	v Minimum Deposit	v Maximum Deposit
v 1,2,3 & 5 Year TD	v INR.200/- and in multiples of INR. 200/- thereafter	v No limit.

 

v Interest payable annually but calculated quarterly.

v From 1.4.2013, interest rates are as follows:-

 

 

 

v Period      Rate

v 1yr.A/c      8.20%

v 2yr.A/c      8.20%

v 3yr.A/c      8.30%

v 5yr.A/c      8.40%  

 

o   Account may be opened by individual.

o   Account can be opened by cash/cheque and in case of cheque the date of realization of cheque in Govt. account shall be date of opening of account.

o   Nomination facility is available at the time of opening and also after opening of account.

o   Account can be transferred from one post office to another.

o   Any number of accounts can be opened in any post office.

o   Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.

o   Joint account can be opened by two adults.

o   Single account can be converted into Joint and Vice Versa.

o   Minor after attaining majority has to apply for conversion of the account in his name.

o   2,3 & 5 year account can be closed after 1 year at discount. Account can also be closed after six months but before one year with interest @post office savings account.

v The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.