POST OFFICE TIME DEPOSITS

Post office Time deposit scheme is a type of fixed deposit account offered by Department of post, Government of India at all post office. This saving plan is best for those investors who want to deposit a lump sum for a fixed period. Investor gets a lump sum (principal + interest) at the maturity of the deposit, where rate of interest on investment depend on the term of deposit.

Who can open :

• A single adult or two adults jointly,
• A pensioner to receive/credit his monthly pension,
• Group Accounts by Provident Fund, Superannuation Fund or Gratuity Fund, Authority
  controlling funds of the Sanchayika.
• Public Account by a local authority/body,
• Institutional Accounts by the Treasurer of Charitable Endowments for India, Trust
  Regimental Fund & Welfare Fund,
• A cooperative society / cooperative bank or scheduled bank on behalf of its members,
  clients or employees
• Gazetted Officer in his official capacity.

[ Non Resident Indian / HUF can not open the account. ]

Nomination facility

Nomination facility is available under Post office Time Deposit scheme.

Amount Required

Minimum amount required: Rs.200/-.
Maximum Amount : No Limit

Time / term of investment

Time Deposits can be made for the periods of 1 year, 2 years, 3 years and 5 years.

Interest Rates

Period of Deposit                                Rate of Interest P.A

1 Year                                ------                     6.25%

2 Year                                ------                     6.50%

3 Year                                ------                     7.25%

5 Year                                ------                     7.50%

Income Tax Matter

Rebate U/s 80C upto 100000 on invested amount in 5 Years Time Deposits but interest taxable, No relief  below 5 years Deposits & interest under Income Tax Act, 1961