Post Office TD, Post Office Time Deposit Calculator 2023, Interest Rate, Tenure, Maturity, Tax Saving: With effect from April 1, 2023, the government has modified the interest rates of all small saving schemes.
Apart from the Public Provident Fund (PPF), the interest rates for all other savings schemes have been raised by 10-70 basis points.
The 5-year Post Office Time Deposit Account is a secure and favored investment scheme among small investors seeking guaranteed returns.
It is particularly attractive to those with low-risk tolerance. Effective April 1, 2023, the government has raised the annual interest rate for the Post Office TD scheme for a 5-year tenure from 7% to 7.5%.
Investors have the flexibility to choose a tenure of 1, 2, 3 or 5 years for Post Office Time Deposit Accounts.
Upon maturity, the deposit can be extended for another year.
The scheme allows both single and joint accounts, with a maximum of 3 adults in the joint account.
With a minimum investment of Rs 1000, investors can open a Post Office Time Deposit Account and subsequently invest in multiples of Rs 100. There is no upper investment limit for this scheme.
Post Office Time Deposit Calculator
At 7.5% rate of interest, if a person invests Rs 5 lakh for 5 years, then they will receive Rs 2,24,974 as interest and Rs 7,24,974 in total upon maturity.
Earlier, at 7% rate of interest, investors would receive around Rs 2,07,000. Hence, the rate hike has lead to an increae of almost Rs 18,000 for such deposits.
Read all details of Post Office Time Deposit Account here —
Post Office TD: Who can open Post Office Time Deposit Account?
- A single adult
- Upto 3 adults can form a joint account
- A guardian can open account on behalf of minor, or a minor over 10 years old
- A guardian on behalf of person of unsound mind
One can open as many accounts as they want.
Post Office TD: Deposit duration, tenure
Post Office Time Deposit Accounts can be held for a duration of 1 year, 2 years, 3 years, or 5 years.
The deposit period can be extended for a year upon maturity by giving an application.
Post Office Time Deposit Account: Deposit amount
Post Office TD account can be opened for a minimum amount of Rs 1000 and in multiples of Rs 100 thereof. There is no maximum limit for investment.
Post Office Time Deposit Account: Interest
Interest on Post Office TD account shall be paid annually.
The annual interest is credited to the savings account of the account holder upon their submission of application.
Note: Upon maturity, no additional interest will be paid on the interest that has become due for payment but not withdrawn by the account holder.
Post Office Time Deposit Account: Tax Saving under 80C
The investments made for 5 year Post Office Time Deposit accounts qualify for exemption under section 80C of Income Tax Act, 1961.
Post Office Time Deposit Account: Premature withdrawal
- Deposits cannot be withdrawn within six months from deposit
- If the account is closed between 6 months and 1 year, then Post Office Savings Account Interest rate will be applicable.
- If 2 or 3 or 5 year Time Deposit account is prematurely closed after 1 year, then interest payable shall be 2% lesser than of the interest rate applicable on the tenure for completed years, and for the months that are less than a complete year — Post Office Savings Interest rates will be applicable.
Post Office Time Deposit Account: How to close account?
The Time Deposit account can be closed prematurely by submitting prescribed application form with passbook at the concerned Post Office.
