Post Office Time Deposit (POTD)
Post Office offers many small savings schemes to the investors which offer attractive interest rates with government backing. Likewise, it offers Post Office Time Deposit (POTD) or National Savings Time Deposit Account to Indian individuals where they can get guaranteed returns at competitive interest rates. POTD is similar to a bank fixed deposit with a few elementary differences.
POTD offers four accounts with varying maturity dates. These are of maturity period of one year, two years, three years and five years & the account tenure can be extended by submitting a formal application to the concerned post office. An individual may open many POTD accounts with minimum of Rs.1000 and there is no cap on maximum amount that can be invested.
Basic Fetures of Post Office Time Deposit Scheme
- Investment has a 4 different fixed maturity period of one year, two years, three years and five years
- Minimum amount required to open a POTD Account is as low as Rs.1,000 and in multiple of Rs 100 thereafter
- POTD can be made through cash, Demand Draft, Pay Order or Cheque
- POTD provides guaranteed interest rate
- Premature withdrawal is allowed after 6 months from the date of opening of the account
- POTD account is transferable from one post office to any other post office across India
- Multiple account can be maintained by any individual
- POTD interest rates are reviewed every quarter
- POTD account offers a nomination facility
- Sole or joint (up to three adults) holding is allowed
- No additional interest is offered to the senior citizens
Benefits of Post Office Time Deposit
- Investment Tenure: You can select the tenure of investment according to your choice as per your investment motive. Tenure options available are one year, two years, three years and five years.
- Risk-Free: POTD is backed by the government for the safety of your investment so it is almost a risk-free investment option and a good avenue for retirees and senior citizens.
- Guaranteed Fixed Returns: POTD offers guaranteed and fixed interest rate which is locked for the whole tenure. The interest is calculated on quarterly basis and paid annually.
- Lower Investment Amount: Minimum amount required under POTD Account very low and you can invest only Rs.1,000 and in multiple of Rs 100 thereafter.
- Stability: POTD does not have to face the market fluctuations like equity schemes and hence it offers steady returns.
Post Office Time Deposit Documents Required
Following documents are required to be submitted for opening the POTD account.
- Duly filled application form of Post Office Time Deposit Scheme
- Passport size photographs
- Identity Proof: Copy of PAN card, Aadhaar card, Voter ID, etc.
- Address Proof: Copy of PAN card, Ration card, Aadhaar card, Driving license, Voter ID, etc.
Post Office Time Deposit Interest Rate
The lucrative interest rates applicable on a Post Office Time Deposit Account are listed in the below table. These interest rates are for the period effective from 01.01.2024 to 31.03.2024.
| Tenure | Interest Rate |
|---|---|
| 1 Year | 6.90% |
| 2 Years | 7.00% |
| 3 Years | 7.10% |
| 5 Years | 7.50% |
Post office term deposit interest rate is reviewed every quarter by the Government of India. The interest is calculated quarterly and paid annually.
Interest payment frequency will be yearly and the interest will be paid either in cash or cheque. For the payments more than Rs.20,000 will only be made with a cheque. Additional interest will not be paid on the amount of interest that has become due for payment but not withdrawn by the account holder.
This rate is ascertained on the basis of the yields on government securities. A certain spread over and above the G-sec yield is added to 5-year time deposit. Note that 1-year, 2-year and 3-year time deposit schemes do not carry any spread.
Post Office Term Deposit Interest Rate History
| Scheme | Jan 2023-Mar 2023 | Apr 2023-Jun 2023 | Jul 2023-Sep 2023 | Oct 2023-Dec 2023 | Jan 2024-Mar 2024 | Apr 2024-Jun 2024 | Jul 2024-Sep 2024 |
|---|---|---|---|---|---|---|---|
| PO Time Deposit 1 year | 6.60% | 6.80% | 6.90% | 6.90% | 6.90% | 6.90% | 6.90% |
| PO Time Deposit 2 years | 6.80% | 6.90% | 7.00% | 7.00% | 7.00% | 7.00% | 7.00% |
| PO Time Deposit 3 years | 6.90% | 7.00% | 7.00% | 7.00% | 7.10% | 7.10% | 7.10% |
| PO Time Deposit 5 years | 7.00% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% | 7.50% |
Post Office Time Deposit Auto Renewal
If the investor does not withdraw the balance after the maturity of POTD account, he will not receive any additional interest after the maturity. In case of post offices with core banking solutions (CBS) facility, un-withdrawn matured time deposit will get renewed automatically for the same period it was originally created at the prevailing POTD interest rate which means that the POTD interest rate at the time of maturity will be applicable after renewal.
TD account can be renewed after maturity by submitting prescribed application form at concerned post office along with the passbook.
Post Office Time Deposit Eligibility
- Applicant should be an Indian citizen.
- Applicant should be residing in India.
- Guardian can open account on behalf of minor, however, the minor needs to apply for ownership of the POTD account after he/she reaches the requisite age i.e. 18 years.
- Guardian can open account on behalf of person of unsound mind.
- Minor above 10 years of age can open the account in his own name.
Account can be opened by a single adult or a joint account (Joint A or Joint B) can be opened by maximum up to 3 adults.
Post Office Time Deposit Investment Amount
Investible amount of POTD is as below,
- Minimum Amount: Rs.1000
- Subsequent Amount: in multiple of Rs.100
- Maximum Amount: No limit
How to Invest in Post Office Time Deposit Online?
Outline below is the detailed process to invest in Post Office Time Deposit scheme online through internet banking.
- Step 1: You need to visit the eBanking website of Indian Post.
- Step 2: Enter your user ID and captcha code in the space provided.
- Step 3: Click on 'Log In' button.
- Step 4: You will be logged in to the portal.
- Step 5: Now you can access your account.
- Step 6: Click on 'Service request' tab
- Step 7: Click on 'New Requests' tab
- Step 8: Click on 'TD Accounts- Open an Time Deposit Account' from available options
- Step 9: New page will open
- Step 10: Input all the details required
- Step 11: Click on 'Submit'
- Step 12: Verify the details once again in the next page
- Step 13: Key in your 'Transaction password'.
- Step 14: You will find the details of your RD account along with the maturity date and amount to be deposited every month.
Post Office Time Deposit Premature Withdrawal
Premature withdrawal from POTD account is not allowed within the first 6 months from the date of opening of the account. If the amount is prematurely withdrawn between 6 months and 12 months, the savings account interest rate will be applicable.
If 2-year, 3-year or 5-year TD account is closed prematurely after 1 year, the interest will be calculated as below,
2% less than of TD interest rate for completed years and for any part period less than a year, PO Savings Interest rates will be paid.
Post Office Time Deposit Taxation
Income Tax Benefits: Investment in post office time deposit account for 5 years is eligible for tax savings under Section 80C of the Income Tax Act, 1961 to claim income tax exemptions of up to Rs.1.50 lakhs but these income tax benefits are available only in case of a 5-year POTD account.
Tax Deducted at Source (TDS): There will be a TDS deduction on interest earned for more than Rs 40,000 p.a. (Rs 50,000 in case of senior citizens)
Upcoming Bank Holidays
- 📅 2025 July 06 is a bank holiday in Andaman And Nicobar Island due to Muharram/Ashoora.
- 📅 2025 July 06 is a bank holiday in Mizoram due to MHIP Day.
- 📅 2025 July 11 is a bank holiday in Meghalaya due to Beh Dienkhlam.
- 📅 2025 July 16 is a bank holiday in Uttarakhand due to Harela.
- 📅 2025 July 17 is a bank holiday in Manipur due to Kang (Rathajatra).
- 📅 2025 July 19 is a bank holiday in Tripura due to Ker Puja.
- 📅 2025 July 28 is a bank holiday in Sikkim due to Drukpa Tshe-zi.
