Fixed deposit scheme in Post Office offers guaranteed returns without any risk. You can open FD account for 1 year, 2 year, 3 year and 5 years as suitable.
About Post Office Fixed Deposit Scheme 2024
Central government revises Small Savings Scheme interest rates on a quarterly basis. Currently, fixed deposit scheme offers interest rate b/w 6.9% to 7.5% w.e.f 1 April 2024. Investment in 5 years FD account offers tax benefits under 80C of Income Tax Act. Maximum FD Account Maturity Period (Lock-In Period) is 5 years without any maximum limit on investment amount.
Who can open FD Account in Post Office
- a single adult
- Joint Account (up to 3 adults) (Joint A or Joint B)
- Guardian on behalf of minor
- Guardian on behalf of person of unsound mind
- Minor above 10 years in his own name.
Deposit in PO National Savings Time Deposit Scheme
- Account type for 1 year, 2 year, 3 year, 5 year.
- Account can be opened with minimum of Rs. 1000 and in multiple of Rs. 100.
- No maximum limit for investment.
- Interest shall be payable annually, No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.
- The annual interest may be credited to the savings account of the account holder by submitting application.
- The investment under 5 year TD qualifies for the benefit of section 80C of Income Tax Act, 1961.
Post Office Time Deposit Account Interest Rate
From 01.04.2024, interest rates under National Savings Time Deposit (TD) Account varies b.w 6.9% to 7.5% per annum. Distribution of interest rates is as under:-| Period | Interest Rate |
| 1 year account | 6.9% |
| 2 year account | 7.0% |
| 3 year account | 7.1% |
| 5 year account | 7.5% |
Interest is payable annually but is calculated quarterly.
Post Office Fixed Deposit Account Opening Form PDF
If you want to open fixed deposit scheme account, then you can follow process here.
- First of all, go to official website indiapost.gov.in
- Once you open homepage, click "Post Office Savings Bank" tab.
- Then page showing Post office savings schemes will open.
- Click at "National Savings Time Deposit Account (TD)" link.
- Link containing time deposit scheme description as well as to open form for fixed deposit scheme will open.
- Click "Forms available" link or https://www.indiapost.gov.in/VAS/Pages/Form.aspx#SavingBank
- Click at "Application Form for Opening of Account" link.
- Then Post office fixed deposit scheme application form PDF will open on your screen.
- You can download this FD form, take a printout, fill it manually and submit it at nearest post office branch to open your national savings time deposit scheme account.
Maturity of FD Account in Post Office
Deposit amount shall be repayable after expiry of 1 year, 2 year, 3 year, 5 year (as the case may be) from the date of opening.Application form for FD account closure on maturity - https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/Closure.pdf
Premature Closure of PO Time Deposit Account
- No deposit shall be withdrawn before the expiry of six months from the date of deposit.
- If TD account closed after 6 month but before 1 year, PO Savings Account Interest rate will be applicable.
- If 2/3/5 year TD account prematurely closed after 1 year, interest shall be calculated 2 % less than of TD interest rate (i.e. 1/2/3 years) for completed years, and for part period less than a year, PO Savings Interest rates will be applicable.
- TD account can be closed prematurely by submitting prescribed application form with pass book at concerned Post Office.
Application Form for Premature Closure of time deposit account - https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/Premature.pdf
Extension of Fixed Deposit Scheme Account
- On maturity depositor may further extend TD account for another tenure for which account was initially opened.
- TD account can be extended from date of maturity within the following prescribed period.. 1 year TD = within 6 months of maturity. 2 year TD = within 12 months of maturity. 3/5 year TD = within 18 months of maturity.
- At the time of opening of account depositor can submit request for extension of account from the date of maturity.
- TD account can be extended after maturity by submitting prescribed application form at concerned Post Office along with passbook.
- Interest rate applicable to respective TD account on the day of maturity shall be applicable to the extended period.
Application Form for Extension of FD Account - https://www.indiapost.gov.in/VAS/DOP_PDFFiles/form/ExtensionRD.pdf
Minimum Amount to Open FD/TD Account
As per the official Indian Post website, people can make minimum deposit of Rs. 1000 in FD account. There shall be any number of deposits in the account in multiple of Rs. 100 thereafter. No maximum limit is specified for deposits in fixed deposit account in post offices.Maximum Balance that can be Retained in TD/FD Account
The maximum balance which can be retained in FD account has not been specified. Any person can deposit any amount in multiples of Rs. 100 after keeping a minimum balance of Rs. 1000 in FD account.
Pledging of TD Account
- A TD account may be pledged or transferred as security, by submitting prescribed application form at concerned Post Office supported with acceptance letter from the pledgee.
- Transfer/pledging can be made to the following authorities.
- The President of India/Governor of the State.
- RBI/Scheduled Bank/Co-operative Society/Co-operative Bank.
- Corporation (public/private)/Govt. Company/Local Authority.
- Housing finance company.
If you want to get more details regarding SCSS account, go to official website indiapost.gov.in
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