Post Office Time Deposit Account: Here is all you need to know about the small savings scheme

Features of the scheme: 

-The account can be opened by a single adult and a joint account can be opened by a maximum of 3 persons. A minor who is older than 10 years can also open an account or a guardian can open the account on behalf of a minor/person of unsound mind.

- Account can be opened by cash or a cheque.

-Premature encashment not allowed before 6 months. If closed between 6 to 12 months from the date of opening, Post Office Savings Account interest rate will be payable, which is 4 percent per annum.

-The investment under 5 Years TD qualifies for the benefit of Section 80C.

-Any number of accounts can be opened in any post office. Nomination facility is available at the time of opening and also after opening of the account. The account can be transferred from one post office to another.

- Minor after attaining majority has to apply for conversion of the account in his or her name.

- TD accounts can be extended by giving an application in the account office.

- 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annually, no additional interest shall be payable on the amount of interest that has become due for payment but not withdrawn by the account holder.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 at his option.

-Online account opening facility is available through Intra Operable Netbanking/Mobile Banking