Post Office's Time Deposit Account is same as term deposit or fixed deposits provided by bank and other institutions. Post Office's Time Deposit Account can be opened for maturity duration of either 1 year, 2 year, 3 year and 5 year. You can get income-tax benefit under section 80-C if you have chosen maturity duration of 5 year.

Who can invest in this scheme

Below are eligible investors for Post Office's Time Deposit Account

  • A single adult or two adults jointly
  • A pensioner to receive/credit his monthly pension
  • Group Accounts by Provident Fund, Superannuation Fund or Gratuity Fund, Authority controlling funds of the Sanchayika.
  • Public Account by a local authority/body
  • Institutional Accounts by the Treasurer of Charitable Endowments for India, Trust
  • Regimental Fund & Welfare Fund
  • A cooperative society / cooperative bank or scheduled bank on behalf of its members, clients or employees
  • Gazetted Officer in his official capacity

The accounts can be transferred to any other post offices easily. Depositor can open any number of time deposit accounts. On maturity, the account is automatically renewed for the period it was initially opened.

However, NRIs cannot invest in the time deposit schemes offered by the post office.

How to open Post Office's Time Deposit Account

You can open this account at any head post office or any post office of your choice. Once you have decided post office, you just need to walk in to postoffice, fill in form, submit required documents. make payment and you're done.

Documents Required: Copy of Address and identity proof such as PAN Card, Passport, election voter card, aadhar card, ration card, etc. Also carry original document for verification at a time of opening account.

You can also mention nominee in form, and at last you need witness signature.

For initial investment you need to fill pay-in slip. You can do payment by either cash or cheque. Minimum investment amount is 200 rupees.

Interest rates (FY 2016-17)

Locking Period Interest Rate
1 Year 7.10%
2 Year 7.20%
3 Year 7.40%
5 Year 7.90%

Interest is calculated quarterly compounding basis and is annually payable. Also interest earned is subject to taxable.