Post Office Time Deposit Account (TD): Post Office Time Deposit Account is a fixed deposit scheme run by the Post Office. The account can be opened with a minimum investment of Rs 1000 and in multiples of Rs 100.
Post Office Time Deposit Account (TD): Post Office Time Deposit Account is a fixed deposit scheme run by the Post Office. The account can be opened with a minimum investment of Rs 1000 and in multiples of Rs 100. Currently the interest rates under this scheme are 6.9 percent, 7.0 percent, 7.1 percent and 7.5 percent. This interest rate will remain effective till March 31, 2024. There are four tenures for Post Office Time Deposit Account which you can choose from 1 year, 2 years, 3 years and 5 years. The minimum deposit amount in this account is Rs 1,000. Interest is calculated quarterly but payable on an annual basis.
Who can open an account
A single adult person can open this account. Joint account (up to 3 adults) (Joint A or Joint B) can be opened. Apart from this, a guardian is entitled to open this account on behalf of a minor. A minor above 10 years of age can open an account in his own name.
Rate of interest
1 year 6.9%
2 years 7.9%
3 years 7.1%
5 years 7.5%
Deposit
Account can be opened with a minimum amount of Rs 1000 and in multiples of Rs 100. There is no maximum limit for investment. Interest will be payable annually. By submitting the application, annual interest can be deposited in the savings account of the account holder. Investment under 5 year time deposit is eligible for the benefit of Section 80C of the Income Tax Act, 1961.
Maturity period
The deposit amount is given to the investor after the expiry of 1 year, 2 years, 3 years, 5 years from the date of account opening.
Pre-Mature Account
No deposit amount can be withdrawn before the expiry of six months from the date of deposit. If the time deposit account is closed after 6 months but before 1 year, PO Savings Account interest rate will be applicable. TD account can be closed prematurely by submitting the application form along with the passbook in the post office.
