In this article we know TD Account In Post Office, Post Office TD Account Interest Rates, Eligibility for Post Office TD Schemes, Required Documents For TD Account In Post Office, Features of the Post Office Time Deposit Scheme, Eligibility for TD Acccount
Explore the details of the Post Office Time Deposit Account and Scheme, which constitutes an interest-bearing bank deposit with a predetermined maturity period. This deposit, held at a banking institution, remains inaccessible for withdrawal during the specified term. To initiate the account opening process, the required documents include 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. Senior citizen accounts necessitate the use of separate forms, with an introduction being mandatory for SB accounts. Delve further into the particulars of the “Post Office Time Deposit Account, Post Office Time Deposit Scheme” below.
TD Account In Post Office
In CBS Post offices, upon maturity of a Time Deposit (TD) account, the said TD account will undergo automatic renewal for the duration initially chosen, such as a 2 Years TD account automatically renewing for an additional 2 years. The interest rate applicable on the day of maturity will be applied to the renewed term.
Post Office TD Account Interest Rates
Post Office TD Account Interest Rates: Interest is accrued annually but computed on a quarterly basis.
Post Office TD Account Interest Rates: Effective April 1, 2020, the 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% |
The specified deposit amounts are as follows:
| Type of Account | Minimum Deposit | Maximum Deposit |
|---|---|---|
| 1, 2, 3 & 5 Year TD | INR. 200/- and in multiples of INR. 200/- | No limit |
Key features, including tax benefits.
- Account may be opened by an individual.
- Account can be opened by cash/Cheque, and in the case of Cheque, the date of realization in the Government account shall be the date of opening the account.
- Nomination facility is available at the time of opening and also after opening the 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 a 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.
- A minor, after attaining majority, has to apply for the conversion of the account in his name.
- In CBS Post offices, when any TD account matures, 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. The 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.
Eligibility for Post Office TD Schemes
Post Office schemes are accessible to all citizens of the country, with specific Eligibility for TD Acccount outlined below.
- Eligibility for TD Acccount For Any Indian citizen aged 18 years or above is eligible to invest in the Post Office Time Deposit Scheme.
- The Post Office Time Deposit Scheme is open for minors above the age of 10 years, and the account can be opened by their parent or legal guardian.
- Eligibility for TD Acccount For An account can be established in the name of a person of unsound mind, with the parents or legal guardian of such individual being authorized to open the account.
- However, certain exclusions apply to the eligibility for investing in the Post Office Time Deposit scheme.
- The following individuals/entities are not allowed to participate: Eligibility for TD Acccount
- Non-Resident Indians (NRIs)
- Trust funds
- Regimental funds
- Welfare funds
- Any institutional account holders
- Hindu Undivided Families (HUFs)
Required Documents For TD Account In Post Office
Documents For TD Account, The scheme necessitates the submission of a specific set of documents along with the application to ensure its completeness and eligibility for further processing. Documents For TD Account, These documents encompass basic Know Your Customer (KYC) requirements, and the list for the Post Office Time Deposit Schemes is detailed below:
- Identity Proof of the Applicant (or parent or legal guardian of the minor applicant or of the person of unsound mind)
- Address Proof of the Applicant (or parent or legal guardian of the minor applicant or of the person of unsound mind)
Documents For TD Account: Any of the following documents can be submitted for the above purposes:
- Aadhaar Card
- Ration Card
- Driver’s License
- Passport
- Voter ID Card
- PAN Card or Form 60 or Form 61 as per the Income Tax Act, 1961
- Passport Size Photograph of the applicant
- Application form for the Deposit scheme.
Features of the Post Office Time Deposit Scheme
TD Account Post Office Features: The Post Office Time Deposit Scheme encompasses various features and benefits, detailed below:
1. Tenure:
- The Post Office Time Deposit scheme (POTD) is available in four tenures: 1 year, 2 years, 3 years, and 5 years. This flexibility allows investors to choose between short-term and long-term investments, with the interest rate varying based on the selected tenure.
2. Investment Amount:
- There is no upper limit or ceiling on the total investment amount for the Post Office Time Deposit scheme. Investors can start with a minimum investment of Rs. 1000 and contribute in multiples of Rs. 100.
3. Rate of Interest:
- The rate of interest for the Post Office Time Deposit Scheme undergoes periodic reviews by the Ministry of Finance, occurring quarterly in each financial year. Interest is calculated quarterly and disbursed to investors annually. The current interest rates for each tenure are as follows:
| Tenure of the Scheme | Rate of Interest |
|---|---|
| 1 Year Account | 5.5% |
| 2 Year Account | 5.5% |
| 3 Year Account | 5.5% |
| 5 Year Account | 6.7% |
Application Process for Post Office Time Deposit Account
TD Account Apply Online: The application process for the Post Office Time Deposit Scheme is convenient and can be completed through either online or offline modes, as explained below:
Online Mode:
- Application for this scheme is facilitated through mobile banking or intra-operable net banking options available for online application.
- To initiate the process:
- Log in to the Post Office e-banking site using a registered User ID and password.
- Click on “General Services.”
- Select “Service Request.”
- Choose the “Time Deposit opening request” and proceed accordingly.
- An account under this scheme can be opened in one of the following ways:
- A single account.
- A joint account with an upper limit of 3 adult account holders.
Offline Mode:
- Offline application involves visiting the nearest post office to open an account for the time deposit scheme.
- Application Forms are readily available at every post office, and applicants can seek assistance from officials for filling and submitting the form or providing any required documents.
FAQ?: TD Account In Post Office
Q1. Eligibility for Applying to the Post Office Time Deposit Scheme
Individuals who are citizens of the country and are at least 18 years old are eligible to apply for the Post Office Time Deposit Schemes. Minors or individuals of unsound mind can also open an account under the scheme through their parents or legal guardians. However, the following individuals/entities are not permitted to invest in this scheme:
Non-Resident Indians (NRIs)
Trust funds
Regimental funds
Welfare funds
Any institutional account holders
Hindu Undivided Families (HUFs)
Q2.Can one consider investments in the Post Office Time Deposit Scheme to be secure?
Certainly. Investments in the Post Office Time Deposit Scheme are government-backed, ensuring a high level of safety. This feature makes it a preferred choice for investors who prioritize security and are risk-averse.
Q3. What is the minimum investment requirement for the Post Office Time Deposit Scheme?
The minimum investment in the Post Office Time Deposit Scheme is Rs. 1,000, and subsequent investments can be made in multiples of Rs. 100.
Q4. What is the upper limit for investment in the Post Office Time Deposit Scheme?
There is no limit on the maximum investment amount allowed under the Post Office Time Deposit Scheme.
