Post Office Time Deposit Scheme:- The Post Office Time Deposit Account (POTD) is among India Post’s most well-known financial offerings. Although the program is open to anyone, it is particularly well-liked in remote and rural areas of the country where underbanking is a typical occurrence and access to investment goods is limited. For further information regarding the POTD Scheme, read this article till the end.
Post Office Time Deposit Scheme 2024
Under the Post Office Time Deposit, also known as the National Savings Time Deposit plan, the Indian government offers a way of financial savings. It has a tempting interest rate when compared to regular savings bank accounts. Investors can join this plan by contacting any Indian post office. Investing in national savings time deposit accounts is an excellent option for savers since they provide greater returns and more flexibility.
| Article About | Post Office Time Deposit Scheme |
| Also known As | National Savings Time Deposit Account |
| Launched by | India Post |
| Objective | to encourage the nation’s residents to save money and make sure they receive risk-free returns on their investments |
| Official Website | indiapost.gov.in |
POTD Scheme Interest Rates
At the beginning of the fiscal year, the Indian Finance Ministry reviews the program’s interest rates every quarter. The interest rate is determined by taking the yield on government securities and dividing it by the yield on securities in the government sector. The post office time deposit account’s interest rates are as follows, and they are valid from January 1, 2024, to March 31, 2024:
| Account Tenure | Applicable Interest Rate |
| 1 Year | 6.9% |
| 2 Years | 7% |
| 3 Years | 7.1% |
| 5 Years | 7.5% |
If you do not want to receive interest every year then you can transfer the interest to your post office savings account, which earns 4% interest annually. However, in the case of POTD with one year tenure, this is not possible.
You have the option to transfer this interest to a 5-year recurring deposit account in the same bank or post office, instead of paying the interest in 12 monthly installments. In this situation, the depositor will have to submit a new application to the office or bank before the date the interest becomes due.
Post Office Time Deposit Scheme Benefits
- There is no upper limit on investments put into a Post Office Time Deposit Account (POTD).
- Your investment will benefit thanks to the POTD Scheme.
- Five-year time deposits are eligible for a tax deduction under Section 80C of the Income Tax Act.
- Children as young as 10 years old can independently manage accounts.
- A facility for nominations is included.
- It is possible to invest from as low as Rs 1,000, and there is no limit on the maximum investment. They are quite adaptable.
- It is easy to move accounts across post offices, and you may take deposits out early.
- POTD investments are regarded as safer than FDs since a state guarantees both the principal amount deposited and the interest earned.
POTD Scheme Features
- Post office time deposit schemes let you make one deposit per account, good for one, two, three, or five years.
- The account holder’s investments will earn returns, according to this post office scheme.
- Transferring time deposit accounts across post offices is easy.
- Joint or individual ownership is possible for time deposit accounts.
- Time deposit account users can choose to prolong the duration of their account once it matures.
- If funds in a mature account are not removed before the maturity date, they will be automatically renewed for the term of the original deposit at the applicable interest rates.
- The quantity of time deposit accounts that can be opened is unlimited.
- There is a Rs 1,000 minimum deposit required for this plan. It is crucial to bear in mind that the deposit amount can only be done in multiples of Rs 100. If not, multiples of Rs 100 will be maintained credited to the account, and the remaining sum will be repaid interest-free.
- Investors may now create POTD accounts at all public sector banks as well as a select few private banks, such as ICICI Bank, Axis Bank, HDFC Bank, and others, according to a recent directive from the central government.
- For investors who want to substitute bank fixed deposits, POTD investments are a possibility.
Eligibility Criteria
- Any Indian resident may create and maintain this account either by themselves or jointly.
- A minor who is at least ten years old can create and manage this account.
- A minor may request that their parent or legal guardian create a POTD account on their behalf.
- Indian nationals living abroad are not eligible to create a POTD account.
- The following funds or organizations are not eligible for the Time Deposit Scheme:
- Trust funds
- Welfare funds
- Regimental funds
- Institutional account holders
Required Documents
- SB3
- SB13 (pay-in slip)
- Specimen Signature Slip
Post Office Time Deposit Scheme 2024 Online Application Process
To enrolled in Indian Post Office online banking services, follow the steps given below:-
- First, visit the eBanking website of the Indian Post Office.
- Now, “Log In” with your registered “User ID.
- Then, under the General Services menu, click on the “Service Request” option.
- Now, to start the Post Office Time Deposit opening request, follow the instructions on the screen.
Offline Procedures
- Go to the post office in your area.
- Now, Get the POTD application form.
- To open your POTD account, fill out the form carefully.
- Then attach all the required documents,
- Now submit this form with at least Rs 1,000 to the post office.
