Post office time deposit account or FD is also included in the small savings schemes of the post office. Let us know about this scheme in detail.
If you are thinking of investing in the coming days, then you can do it in the Savings Schemes of the Post Office. You definitely get good returns in these schemes. Also, the money invested in it is also completely safe. If the bank defaults, then you get back only Rs 5 lakh. But this is not the case in the Post Office. Apart from this, investment in post office savings schemes can be started with a very small amount. Post Office Small Savings Schemes also include Post Office Time Deposit Account or FD. Let us know about this scheme in detail.
Rate of interest
An interest rate of 5.5 per cent is available for opening an FD account with a tenure of one year in the post office. In this, interest at the rate of 5.5 per cent is also being given on two-year FD. On opening a fixed deposit account with a post office for a period of three years, a person will get interest at the rate of 5.5 per cent. At the same time, there is an interest rate of 6.7 percent on FD accounts with a tenure of 5 years.
Who can open account?
An adult can open an account in the post office. Apart from this, up to three adults can also open a joint account in the post office together. Along with this, up to three adults can also open a joint account in this small savings scheme. A guardian can also open an account on behalf of a weak minded person in the post office. Apart from this, a person above the age of 10 years can also open an account in his own name. Any number of accounts can be opened in this scheme.
Maturity
Maturity of FD account in post office is 1 year, 2 years, 3 years, 5 years. This maturity period is seen from the date of opening of the account.
Tax exemption
On opening an FD account for a period of five years in a post office, the amount deposited in it also gets the benefit of tax exemption under section 80C of the Income Tax Act, 1961.
Premature closure of account
In this scheme, a deposit cannot be withdrawn before the expiry of the period of six months from the date of deposit. If the FD account is closed after six months but before one year, then the interest rate of the Post Office Savings Account will be applicable. If the FD account with tenure of 2,3 or 5 years is closed after one year, the interest will be calculated at 2% less than the rate of FD for the completed years.
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