Outlook Money
Post Office Time Deposit accounts are short-term investment avenues offering guaranteed fixed income.
Account holders can choose a lock-in period of one, two, three, and five years, offering 6.9, 7.0, 7.1, and 7.5 per cent, respectively.
The minimum investment is Rs 1,000; after that, in multiples of Rs 100. There is no defined maximum limit.
One can open an individual or a joint account with up to three adult members. Children older than 10 can also open an account, provided they are under the supervision of an adult member.
A Post Office Time Deposit account for five years offers tax relief under Section 80C of the Income-tax Act, 1961.
A premature exit is allowed under certain conditions. No withdrawals are permitted before six months from the date of deposit.
Compiled By Himani Verma