Introduction Monthly Income Scheme National Savings Scheme Kisan Vikas Patra Senior Citizen Scheme Public Provident Fund Time Deposit FAQ

Time Deposit

• Any individual (a single adult or two adults jointly) can open an account.
• Group Accounts, Institutional Accounts and Misc. account not permissible.
• Trust, Regimental Fund or Welfare Fund not permissible to invest.
• 1 Year, 2 Year, 3 Year and 5 Year TD can be opened.
• The investments under this scheme qualify for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.
• Minimum amount of deposit is Rs.200/-.
• No maximum limit.
• Account can be closed after 6 months but before one year without any interest.
• Facility of redeposit on maturity of an account.
• No interest is payable on undrawn interest amount.
• A Minor who has attained the age of 10 years can open the account in his/her own name to be operated directly.
• Non Resident Indian / HUF can not open the account.
• Any number of accounts can be opened.
• Two, three and Five years accounts can be closed after one year at a discounted rate of interest.
• Deposits not drawn on maturity are eligible to saving account interest rate for a maximum period of two years.
• Account can be pledged as security against a loan to banks/ Government institutions.
• Accounts are transferable from one Post office to any Post office in India.
• Rebate under section 80-C is not admissible.
• Interest income is taxable.
• Deposits are exempt from wealth tax.
• No T.D.S.
• Nomination facility available.