{"id":9589,"date":"2022-07-27T16:54:08","date_gmt":"2022-07-27T11:24:08","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=9589"},"modified":"2022-07-27T16:54:09","modified_gmt":"2022-07-27T11:24:09","slug":"post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/","title":{"rendered":"Post Office Time Deposit: Benefits, Tax Deduction, Account Opening, Premature Withdrawal"},"content":{"rendered":"\n<p>With ~1.5 lakh offices across the country, India Post is the most widely distributed post network in the world. Apart from postal services, India Post also offers certain financial services, including savings schemes. One such savings scheme is the Post Office Time Deposit. Owing to India Post\u2019s vast network, Post Office Time Deposit is mainly famous in rural areas whose residents are underserved by banks.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#What-is-a-Post-Office-Time-Deposit-POTD\" title=\"What is a Post Office Time Deposit (POTD)?\">What is a Post Office Time Deposit (POTD)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Types-of-Post-Office-Time-Deposit-accounts\" title=\"Types of Post Office Time Deposit accounts\">Types of Post Office Time Deposit accounts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Features-and-benefits-of-Post-Office-Time-Deposit\" title=\"Features and benefits of Post Office Time Deposit\">Features and benefits of Post Office Time Deposit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Post-Office-Time-Deposit-interest-rate\" title=\"Post Office Time Deposit interest rate\">Post Office Time Deposit interest rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Post-Office-Time-Deposit-interest-payout\" title=\"Post Office Time Deposit interest payout\">Post Office Time Deposit interest payout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Eligibility-criteria-for-Post-Office-TD\" title=\"Eligibility criteria for Post Office TD\">Eligibility criteria for Post Office TD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#How-to-open-a-Post-Office-Time-Deposit\" title=\"How to open a Post Office Time Deposit?\">How to open a Post Office Time Deposit?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Get-the-application-form\" title=\"Get the application form\">Get the application form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Fill-the-form\" title=\"Fill the form\">Fill the form<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Submit-the-form\" title=\"Submit the form\">Submit the form<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Documents-required-for-Post-Office-Time-Deposit-scheme\" title=\"Documents required for Post Office Time Deposit scheme\">Documents required for Post Office Time Deposit scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Taxation-benefits-of-Post-Office-Time-Deposit-scheme\" title=\"Taxation benefits of Post Office Time Deposit scheme\">Taxation benefits of Post Office Time Deposit scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Premature-withdrawal-of-Post-Office-TD\" title=\"Premature withdrawal of Post Office TD\">Premature withdrawal of Post Office TD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Who-should-invest-in-POTD\" title=\"Who should invest in POTD?\">Who should invest in POTD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#POTD-vs-bank-FD\" title=\"POTD vs bank FD\">POTD vs bank FD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Post-Office-Time-Deposit-FAQs\" title=\"Post Office Time Deposit FAQs\">Post Office Time Deposit FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#What-is-a-time-deposit-in-the-post-office\" title=\"What is a time deposit in the post office?\">What is a time deposit in the post office?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#What-is-the-minimum-investment-for-a-POTD\" title=\"What is the minimum investment for a POTD?\">What is the minimum investment for a POTD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Can-I-avail-tax-benefits-on-POTD\" title=\"Can I avail tax benefits on POTD?\">Can I avail tax benefits on POTD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Is-TDS-applicable-on-Post-Office-Time-Deposit\" title=\"Is TDS applicable on Post Office Time Deposit?\">Is TDS applicable on Post Office Time Deposit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Is-interest-on-Post-Office-Time-Deposit-taxable\" title=\"Is interest on Post Office Time Deposit taxable?\">Is interest on Post Office Time Deposit taxable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Can-I-transfer-Post-Office-Time-Deposit-from-one-post-office-to-another\" title=\"Can I transfer Post Office Time Deposit from one post office to another?\">Can I transfer Post Office Time Deposit from one post office to another?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Is-premature-closure-of-POTD-allowed\" title=\"Is premature closure of POTD allowed?\">Is premature closure of POTD allowed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.tickertape.in\/blog\/post-office-time-deposit-benefits-tax-deduction-account-opening-premature-withdrawal\/#Can-I-open-a-Post-Office-Time-Deposit-account-online\" title=\"Can I open a Post Office Time Deposit account online?\">Can I open a Post Office Time Deposit account online?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-a-Post-Office-Time-Deposit-POTD\"><\/span><strong>What is a Post Office Time Deposit (POTD)?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A POTD shares many similarities with bank <a href=\"https:\/\/www.tickertape.in\/blog\/deposit-insurance-for-fixed-deposit\/\">fixed deposits<\/a>. The principal amount deposited in a Post Office Time Deposit scheme earns interest throughout the predetermined tenure. On maturity, you get access to the principal amount plus interest thereon.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types-of-Post-Office-Time-Deposit-accounts\"><\/span><strong>Types of Post Office Time Deposit accounts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are four types of POTD accounts. Depending on the tenure of the account, an investment in Post Office Time Deposit is locked in for 1 yr, 2 yr, 3 yr or 5 yr.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features-and-benefits-of-Post-Office-Time-Deposit\"><\/span><strong>Features and benefits of Post Office Time Deposit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li><strong>Joint account:<\/strong> Individuals are allowed to open joint accounts. At maximum, three persons can hold one account together<\/li><li><strong>Transferability:<\/strong> You are allowed to transfer a Post Office Time Deposit account across post offices in the country<\/li><li><strong>Minor:<\/strong> Individuals aged 10 yrs and above can also open and manage a POTD account<\/li><li><strong>Lock-in periods and extension of maturity:<\/strong> As discussed, POTD offers accounts with four lock-in periods &#8211; 1 yr, 2 yr, 3 yr, and 4 yr. You can extend these maturity periods by applying to the concerned post office<\/li><li><strong>Tax benefits:<\/strong> Only the 5-yr Post Office Time Deposit scheme comes with tax benefits. You can claim a deduction of up to Rs. 1.5 lakh under Section 80C for this variant<\/li><li><strong>Interest rates:<\/strong> Post Office Time Deposit <a href=\"https:\/\/www.tickertape.in\/blog\/flat-interest-rate-vs-reducing-balance-interest-rate\/\">interest rate<\/a> is more or less in line with that of a Fixed Deposit (FD). A table on POTD interest rates is given below. The returns are stable and assured as the scheme is backed by the government<\/li><li><strong>Interest post maturity:<\/strong> You can continue your deposit after maturity, but it ceases to earn additional interest. However, accounts with post offices having core banking solutions get renewed for the initial maturity period. The account earns returns at the Post Office Time Deposit scheme interest rate prevailing at the time of renewal<\/li><li><strong>Minimum and maximum deposit amount:<\/strong> A time deposit in a post office has flexible investment options. The minimum deposit accepted by a Post Office TD is as low as Rs. 200, while there is no limit on the maximum amount.<\/li><li><strong>Mode of deposit:<\/strong> You can deposit cash or cheque. In the case of a cheque deposit, the date of encashment is considered the account opening date<\/li><li><strong>Premature withdrawal:<\/strong> You can only withdraw your investment in a Post Office Time Deposit after the completion of 6 months from the account opening date. In case of withdrawals before 6 months, the interest rate will be reduced to that of a savings account, which is 4% p.a.<\/li><li><strong>No. of accounts:<\/strong> There is no restriction on the number of POTD accounts an individual can open<\/li><li><strong>Nomination facility:<\/strong> You are allowed to add nominees to your accounts<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post-Office-Time-Deposit-interest-rate\"><\/span><strong>Post Office Time Deposit interest rate<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The interest rate on POTD is reviewed by the Finance Ministry every quarter of the financial year. The interest rate is ascertained based on the yield on <a href=\"https:\/\/www.tickertape.in\/blog\/government-securities\/\">government securities<\/a> of similar maturities with a spread of 0.25%.<\/p>\n\n\n\n<p>Following is the table of interest rates for POTD accounts with varying tenures. These are applicable from 1st July 2022 to 30th September 2022.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Account tenure<\/strong><\/td><td><strong>Interest rate<\/strong><\/td><\/tr><tr><td>1 yr<\/td><td>5.5%<\/td><\/tr><tr><td>2 yrs<\/td><td>5.5%<\/td><\/tr><tr><td>3 yrs<\/td><td>5.5%<\/td><\/tr><tr><td>5 yrs<\/td><td>6.7%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post-Office-Time-Deposit-interest-payout\"><\/span><strong>Post Office Time Deposit interest payout<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Interest on POTD is compounded quarterly but paid annually. In case you do not want to withdraw interest every year, you can request the post office to transfer it to your savings account in the same post office. This facility is not available for 1-yr POTD.<\/p>\n\n\n\n<p>Alternatively, you can instruct the interest to be redirected to a 5-yr recurring deposit in the same post office or bank in lieu of 12 monthly instalments. In this case, you must submit an application to the post office or bank before the interest payment due date.<\/p>\n\n\n\n<p>Note that the savings account has to be in the same post office. Further, this facility is only available at Head or Departmental Sub Offices, not sub-offices and branch offices.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility-criteria-for-Post-Office-TD\"><\/span><strong>Eligibility criteria for Post Office TD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Indian residents are allowed to open and operate this account either individually or jointly<\/li><li>A minor aged 10 yrs or above is allowed to open and operate POTD<\/li><li>Parents\/Guardians can open a Post Office Time Deposit account on behalf of a minor<\/li><li>Non-resident Indians, institutional account holders, trust funds, regimental funds, and welfare funds cannot open a Post Office TD account<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-open-a-Post-Office-Time-Deposit\"><\/span><strong>How to open a Post Office Time Deposit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-howto\" class=\"rank-math-block\" >\n<div class=\"rank-math-howto-description\">\n\n<\/div>\n\n<div class=\"rank-math-steps \">\n<div id=\"howto-step-1658920276959\" class=\"rank-math-step\">\n<h3 class=\"rank-math-step-title \"><span class=\"ez-toc-section\" id=\"Get-the-application-form\"><\/span><strong><strong>Get the application form<\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-step-content \"><p>Visit the nearest post office and request the Post Office Time Deposit application form. Alternatively, you can download the Post Office Time Deposit Account Opening Form online.<\/p>\n<\/div>\n<\/div>\n<div id=\"howto-step-1658920306092\" class=\"rank-math-step\">\n<h3 class=\"rank-math-step-title \"><span class=\"ez-toc-section\" id=\"Fill-the-form\"><\/span><strong>Fill the form<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-step-content \"><p>Fill out the Post Office Time Deposit Account Opening Form with the correct details. You will require the following information:<br \/>-Applicant\u2019s name<br \/>-Residential address<br \/>-Applicant\u2019s date of birth<br \/>-Details of your first deposit<br \/>-Know Your Customer (KYC) details<br \/>-Aadhaar card number<br \/>-Nomination details<\/p>\n<\/div>\n<\/div>\n<div id=\"howto-step-1658920334281\" class=\"rank-math-step\">\n<h3 class=\"rank-math-step-title \"><span class=\"ez-toc-section\" id=\"Submit-the-form\"><\/span><strong>Submit the form<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-step-content \"><p>Once you fill out the form, submit it to the post office along with the required documents. Make sure to carry the original documents for in-person KYC verification.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents-required-for-Post-Office-Time-Deposit-scheme\"><\/span><strong>Documents required for Post Office Time Deposit scheme<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>SB3<\/li><li>SB13 (pay-in slip)<\/li><li>Specimen Signature Slip<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taxation-benefits-of-Post-Office-Time-Deposit-scheme\"><\/span><strong>Taxation benefits of Post Office Time Deposit scheme<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Deposits made in a 5-yr POTD are eligible for tax benefits under Section 80C of the <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">Income Tax<\/a> Act. Interest earned is added to the total annual income in the year of receipt and is taxed as per the applicable tax rate. No <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-tds-and-how-to-file-it\/\">TDS<\/a> is applicable on POTD.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Premature-withdrawal-of-Post-Office-TD\"><\/span><strong>Premature withdrawal of Post Office TD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can withdraw funds from your Post Office Time Deposit account only after 6 months from the date of the first deposit. Note the following terms and conditions of premature withdrawal:<\/p>\n\n\n\n<ul><li>In case of withdrawals made after the completion of 6 months but before 1 yr from the date of account opening, simple interest is calculated based on the Post Office Savings Account interest rate<\/li><li>In case of withdrawals made after 1 yr from the account opening date, returns are calculated at 1% lower than the predetermined Post Office Time Deposit interest rate corresponding to the tenure<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who-should-invest-in-POTD\"><\/span><strong>Who should invest in POTD?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>If you are looking for alternatives to bank fixed deposits<\/li><li>If you are a conservative investor who doesn\u2019t want to take risks<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"POTD-vs-bank-FD\"><\/span><strong>POTD vs bank FD<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Although both the schemes are similar, they have certain differences, as discussed in the table below.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Particulars<\/strong><\/td><td><strong>Post Office Time Deposit<\/strong><\/td><td><strong>Fixed Deposit<\/strong><\/td><\/tr><tr><td>Additional interest for senior citizens<\/td><td>Not given<\/td><td>Given<\/td><\/tr><tr><td>Interest payment frequency<\/td><td>Annual<\/td><td>Monthly, quarterly, annually&nbsp;<\/td><\/tr><tr><td>Lock-in period<\/td><td>1-5 yrs<\/td><td>7 days &#8211; 10 yrs<\/td><\/tr><tr><td>Extension<\/td><td>-Prior application<br>-Available only at post offices with core banking facilities<\/td><td>Yes<\/td><\/tr><tr><td>Premature withdrawal<\/td><td>Permitted only after 6 months from the opening date<\/td><td>Depends on the bank\/NBFC<\/td><\/tr><tr><td>Loan against the deposit<\/td><td>Not available<\/td><td>Depends on the bank\/NBFC<\/td><\/tr><tr><td>TDS<\/td><td>Not applicable<\/td><td>Applicable<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Post-Office-Time-Deposit-FAQs\"><\/span><strong>Post Office Time Deposit FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1658920458592\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-a-time-deposit-in-the-post-office\"><\/span><strong>What is a time deposit in the post office?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Post office time deposit is a savings scheme offered by India Post. Like an FD, you <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> the principal amount for a predetermined period and earn interest thereon. You will receive the maturity proceeds\u2014principal + interest\u2014at the end of the tenure.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1658920465207\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-minimum-investment-for-a-POTD\"><\/span><strong>What is the minimum investment for a POTD?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can open a Post Office Time Deposit account with as low as Rs. 200. There is no limit on the maximum amount.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1658920477248\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-avail-tax-benefits-on-POTD\"><\/span><strong>Can I avail tax benefits on POTD?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Only account holders of a 5-yr Post Office Time Deposit can avail a tax deduction under Section 80C.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1658920502808\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is-TDS-applicable-on-Post-Office-Time-Deposit\"><\/span><strong>Is TDS applicable on Post Office Time Deposit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No. TDS is not applicable on POTD.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1658920516576\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is-interest-on-Post-Office-Time-Deposit-taxable\"><\/span><strong>Is interest on Post Office Time Deposit taxable?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Interest earned on this scheme is added to the total annual income of an account holder and taxed at the applicable slab rate.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1658920526166\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-transfer-Post-Office-Time-Deposit-from-one-post-office-to-another\"><\/span><strong>Can I transfer Post Office Time Deposit from one post office to another?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. You can submit a manual application to the post office or the SB10(b) Form.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1658920545539\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is-premature-closure-of-POTD-allowed\"><\/span><strong>Is premature closure of POTD allowed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. But you can only close your POTD account after the completion of 6 months from the opening date. Read above for the applicable terms and conditions.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1658920554047\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Can-I-open-a-Post-Office-Time-Deposit-account-online\"><\/span><strong>Can I open a Post Office Time Deposit account online?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can only download the account opening form online. After filling it out, you must submit the form at the nearest post office branch.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Post Office Time Deposit (POTD) is a savings scheme offered by India Post. It is similar to a fixed deposit and enjoys tax benefits. Read more about POTD here.<\/p>\n","protected":false},"author":27,"featured_media":9592,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1739,1646],"tags":[1709,1710,1703],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/07\/TT-28-July-Post-Office-Time-Deposit-BB-01-scaled.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9589"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=9589"}],"version-history":[{"count":2,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9589\/revisions"}],"predecessor-version":[{"id":9595,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9589\/revisions\/9595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/9592"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=9589"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=9589"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=9589"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}