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Post Office Time Deposit Scheme offers the facility of investing surplus funds at relatively higher rates of interest. The deposits made under this scheme for a period of 5 years are also eligible for tax benefits under section 80C of Income Tax Act.
| Who can open? | Any individual singly or jointly with another adult. An adult individual on behalf of a minor. | ||||||||||
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| Minimum amount | Rs. 200/- | ||||||||||
| Maximum amount | In multiples of Rs. 50/-. No upper limit. | ||||||||||
| Maturity period | One year, Two years, Three years and Five years. | ||||||||||
| Nomination facility | Available | ||||||||||
| Interest Rate |
The interest on deposits is calculated on quarterly compounding basis and is payable annually. | ||||||||||
| Premature withdrawal |
Allowed after expiry of six months from the date of deposit, subject to following conditions : No interest is paid for the deposit withdrawn prematurely after six months but before the expiry of one year. In case of deposits for two, three or five years withdrawn prematurely after the expiry of one year from the date of deposit, interest is payable for the completed years and months at 2% lower rate than specified for the completed period. | ||||||||||
| Deduction u/s 80C | Available w.e.f. Financial Year 2007-08 i.e. Assessment Year 2008-09 for Term Deposits of 5 year. | ||||||||||
| Interest Taxability | Taxable | ||||||||||
| Other features | A deposit can be renewed with retrospective effect, subject to the following:
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