The interest can be transferred to the depositor’s post office savings account with the same post office. However, 1-year, 2-year, and 3-year time deposits do not carry such spreads. A spread of 25 bps or 0.25% is added to 5-year time deposits over and above the G-sec yield. This rate is determined based on the yields on government securities (G-secs). The interest is calculated quarterly and paid annually.
The post office term deposit interest rate is revised every quarter by the Government of India. As per the prevailing rates, she will earn – Mrs Shah invests Rs.5,000 in four post office time deposit schemes of 1 year, 2 year, 3 year, and 5 year each. The rates of interest applicable on a National Savings Time Deposit Account is listed below – TenureĬonsider the following example to understand the returns better – Depositors will be able to claim income tax exemptions of up to Rs.1.5 lakh under Section 80C of the Income Tax Act, 1961. Income tax benefits are available only for a 5-year post office time deposit account. However, account tenure can be extended by giving a formal application to the post office. Depositors also have the freedom to transfer their accounts from one post office to another.ĭepositors get the option to open a time deposit account for 1, 2, 3, and 5 years. One of the primary benefits of post office time deposit is that individuals can create multiple accounts without any restriction. Depositors can also nominate a person before or after opening an account. However, the minor has to apply for ownership of the account after he or she reaches the requisite age.Īccounts can also be held jointly by up to 3 individuals. Further, guardians can open an account on behalf of a minor. Features of Post Office Term Deposit Scheme –Ī few of the requisite details regarding investment in the post office term deposit are as follows –Īny individual above the age of 10 can open a time deposit account at any post office. Under this approach, an individual may have many accounts. Minor accounts are permitted however, the legal guardian must manage them until the minor reaches the age of maturity. These accounts can be maintained either individually or by a group of up to three persons. This system offers accounts with maturities of one year, two years, three years, and five years. The National Savings Time Deposit Scheme provides four accounts with varying maturity dates. Individuals can open a time deposit account by visiting the nearest post office or by using the official website or app of India Post. It is similar to a bank fixed deposit with a few elemental differences. Under small savings schemes, it offers the post office time deposit or National Savings Time Deposit Account. Life insurance (Postal Life Insurance and Rural Postal Life Insurance).With more than 1.55 lakh offices throughout India, it is the most widely distributed post network in the world.Īpart from delivering mails, India Post offers the following – India Post, the trade name of the Department of Posts, has been operational since 1854.
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