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Modified on : 6 May, 2018

Post Office Time Deposit Accounts

Post Office Time Deposit Accounts offers the facility of investing surplus funds at relatively higher rates of interest. The deposits made under this scheme for a period of 5 years are also eligible for tax benefits under section 80C of Income Tax Act.

Salient features Post Office Time Deposits

Download Fillable Post Office forms
Use Post Office Small Saving Calculator
FeatureDescription
EligibilityAny individual singly or jointly with another adult.

An adult individual on behalf of a minor.

Minimum amount₹ 200/-
Maximum amountIn multiples of ₹ 200/-. No upper limit.
Maturity periodOne year, Two years, Three years and Five years.
Auto RenewalA deposit account opened in a Post Office working on CBS platform shall be automatically renewed on maturity, for the same period it was opened initially at the rate of interest prevailing on date of such renewal.
Nomination facilityAvailable
Interest Rate
1 Year2 Years3 Years5 Years
Upto 30.11.20116.25%6.50%7.25%7.50%
01.12.2011 to 31.03.20127.70%7.80%8.00%8.30%
01.04.2012 to 31.03.20138.20%8.30%8.40%8.50%
01.04.2013 to 31.03.20148.20%8.20%8.30%8.40%
01.04.2014 to 31.03.20168.40%8.40%8.40%8.50%
01.04.2016 to 30.09.20167.10%7.20%7.40%7.90%
01.10.2016 to 31.03.20177.00%7.10%7.30%7.80%
01.04.2017 to 30.6.20176.90%7.00%7.20%7.70%
01.07.2017 to 31.12.20176.80%6.90%7.10%7.60%
01.01.2018 onwards6.60%6.70%6.90%7.40%
  • The interest on deposits is calculated on quarterly compounding basis and is payable annually.
NominationAvailable
Premature withdrawalAllowed after expiry of six months from the date of deposit, subject to following conditions :

For accounts opened upto 30.11.2011: No interest is paid for the deposit withdrawn prematurely after six months but before the expiry of one year.

In case of deposits for two, three or five years withdrawn prematurely after the expiry of one year from the date of deposit, interest is payable for the completed years and months at 2% lower rate than specified for the completed period.

For Accounts opened on or after 1st December 2011:

Where a deposit in 1-Year, 2-Years, 3-Years or 5-Years account is withdrawn prematurely after 6 months but before expiry of one year from the date of deposit, simple interest at the rate applicable to Post Office Saving Account from time to time shall be payable.

In case of deposits for two, three or five years withdrawn prematurely after the expiry of one year from the date of deposit, interest is payable for the completed years and months at 1% lower rate than specified for the completed period.

Tax benefitsAvailable for Term Deposits of 5 years
Interest TaxabilityWith effect from 1st April 2018 (AY 2019-20) Senior Citizens (i.e. Residents aged 60 years or above) are eligible for exemption of interest income from Bank / Post Office deposits (Saving accounts / Time deposits / RD accounts) upto ₹ 50,000/- under Section 80TTB. (They are, however, not eligible for rebate under section 80TTA.)

Account holder other than Senior Citizens are not eligible for any exemption.

Other features
A deposit can be renewed with retrospective effect, subject to the following :
Period elapsed from the date of maturityMinimum period of re-deposit
6 months or less1 year
More than 6 months up to 12 months2 years
More than 12 months up to 18 months3 years
More than 18 months5 years

Agency Commission0.5%

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