Post Office Time Deposit Scheme:- One of the most well-known investment options provided by India Post is the Post Office Time Deposit Account (POTD), sometimes referred to as the National Savings Time Deposit Account. While the program is accessible to everyone, it is especially well-liked in rural and remote parts of the nation where there are few banks and few investment options. Read the article below to learn more about the Post Office Time Deposit Scheme
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Post Office Time Deposit Scheme 2024
The Post Office Time Deposit Account (POTD) does not have an investment cap. Additionally, investments can be raised in multiples of Rs 100.
Post Office Gram Suraksha Yojana
POTD Scheme Details in Highlights
| Name of the scheme | Post Office Time Deposit Scheme |
| Objective | To offer a guaranteed rate of return |
| Beneficiary | To offer a guaranteed rate of return |
| Official Website | https://www.indiapost.gov.in/vas/Pages/IndiaPostHome.aspx |
Features of Post Office Time Deposit Scheme
The following are the features of the Post Office Time Deposit Scheme:
- One deposit may be placed in a single account under the post office time deposit schemes, and the tenure of the deposit maybe 1, 2, 3, or 5.
- This post office program assures investors of returns on their money.
- Time deposit accounts can be easily moved from one post office to another. Time deposit accounts can be handled singly or jointly. Upon maturity, account holders have the option to prolong the term of a time deposit account.
- The account will automatically renew for the initial deposit duration at the applicable interest rates as of the date of maturity if the proceeds from a mature account are not withdrawn.
- The number of time deposit accounts that may be opened is unrestricted.
- The Post Office Time Deposit program requires a minimum deposit of Rs. 1,000. It should be mentioned that the deposit amount can only be in multiples of Rs. 100. If not, the money will be maintained in the account in multiples of Rs. 100, and the remaining money will be returned to you interest-free.
- Recently, the central government permitted investors to open POTD accounts with all public sector banks and select private banks, including ICICI Bank, Axis Bank, and HDFC Bank.
- Recently, the central government permitted investors to open POTD accounts with all public sector banks and select private banks, including ICICI Bank, Axis Bank, and HDFC Bank.
- Investors might think about using POTD investments as a substitute for bank fixed deposits.
Benefits of Post Office Time Deposit Scheme
Following are the benefits of Post Office Time Deposit Scheme
- A guaranteed rate of return is provided through the POTD Scheme.
- Even youngsters 10 and older can independently control the account.
- Tax deductions are available for 5 Year Time Deposits under Section 80C of the Income Tax Act.
- The minimum investment amount is Rs. 200, and there is no maximum investment amount.
- There is a nomination facility.
- Simple account transfers between post offices are possible, as is early withdrawal of deposits.
- There is no cap on the number of accounts that can be opened at one post office.
- POTD investments are regarded to be safer than FDs because the money invested and the interest earned are guaranteed by a state guarantee.
Eligibility Requirements for Post Office Time Deposit Scheme
The following requirements must be met in order to be qualified to open a Post Office Time Deposit Account:
- This account may be opened and operated by any resident Indian either alone or jointly.
- A minor who is at least 10 years old may open and manage this account.
- A minor’s Post Office Time Deposit account can be opened by a parent or legal guardian.
- Indians who are not residents cannot open Post Office TD accounts.
- The Post Office Time Deposit Scheme does not permit the use of the following organisations or funds:
- Institutional account holders
- Trust funds
- Regimental funds
- Welfare funds
POTD Scheme Documents Required
To open a Post Office Term Deposit, the following documents are required to be presented-
- SB3
- SB13 (pay-in slip)
- Specimen Signature Slip
Post Office Time Deposit Scheme Interest Rates
| Account Term | Interest Rate Applicable |
| 01 year | 6.9 percent |
| 02 years | 6.9 percent |
| 03 years | 6.9 percent |
| 05 years | 7.7 percent |
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POTD Funds Premature Withdrawal
Money can be withdrawn from Post Office Time Deposit Accounts even before the account reaches maturity. The only requirement for being eligible for a premature withdrawal is that at least six months have passed after the first deposit. The following are essential terms and conditions in the event of an early withdrawal from a time deposit. –
- If a premature withdrawal of 1/2/3 or 5-year POTD is made after the completion of 6 months but before the completion of 1 year from the date the deposit account was formed, simple interest is paid in accordance with the Post Office Savings Account interest rate.
- If a premature withdrawal of a 1/2/3 or 5-year TD account is made after one year from the date the account was started, the interest rate that applies is 1% lower than the interest rate that corresponds to the initial tenure booked for the account.