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How To Open A Post Office Fixed Deposit Account?

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A host of small savings schemes are currently provided by India Post at specified post offices. Post Office Time Deposit Account (TD) is a prominent investment option among the rest and can be conveniently opened with a minimum deposit of Rs 1,000 and in multiples of Rs 100 (no maximum limit) in any nearby post office. Post Office Time Deposits (POTD), generally referred to as Post Office Fixed Deposits and are government-backed. Under this scheme, for a tenure of 1 year, 2 years, 3 years and 5 years, investors can park their capital respectively. If you are planning to invest in this small savings scheme, then let us know how to use both online and offline modes to open a time deposit account.

How To Open A Post Office Fixed Deposit Account?
 

Key benefits of post office time deposit scheme

  • This scheme comes with multiple tenure options
  • One can make payment through cash, cheque and online mode
  • Interest is calculated quarterly but paid annually
  • Deposits can be withdrawn after six months from the date of deposit
  • After completion of 5 years of investment, tax benefits are available under the section 80C of Income Tax Act, 1961.
  • TDS i.e. Tax Deducted at Source is not chargeable on the interest income
  • Effective transfer of money and account can be done from one post office to another across the country.
  • Returns are guaranteed as this scheme is backed by the Government of India.
  • One can open multiple time deposit account in any post office
  • One can open a time deposit account individually, jointly with up to 3 members for each account and also add a nominee.

Service Charges Applicable On Post Office Savings Schemes

Premature withdrawal facility

As we discussed above that the tenure of post office time deposit scheme range from 1 year to 5 years, but in case of a premature withdrawal there are certain rules applicable which are as follows:

 
  • Before 6 months from the date of opening the account, a premature withdrawal is not allowed.
  • In the condition that the withdrawal is rendered within 6 to 12 months from the date of opening of the account, the interest rate applicable to the amount deposited will be similar to the Post Office Savings Account.

Eligibility required

Eligibility criteria to open a POTD account are as follows:

  • An individual must have a minimum age of 18 years old
  • He or she must have a minimum age limit of 10 years old in case of minors
  • In case the minor is less than 10 years of old, the account can be opened by legal guardians.
  • POTD account can also be opened by a legal guardian in case of an individual with an unsound mind.

How To Open A Post Office Fixed Deposit Account?

Documents required

For opening a Post Office Fixed Deposit account in any post office, the below-listed documents are required.

  • Identity proof: Aadhaar, Voter ID Card, PAN Card (mandated), Driving License
  • Address proof: Aadhaar, Utility bills or Ration Card
  • 2 recent passport-sized colour photographs

Post Office Fixed Deposit Interest Rates 2020

Tenure ROI
1 year 5.50%
2 year 5.50%
3 year 5.50%
5 year 6.70%

How to apply for a post office time deposit account?

Using both online and offline methods listed below, you can open a Fixed Post Office in any post office across India.

Online mode

Using the internet banking service provided by the post office, a Post Office Fixed Deposit account can be opened electronically. Follow the below-listed steps for the same:

  • Visit ebanking.indiapost.gov.in and log in to the portal using the required credentials i.e. registered ID and password. In case you are a new user click here to register for post office internet banking services.
  • Now head to the 'General Services' tab and click on 'Service Request' option.
  • Follow the guidelines and click on the 'New Request' option.
  • Now proceed further and enter all the required details in order to trigger the account opening request.

Offline mode

Optionally, you can also visit the nearest branch of India Post and request for the post office time deposit account opening form. Now duly fill-up the application form, attach all the necessary documents, deposit the minimum amount and submit.

Goodreturns.in

Read more about: post office savings scheme
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