Post Office Time Deposit Account, Post Office Time Deposit Scheme. A time deposit or term deposit is an interest-bearing bank deposit with a specified period of maturity. It is a money deposit at a banking institution that cannot be withdrawn for a specific term or period of time. To open an account [Savings Bank (SB), Recurring Deposit (RD), Time Deposit (TD), Monthly Income Scheme (MIS) SB3, SB103 (pay-in-slip) and specimen signature slip for SB and TD are required. For senior citizen accounts, separate forms are to be used. For SB account introduction is compulsory. Now scroll down below n check more details for “Post Office Time Deposit Account, Post Office Time Deposit Scheme”
In CBS Post offices ,when any TD account is matured, the same TD account will be automatically renewed for the period for which the account was initially opened e.g 2 Years TD account will be automatically renewed for 2 Years. Interest rate applicable on the day of maturity will be applied.
Interest payable annually but calculated quarterly.
From 1.04.2020, interest rates are as follows:-
| Period | Rate |
|---|---|
| 1 yr. A/c | 5.5% |
| 2 yr. A/c | 5.5% |
| 3 yr. A/c | 5.5% |
| 5 yr. A/c | 6.7% |
| Type of Account | Minimum Deposit | Maximum Deposit |
|---|---|---|
| 1, 2, 3 & 5 Year TD | INR. 200/- and in multiples of INR. 200/- thereafter | No limit |
- Account may be opened by individual
- 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
- Nomination facility is available at the time of opening and also after opening of account
- Account can be transferred from one post office to another
- Any number of accounts can be opened in any post office
- Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account
- Joint account can be opened by two adults.
- Single account can be converted into Joint and Vice Versa
- Minor after attaining majority has to apply for conversion of the account in his name
- *In CBS Post offices ,when any TD account is matured, the same TD account will be automatically renewed for the period for which the account was initially opened . Example 2 Years TD account will be automatically renewed for 2 Years. Interest rate applicable on the day of maturity will be applied
- The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
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Source: bank.newstars.edu.vn
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