Post Office Time Deposit Scheme

Salient Features:

1 year, 2 year, 3 year and 5 year time deposits can be opened.

Interest payable annually but compounded quarterly:

Period	Rate of Interest
One Year	8.2%
Two Years	8.3%
Three Years	8.4%
Five Years	8.5%

Minimum amount of deposit is Rs 200/- and in multiples of Rs 200/- thereafter. No maximum limit.

Investment up to Rs 1,00,000/- per annum qualifies for Income Tax Rebate under section 80C of IT Act.

Interest income is taxable.

Facility of redeposit on maturity of an account.

In case of premature closure of 1 year, 2 Year, 3 Year or 5 Year account on or after 01.12.2011 between 6 months to one year from the date of deposit, simple interest at the rate applicable to from time to time to post office savings account shall be payable.

2 year, 3 year or 5 year accounts on or after 01.12.2011 if closed after one year, interest on such deposits shall be calculated at a discount of 1% on the rate specified for respective period as mentioned in the concerned table given under Rule 7 of Post office Time Deposit Rules.

Account can be pledged as security against a loan to banks/ Government institutions.

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.