Post Office Time Deposit Account (TD) in Post Office New 2023

What is Post Office Time Deposit Account (TD) in Post  Office Post Office Time Deposit Account (TD) also known as National Savings Time Deposit Scheme was regulated by the Finance Ministry of India. You can open an account with a minimum deposit of Rs.1000 and a multiple of 100. And there will be no upper […]

What is Post Office Time Deposit Account (TD) in Post  Office

Post Office Time Deposit Account (TD) also known as National Savings Time Deposit Scheme was regulated by the Finance Ministry of India. You can open an account with a minimum deposit of Rs.1000 and a multiple of 100. And there will be no upper limit to deposit. If you deposit the Maximum amount then get a return also Maximum.

Post office time deposit account

Who Can Open Post Office Time Deposit Account (TD) in Post Office

Single Account

  • A single adult( a person who has attained the age of majority and who is of sound mind)
  • A minor who has attained the age of 10 years.
  • A guardian on behalf of a minor(the guardian signed the contract on behalf of the minor child)
  • A guardian on behalf of a person of unsound mind( an adult who from infirmity of mind is incapable of managing himself or his affairs)

Joint Account

For joint accounts (Up to 3 adults), Joint A or Joint B

  1. A-Type, that is to say, payable to the depositors jointly or to 2 survivors jointly, or to the sole survivor.
  2. B-Type, that is to say, payable to any one of the depositors or either of 2 survivors or to the sole survivors.

 

How to open Post Office Time Deposit Account (POTDA) in Post Office

If you want to open a POTDA in the post office then you can download application forms from the official website or collect the application form from your nearest post office and fill out the form carefully and attach the required document and submit it to your nearest post.

  1. Photograph of the applicant’s
  2. ID Proof (Aadhaar, PAN, Passport, Driving License )
  3. Address Proof( Voter ID, Passport, Driving License)
  4. Age proof(Aadhaar, Voter, school certificate)

 

Post Office Time Deposit Account Application Forms 

Post office time deposit account (td) calculator

 

Post Office time deposit interest rates 2023 in table format

Interest payable, Rates, periodicity Minimum Amount for opening of account and maximum balance that can be retained
Interest is payable annually but calculated quarterly Minimum Rs.1000 and multiple of 100

No maximum limit

The Finance Ministry of India reviews the interest rates on the scheme at the beginning of every quarter of the financial year.

The following interest rates of the post office time deposit account are applicable from 1st July 2023 to 30th September 2023*:

Account Period Annually Interest Rate
1 Year 6.9%
2 years 7.0%
3 years 7.0%
5 years 7.5%

Note: The above interest rates are reviewed every quarter by the Finance Ministry of India

How much amount to be deposited for Post Office Time Deposit Account

  1. The account type for 1 year, 2 years, 3 years, and 5 years
  2. The account can be opened with a minimum of Rs.1000 and a multiple of Rs.100. And No Maximum Limit.
  3. Interest shall be payable annually

In case you do not wish to withdraw the interest annually, you can instruct the post office to redirect it to your post office savings accounts that earn 4% interest per annum. However, this cannot be done in the case of a Post Office Time Deposit Account with 1-year tenure.

It is mandatory to add Aadhaar and PAN (Permanent Account Number) to Post Office Time Deposit Account

  • As per the latest notification realized by the Ministry of Finance, it is mandatory to provide your PAN and Aadhaar number to open a new Post Office Time Deposit Account. If you have not been assigned an Aadhaar, you need to provide proof of application of enrollment for Aadhaar or Enrollment ID at the time of opening the account and also mind it you need to provide your Aadhaar number within 6 months from the date of opening the account. Moreover, if you have not submitted you’re PAN at the time of opening the account, you need to submit it within a period of 2 months.
  • On the other hand, if you already have an existing Post Office Time Deposit Account and have not provided Aadhaar yet, you need to submit it within the period of 6 months.
  • If you fail to submit your Aadhaar within the specified period of 6 months and your PAN within the specified period of 2 months, it will result in the account becoming in-operational till the time the Aadhaar number and PAN are submitted to the accounts office.

 

Benefits of investing in a Post Office Time Deposit Schemes

  • Post Office Time Deposit Scheme provides a guaranteed return on investment
  • 5 Year Time Deposits qualify for tax deduction under Section 80C of the Income Tax Act
  • Even minors aged 10 years and above can operate the account by themselves
  • A nomination facility is available
  • Accounts can easily be transferred from one post office to another
  • Premature withdrawal of deposits is allowed
  • Post Office Time Deposit investments are considered safer than FDs as the principal amount invested and the interest earned are backed by sovereign guarantee
  • There is no cap on the maximum number of accounts that can be opened in any post office

Premature closure of Account (Drawback of POTDA)

  • No deposit shall be withdrawn before the expiry of 6 months from the date of opening or deposit.
  • If the Time Deposit account is closed after 6 months but before 1 year, then the Post Office Savings Account interest rate will be applicable.
  • If a 2/3/5 year Time Deposit account is prematurely closed after 1 year, interest will be calculated at 2% less than of Time Deposit account interest rate.
  • A time Deposit account can be closed prematurely by submitting the prescribed application form with a passbook at the concerned post office.

 

FAQs

Ques. What is the minimum amount required to open a POTD?
Ans
. A Post Office Term Deposit can be opened with an amount as low as Rs.200.

Ques. Can I avail of tax benefits by investing in POTD?
Ans
. Investors can avail of tax benefits in POTD only if the tenure of the deposit is 5 years.

Ques. Can I transfer my term deposit from one post office to another?
Ans
. Yes, you can do so by submitting either a manual application to be post office or by using the prescribed SB10(b) form.

Ques. Is premature closure of POTD allowed?
Ans
. Yes, you can close your term deposit prematurely. To do so, your account should have been active for the last 6 months. If the withdrawal is made between 6 months and 1 year, simple interest is payable as per the Post Office Savings Account interest rate. If the withdrawal is made after 1 year of opening the account, the applicable interest rate would be 1% lower than the interest rate corresponding to the tenure the account was originally booked for.

 

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