Post Office Time Deposit Account

Post Office Time Deposit Account:
A very similar to bank fixed deposit, interest payout is annually but calculated quarterly, you can avail 7.4% interest rate for 5 years tenure

A fixed income source with no risk and the scheme is completely owned by Indian post, auto renewal is available

As we know RBI has started the interest rate hikes, so better to wait for another 6 months to one year before investing in any fixed deposits, you can see some descent fixed deposit interest rates on that time
Post office fixed deposits is also one the safest haven of investment but the rates of interest are low

Features Post Office Time Deposit Account:
  • Minimum deposit is 200 rupees and maximum no limit

  • Interest rates are based on tenure of the deposits as follows:
    Tenure                Interest Rates (%)
    1year                     6.6
    2year                     6.7
    3year                     6.9
    5year                     7.4
  • Account can open any individual

  • Cheques & cash can be accepted at the time of account opening

  • Nominee facility also available at the time of opening the account

  • You open any number of accounts if you want no limits

  • Accounts can be transfer from one post office to other

  • A minor having 10 years of age or above is also eligible to open the account

  • Joint accounts can opened

  • A joint account can also convert to single account & Vice Versa

  • After tenure is matured, can also automatically renewed for the same period

  • Investment under 5years period will get income tax benefit

Review of Post Office Time Deposit Account

Positives of Post Office Time Deposit Account:

  • A safest investment

  • Guaranteed money as per the FD rates slab

  • Can claim income tax benefit for 5 years tenure period

Negatives of Post Office Time Deposit Account
  • Interest rates are low comparing with banks, you can get more interest rates in case of banks, and some banks are offering highest FD rates than post office interest rates

  • Interest earned under this scheme is taxable, subject to 10% deduction on capital gains

  • Not a right time to invest, invest after RBI rate hikes