About Indian Post Office

For over 150 years, the Department of Posts has been the backbone of India’s communication structure. It has made people’s lives easy by delivering mails, providing Small Savings Schemes and life insurance cover etc. The Indian post office has 1,55,015 post offices making it one of the most widely distributed postal network in the world.

The Post Office Savings Scheme offers PO Savings account, 5 year PO Recurring Deposit account, PO Time deposit account, PO monthly income account scheme, Senior citizen savings scheme, 15 year Public Provident fund account, National savings certificates, Kisan Vikas Patra and Sukanya Smariddhi accounts.

Features of time deposits of Indian Post Office

• The time deposit account can be opened for 5 years.
• Any number of accounts can be opened in any post office.
• A minor of 10 year or above can open and manage the account.
• Joint accounts can be opened by two adults.
• An individual can convert the time deposit account from single to joint and vice versa.
• Fixed deposit schemes are available for a period of 5 years.
• The minimum amount that can be deposited is Rs.200, there is no limit on the maximum amount.
• The depositor can open a time deposit with the post office for a minimum of 1 year.
• The investments made under 5 years are eligible for tax benefits and deductions under Section 80C of the Income Tax Act of India, 1961.
• The accounts can be ported to other post offices quite easily.
• Depositor can open any number of time deposit accounts.
• On maturity, the account is automatically renewed for the period it was initially opened.
• NRIs cannot invest in the time deposit schemes offered by the post office.

Post Office Time Deposit interest rates

For a duration of 1 year:
The Indian Post Office offers 8.20% interest rate for the time deposits for a tenure of 1 year.

For a duration of 2 years:
8.30% interest rate is offered to the depositor for time deposit of two years.

For a duration of 3 years:
8.40% interest rate is offered for a tenure of 3 years.

For a duration of 5 years:
Post office offers 8.50% interest rate to their depositors.

The Indian Post Office doesn’t offer any special interest rates to the senior citizen. There is no limit to the amount that can be deposited neither is a limit on how many time deposit accounts one individual opens.