Post office Time Deposit

 

1-What is the post office fixed deposit schemes?

At present, the Post Office FD scheme, or Time Deposit scheme, is suitable for all sections of society. There is a minimum investment of just Rs. 1000(one time payment) and there is no upper limit on the investment. Investors can invest money for a 1 year, 2 year, 3 year, or 5 year period (with a 4yr FD/TD investment option not available).

Any number of accounts can be opened.

TD investment is risk free as the scheme is backed by the government of India.

 2-Post office fixed deposit interest rates 2020?  

1 yr.A/c	5.5%	(Annual Interest R. 561 on Rs. 10000 deposit)
2 yr.A/c	5.5%	(Annual Interest R. 561 on Rs. 10000 deposit)
3 yr.A/c	5.5 %	(Annual Interest R. 561 on Rs. 10000 deposit)
5 yr.A/c	6.7 %	(Annual Interest R. 687 on Rs. 10000 deposit)

3-What is the minimum fixed deposit amount ?

Minimum INR 1000/-and in multiples of 100. No maximum limit.

4-TD/FD account opening eligibility.

1-A single adult

2-joint account for up to 3 adult persons.

3) 3-Minor account( guardian can invest on behalf of the girl/boy).

4-Any minor above 10 can open an account in their own name. The minor, after attaining the age of 18, can apply for conversion of the account into his name.

5-What paperwork is needed to open a fixed deposit account?

The documents listed below require an open TD account in the post office scheme—

• Proof of Address(Anyone)

• Aadhaar Card

• telephone bill

• electricity bill

• bank statement

• Driving License

• Passport

 

• Proof of Identity(anyone)

• Voter ID

• Pan card

• Aadhaar card

• Driving licence

• A ration card for photos

• Passport

• 2 ColorPhoto (2-2 each in the case of a joint account).

 Note-If investors have any previous account(SB,MIS, PPF,TD, RD, or SCSS) with any CBS post office in India, then there is no need to submit the above KYC. You just need to write the CIF number on the application form.

6-Is there any locking period?

Yes, there is a locking period. The deposit amount can not be withdrawn before the expiry of six months from the date of deposit.

But,

If a TD account is closed after 6 months but before 1 year, the PO Savings Account interest rate will be applicable.

(iii) If a 2/3/5 year TD/Fixed deposit account is prematurely closed after 1 year, interest is calculated at 2 % less than the TD interest rate (i.e., 1/2/3 years) for completed years, and for part periods less than a year, PO Savings Interest rates will be applicable.

(iv) A TD account can be closed early by submitting the prescribed application form along with the pass book to the relevant Post Office.

7-Can we keep the nomination for TD/fixed deposit?

Yes, nomination can be done for TD deposit.

8-Post office TD/fixed deposit interest calculator?

Though it is payable yearly, the interest is calculated on a quarterly basis.

9-Can we extend fixed deposits after maturity?

On maturity, an FD account can be extended for another tenure for which the account was initially opened. (1 year TD may be extended for an additional year)

 However, FD account extensions must be completed within the time frame specified below.

 The 1 year TD account should be extended within 6 months of maturity.

A 2 year TD account should be extended within 1 year of maturity.

TD accounts should be extended within 18 months of maturity.

10-Is there a tax benefit for fixed deposits?

Only a 5-year TD account has the tax benefit under Section 80C of the Income Tax Act, 1961. Senior citizens get a tax benefit of Rs.50,000 under Section 80 TTB.

11-Is there any special interest rates for senior citizens?

No, Senior citizens do not get any special rates on TD schemes.

12-Can an NRI open a TD or FD account in the post office?

No, NRIs are not permitted to open TD or FD accounts at the post office.

13-Can we open a TD or FD account online?

Yes, a TD or FD account can be opened online, but first a basic saving account must be opened in the post office, after which one can access the online portal and invest in a TD account.

14-What if interest does not withdraw?

If the amount is not withdrawn after maturity, the savings account interest rate is given for a maximum period of two years.

15-What is the credit rating for post office TD investment?

Post office TD schemes are backed by the government of India, hence they do not require any commercial rating.

16-TDS applicable?

No TDS is deducted on TD/FD.

17-Can we transfer TD accounts from one post office to another post office?

Yes, TD accounts can be transferred from one post office to another within India; to do so, fill out the SB-10 form.