Salient features of Time Deposit

ü  Minimum INR 200/- and in multiple thereof. No maximum limit.
ü  Interest payable annually but calculated quarterly.
From 1.4.2014, interest rates are as follows:-
                 Period  Rate
                 1yr.A/c- 8.40%
                 2yr.A/c- 8.40%
                 3yr.A/c- 8.40%
                 5yr.A/c- 8.50%
ü  Account may be opened by individual.
ü  Account can be opened by cash/cheque and in case of cheque the date of realization of cheque in Govt. account shall be date of opening of account.
ü  Nomination facility is available at the time of opening and also after opening of account.
Account can be transferred from one post office to another.
ü  Any number of accounts can be opened in any post office.
ü  Account can be opened in the name of minor and a minor of 10 years and above age can open and operate the account.
ü  Joint account can be opened by two adults. Single account can be converted into Joint and Vice Versa.
ü  Minor after attaining majority has to apply for conversion of the account in his name.
ü  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. Interest rate applicable on the day of maturity will be applied.

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