Post Office Time Deposit Schemes

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For more than a century now, post offices have been working in India and their reach is far and wide. They are able to reach even the farthest of rural areas where banks fail to operate. Apart from just delivering mails, post offices have also spread their reach in insurance sector, small savings account scheme and money transfer services. The post office savings account scheme is presently one of the oldest as well as largest banking enterprises in the country. The total number of operative savings account comes up to a total of more than 238 million accounts.The different types of savings account schemes offered by post offices are mentioned below:


·         Post office savings account.
·         Post office recurring deposit account.
·         Post office monthly income account scheme.
·         Post office time deposit account.
·         Senior citizen savings scheme.
·         15 year public provident fund account.
·         National savings certificate.
·         Kissan Vikas Patra.
·   
Post office time deposit scheme is one of the savings account schemes offered by the post offices to the general public. It is the most sought after savings account scheme as compared to other schemes. It provides the option to the account holder to invest their extra and surplus fund to the post offices at a much elevated rate of interest.




Benefits of Post Office Time Deposit Schemes Tax

The following are the various advantages of this account:

·         The deposits in this account earn a higher rate of interest.
·         Multiple accounts can be held by the individual.
·         Even minors have the facility to open this account.
·         The facility to convert single account to joint account and vice versa is available.
·         The facility of nomination is made available to the individual.
·         This account can be opened with a minimum amount as low as Rs. 200.
·         There is no such maximum limit on the amount deposited.
·         The accounts can easily be transferred from one post office to another.
·         Upon maturity, the account gets renewed on its own for the same tenure at which it was opened previously.
·         The account holders enjoy tax benefits for term deposits of 5 years.
·         The interest earned is fully taxable under this account.
·         Post offices have a far and wide approach countrywide. It has reached to even the farthest areas. Thus, people can easily open deposit accounts with post office.  Especially the ones in rural areas where banks are not available.
·         The account holders also have the benefit to withdraw the funds before time if any need arises. But this premature withdrawal of funds is subjected to certain conditions laid down by the post offices.








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