TERM DEPOSIT SCHEME
"Fixed Deposit with Government of India"
Post Office Term Deposit Scheme provides a guaranteed return on investment. 5 Year Time Deposits qualify for tax deduction under Section 80C of the Income Tax Act. The post-office term deposit (POTD) is similar to a bank fixed deposit, where you invest money for a fixed period of time, earning a fixed return through the tenure of the deposit.
At the end of the deposit's tenure, the maturity amount comprises the capital deposited and the interest it earns. The interest rate on the POTD is guaranteed for the tenure one opts for. The POTD is liquid, despite the deposit lock-in. One can borrow against the deposit or withdraw the deposit prematurely.
The account holder can be an individual, joint or minor above the age of 10 years
The account cannot be opened by NRIs/ HUF
The minimum amount of deposit is Rs 200/- and there is no maximum amount
The facility of redeposit is available after maturity
The account can be closed after 6 months but before 1 year without interest
Interest income is tax payable
Deposits are exempted from Wealth Tax
Interest is payable annually but is calculated quarterly Interest rate is fixed at the time of investing and stays the same for the entire tenure
A nomination facility is available
The account can be transferred from one post office to any other in India
Tenure : 5 YEARS
Rate of Interest :
Type of Interest: FIXED FOR THE TENURE
Mode of Calculation: PAYABLE ANNUALLY BUT CALCULATED QUARTERLY
- Minimum Amount Required: Rs. 1,000/- In multiples of Rs. 100/-
- Maximum Amount Limit: No Maximum Limit
- Who can Invest : (i) a single adult (ii) Joint Account (Maximum 3 adults) (iii) Minor above 10 years of age (iv) A guardian on behalf of a minor
- Documents Required : (I) 2 photographs (ii) along with a self-attested copy of PAN Card and Aadhaar Card