Fixed Deposits: Check interest rates offered by post office for different tenors

The post-office term deposit is similar to a bank fixed deposit, where a person can deposit money for a definite time period and earn a fixed return through the tenure of the deposit.

At the end of the deposit’s tenure, the maturity amount comprises the capital deposited and the interest it earns.

Who can open

A  minor above 10 years in his own name.

A guardian on behalf of a minor

A guardian on behalf of a person of unsound mind

A single adult

Joint Account (up to 3 adults) (Joint A or Joint B)

Deposits

Account type for 1 year, 2 years, 3 years, 5 years.

An account can be opened with a 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annually, No additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.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 an application.

The investment under 5 year TD qualifies for the benefit of section 80C of the Income Tax Act, 1961.

Maturity

Deposit amount shall be repayable after the expiry of 1 year, 2 years, 3 years, 5 years (as the case may be) from the date of opening.

Extension of Account

On maturity, the depositor may further extend the TD account for another tenure for which the account was initially opened.

TD account can be extended from the 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 an account, a depositor can submit a request for an extension of the account from the date of maturity.

TD account can be extended after maturity by submitting the prescribed application form at the concerned Post Office along with the passbook.

Interest rate applicable to respective TD account on the day of maturity shall be applicable to the extended period.

Note: The information is sourced from the website of the department of posts, ministry of communication, Government of India

Tenure wise term deposit rates of the post office