Post Office Time Deposit Account
Post office time deposit is a kind of fixed deposit with extra advantages over traditional fixed deposits.
It gives highest security to your investments.
Below are some of the features of post office time deposit scheme :
Features / Advantages of post office time deposit scheme
- Minimum deposit amount is as low as 200 rupees.]
- You can deposit your money for pre-defined number of years. i.e. 1year, 2 years, 3 years and 5 years
- Interest will be calculated on quarterly basis. So, you will get compound interest
- Interest rate varies based on the number of years you choose. Below are the details of interest rates
- Interest will be payable at the end of year
- Nomination facility is also available.
- If you choose to go for 5years deposit, you can get tax benefit under section 80 C
Flexibilities of post office time deposit scheme
- If you are not able to continue your account, you can close your account only after 6months
- You also have the option of changing nominee name after you open the account
- You can transfer your account from one post office to the other
Disadvantages of post office time deposit scheme
- Only adults can open the account. Either single or joint account is allowed
- If you close your account, interest amount will be calculated as per post office savings account interest rate. i.e 4% per annum. No compound interest