Time Deposit (TD)

• Interest payable annually but calculated quarterly.
From 1.4.2014, interest rates are as follows:-

 Period  Rate
1yr.A/c 8.40%
2yr.A/c 8.40%
3yr.A/c 8.40%
 5yr.A/c 8.50%

• Minimum INR 200/- and in multiple thereof. No maximum 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 e.g 2 Years TD account will be automatically renewed for 2 Years. Interest rate applicable on the day of maturity will be applied.

• Lock up period of 6 months for premature closer of TD accounts has been removed and as and when any TD accounts is closed before one Year, interest @ savings account applicable from time to time shall be payable. This will be applied for both CBS and non CBS Post offices.

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

Source -- INDIA POST