If you are looking for safe investment options, Post Office schemes are one of the most reliable. Since it is back by the government, your money never sinks and it guarantees safe and secure returns. One such option is the Post Office Time Deposit scheme:
Features of Post Office Time Deposit:
Options of multiple lock-in period
The depositors have the option to open the time deposit account for a period of 1, 2, 3 or 5years. However, the account term will be extended by simply giving an application to the post office.
Low minimum deposit
The minimum sum required to open the account is Rs 1000. The individuals can deposit the amount in multiples of Rs 1000; however, there is no maximum upper limit cap. The initial deposit can be made either in cheque or in cash. If the payment is made via cheque the encashment date will be set as the opening date of the account.
Premature withdrawal
The POTD account does not permit premature withdrawal within the initial 06 months. In case the corpus is prematurely withdrawn the post office time deposit rate between 6 months and 12 months is going to adhere to the prescribed rate for the savings account.
Interest post maturity
Anyone who does not withdraw the amount even after maturity of the time deposit account won’t receive any extra interest. In case the post office has a core banking solution, then the time deposit can be renewed for the same term that was selected originally. The POTD interest rate is going to be applicable at maturity after the renewal.
Interest rates
You get an interest of 5.5% if you invest between 1 to 3 years. Similarly, you get an interest of 6.7% on a time deposit of 5 years. If money is invested with this interest rate, then your money will double in about 10.75 years.
Interest payment
The interest with the principal is going to be paid either in cheque or cash. Any payment that is higher than the sum of Rs 20,000 will be made with a cheque.
Tax benefits
The income tax benefits are accessible only for the 05-years. The depositor will be able to claim income exemptions up to Rs 1.5 lakh under Section 80C.
Eligibility criteria
Anyone who is looking forward to opening an account should meet the following criteria:
Any citizen of India can open a single account.
The individual can open a joint account with up to three adults.
A minor who is 10 years of age and more can not only open but also operate the account.
On behalf of the minor, a parent or guardian can also open the account.
On behalf of the person of an unsound mind, the guardian can open the account.
NRIs are not permitted to open the post office time deposit account. Besides groups or funds, such as welfare funds, trust funds, regimental funds and institutional account holders as well cannot access the post office time deposit scheme.
Documents required to open the account:
Filled application form of Post Office Time Deposit Scheme
Passport size photographs
Identity Proof: PAN card, Aadhar card or Voter ID
Address Proof: PAN card, Ration card, Aadhar card, Voter ID or Driving license
Income Proof: Salary slips of the last three months or statement of the bank account of the recent six months
How to Open the Post Office Time Deposit Account?
An individual can open a post office time deposit account at any of the post offices in the country both offline and online. But before one opens the account online the prerequisites like an active mobile number, valid KYC documents, email id, PAN card and savings bank account need to be met.
Steps to open Post Office Time Deposit Account online:
Step 1: Visit the official website of India post and sign in to the account using valid credentials.
Step 2: Under the section of ‘General Services’, simply click on the option of ‘Service Request’
Step 3: To request to open the Post Office Time Deposit Account, click on the tab ‘New Request’.
Step 4: Enter all the details correcting while filling in the form.
Step 5: Make the initial contribution sum and then click on the tab ‘Submit’ for the form to be submitted successfully.
Step 6: A confirmation message in regards to the same will be shared on the email id registered.
Steps to open Post Office Time Deposit Account offline:
Step 1: With all the important details, complete the application form
Step 2: While submitting the form attach all the KYC documents and a passport size photograph.
Step 3: The individual should visit the post office where a savings account has been maintained.
Step 4: Submit the application form by making the initial contribution sum of Rs 1000.
