RD scheme
Features Of Post Office Fixed Deposit Scheme
No upper limit on the investment amount
Interest payout frequency: Yearly
Maturity periods available: 1 year, 2 years, 3 years and 5 years
Interest is calculated on a quarterly basis
Premature withdrawal is allowed after completing 6 months of the maturity period.
FDs with a tenure of 5 years is eligible for tax benefits as per Section 80 C of the Income Tax Act, 1961.
Deposits can be made in cash or cheque
You can avail the nomination facility either while creating the account or at any point during the tenure of the deposit.
Account is transferrable between post offices
No limit on the number of accounts that can be created in the post office
Can be maintained as a joint account between 2 adults
A joint account can be converted into a 'single account' and vice versa.
When an accountholder who is a minor legally becomes an adult, they need to request a conversion
Minors who are of the age 10 and above can maintain a TD account
Upon maturity, FDs get automatically renewed for a period which is equal to the original tenure.
Categorization Of Post Office FD Applicants
The applicants for the Term Deposit scheme are divided into three categories based on the total savings in all their individual savings accounts.
Low Risk: Net balance is up to Rs.50,000
Medium Risk: Total balance is above Rs.50,000 to Rs.10 lakh
High Risk: Sum balance is above Rs.10 lakh
KYC Documents To Submit During Post Office TD Application
Applicant must submit attested photocopies of the following documents.
Identity proof (any one)
Aadhaar Card
Electoral ID Card
Ration Card
Driving License
Post Office ID Card
Government-issued ID Card
Pension Payment Order (if applicable)
Below Poverty Line (BPL) Card (if applicable)
MGNREGA Card (if applicable)
ID Card issued by a valid educational institute
Permanent Account Number (PAN) Card (for medium-risk and high-risk customers)
Residential proof (any one)
Passbook issued by a bank or Post Office
Passport
Ration Card
Aadhaar Card
Electricity or Telephone bills (< 3 months old)
Salary slip issued by employer
Certificate issued by a Branch Postmaster/Gram Dak Sewak Delivery Agent/Public Authority/Postman
In case of joint accounts, both the account holders must submit their respective ID and residential proofs.
1 recent colour passport-size photograph of the applicant
2 recent colour passport-size photographs, in case of Extra Departmental Branch Office (EDBO)
Eligibility Criteria To Apply For Post Office Time Deposit scheme
All citizens of India who have attained the legal adult age
Minors of the age 10 and above
How Does Nomination Work For Post Office Time Deposit Scheme?
Upon the death of the depositor, only the appointed nominees or the legal heir can claim the FD returns
In the absence of nomination, the legal heir must submit the following:
Death Certificate of the depositor
Form SB84
A letter of consent signed by all the respective legal heirs
A claim up to a maximum amount of Rs.1 lakh will be settled
A claim higher than Rs.1 lakh would require legal documents such as the will of the depositor.
In case of nomination, the beneficiary must submit the required form and the death certificate of the account holder.
FAQs About Post Office Time Deposit Scheme
How to apply for the Post Office FD scheme?
The following documents need to be submitted to open a Post Office TD:
SB3
SB103
Specimen Signature slip for the Time Deposit
How to transfer my TD account from one Post Office branch to another?
You can either request a transfer of TD either through a written application or the form SB10(b).
What is the minimum amount that I need to invest in a Post Office TD?
You must make an investment of at least Rs.200 in order to operate a Post Office Time Deposit account.
Can I prematurely break my Post Office TD account?
Yes, you can prematurely withdraw from the TD account only after the completion of 6 months of the FD tenure.
https://www.postalblogs.com/2019/05/blog-post.html?m=1
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