POST OFFICE TIME DEPOSIT ACCOUNTS
Who can open an account
Any individual can open an account, whether singly or jointly with another person. Account can be opened on behalf of a minor or a person of unsound mind. Even more than one account can be opened without any limit. The deposit shall be made in multiples of [Rs. 200].
Maturity
The account can be opened for 1 year, 2year, 3year or 5years.
Interest
Interest on time deposits is payable as under:
Deposit made from 1.3.2003 onwords
1st year 6.25%
2nd year 6.50%
3rd year 7.25%
5th year 7.50%
Withdrawals
Not permitted before 6 months. No interest is payable if deposit is withdrawn after 6months but before 1year. If deposits made for 2years, 3years or 5years are prematurely withdrawn after one year, then interest shall be payable at a rate 2% less than the rate applicable to the period for which the deposit has run.
Income Tax Benefit
Amount invested in 5years POTD, alongwith PPF/LIC/NSC/ULIP, etc. upto a maximum of Rs. 1,00,000 is eligible for deduction u/s 80C. In case of deposit under joint holding, deduction u/s 80C shall be available to the first holder.
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