Post Office Time Deposit Account – TD/FD
Table of Contents
What is Post Office Time Deposit – TD/FD
Post Office Time Deposit Account – TD/FD is a Government of India backed saving scheme that offers guarantee return. The investment can be done at India Post Offices.
What is the interest rate on Time Deposit – TD/FD
- Interest rate is calculated quarterly but payable on annual basis
Tax benefit of investing in Post Office Time Deposit – TD/FD
- The Interest amount is subject to tax.
- Investment under 5 Years Post Office Time Deposit Account – TD/FD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007 For senior citizen interest amount is exempt upto Rs 50,000/- under section 80TTB
TD/FD Investment amount
- Minimum deposits is Rs 1000/- and in multiple of Rs 100/-
- No upper limit or maximum amount for investment
Salient features of TD/FD
- Account may be opened by
(i) a single adult
(ii) Joint Account (Maximum 3 adults)
(iii) Minor above 10 yearsof age
(iv) A guardian on behalf of a minor/Person of unsound mind
- 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
- Minor after attaining majority has to apply for conversion of the account in his name.
- TD account can be extended by giving an application in account office
- Interest shall be payable annually, No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder
- The annual interest may be credited to the savings account of the account holder at his option
- Premature encashment not allowed before expiry of 6 month, If closed between 6 month to 12 month from date of Opening, Post Office Saving Accounts interest rate will be payable
- The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
- Online Account Opening facility is available through Intra Operable Netbanking/Mobile Banking
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