Post Office Time Deposit (POTD) Account

The Department of Posts is the backbone of the country’s communication and playing a crucial role in the country’s socio-economic development. The Department of Post is commonly known as India Post. 

It offers multiple services to Indian citizens like delivering mails, accepting deposits under Small Savings Schemes, providing life insurance and providing retail services like bill collection etc.

Post Office Time Deposit (POTD) Account

The concept of the post office time deposit (POTD) account is like the bank fixed deposits. The post office time deposit (POTD) account is a good option for those who are looking for fixed income. 

The post office time deposit scheme is safer than a bank fixed deposit as the amount deposited and interest earned are backed by the government of India.

Features of Post Office Time Deposit (POTD) Account

1. Time Deposit (TD) Account can be opened for 1, 2, 3 & 5 years.

2. The account can be opened by cash/cheque and in case of cheque, the date of realization of the cheque in Govt. account shall be the date of opening of the account.

3. The minimum amount that can be deposited is Rs. 200 and there is no limit on the maximum amount.

4. POTD account can be transferred from one post office to another.

5. You can open any number of accounts in your name any post office.

6. Interest payable annually but calculated quarterly.

7. The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

8. In CBS Post offices, when any TD account is matured, the same TD account will be automatically renewed for the period for which the account was initially opened e.g 2 Years TD account will be automatically renewed for 2 Years. The interest rate applicable on the day of maturity will be applied.

Eligibility for opening a Post Office Time Deposit (POTD) Account

1. Time Deposit Account can be opened by any individual.

2. A joint account can be opened by two adults.

3. A single account can be converted into Joint and Vice Versa.

4. A minor of 10 years and above age can open and operate the account.

5. Minor after attaining majority must apply for conversion of the account in his name.

The rate of Interest for Post Office Time Deposit (POTD) Account

From 1.04.2020, interest rates are as follows:

1. For one-year account: 5.5% per annum (quarterly compounded).

2. For two-year account: 5.5% per annum (quarterly compounded).

3. For three-year account: 5.5% per annum (quarterly compounded).

4. For five-year account: 6.7% per annum (quarterly compounded).

Where to open a Post Office Time Deposit (POTD) Account

As the name suggest you can open a POTD account at a post office near to you.

Minimum and Maximum Amount for the opening of the account

The minimum amount that can be deposited is Rs. 200 and there is no limit on the maximum amount.

Number of Accounts Allowed

You can open any number of accounts in any post office.

Documents required for opening a Time Deposit (TD) Account

Post Office Time Deposit Account Opening Form, PAN card, address proof and ID proof for KYC verification purpose.

Account Transfer Facility

You can transfer you POTD account from one post office to another.

Nomination Facility under Post Office Time Deposit (POTD) Account

Nomination facility is available at the time of opening and after the opening of the account.

Tax Benefit under Post Office Time Deposit (POTD) Account

The investment under 5 Years’ Time Deposit Account qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.

You can also read: National Saving Certificate (NSC)

You can also read: Public Provident Fund (PPF) - A popular saving scheme

You can also read: Post Office Recurring Deposit Account | RD Account

You can also read: Post Office Monthly Income Account

If you liked this article, share it with your friends or colleagues through social media. Your opinion matters, please share your opinion.