In Focus

Hindustan Times


By Neha Yadav
Published Sep 15, 2022

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Post Office Time Deposit Scheme

Credits: Flickr / PL Tandon

Post Office Time Deposit Scheme (POTD) is an investment scheme offered by the government operated postal system, India Post

Under this scheme, people can open an account for a fixed duration, depending upon their choice for 1 year, 2 years, 3 years, and 5 years

Credits: Flickr / Ken

A single adult or a combination of up to 3 adults is eligible to open a POTD account

Credits: Twitter / Uttar Pradesh Postal Circle

Minors above 10 years of age can also open an account in his/her name. For minors aged below 10 years, the POTD account can be opened by a guardian

Credits: Flickr / abrinsky

A guardian can also open an account on behalf of a person with an unsound mind. Eligible individuals can open any number of accounts under the scheme 

Credits: Flickr / Vignesh Waran

The POTD account can be opened with deposits minimum of Rs. 1000 and in multiples of 100. There is no maximum limit set up for the investment scheme

Credits: Flickr/ Debanjan Maitra 

The interest shall be payable annually with rates being offered - 5.5% from 1 year to 3 years accounts and 6.7% for 5 years 

Credits: Flickr / Michael Pieracci

The deposit amount at maturity is repayable after the expiry of the account from the date of opening

Credits: Unsplash

People with 5 year POTD accounts are eligible for deductions and benefits under Section 80C of the Income Tax Act, 1961

Credits: Unsplash

Any depositor can avail extension from the date of maturity at the time of opening the account

Credits: Unsplash

A 1 year account can be extended within 6 months of maturity. A 2 year account can be extended within 12 months and for 3 and 5 years' account, the corresponding duration is 18 months

Credits: Unsplash

One can also transfer their Time Deposit account as security by submitting an acceptance letter, signed by the person to whom it will be transferred 

Credits: Unsplash

No deposit can be withdrawn before the expiry of six months from the date of deposit

Credits: Unsplash

A Time Deposit account may be pledged or transferred as security to these authorities

Credits: Unsplash

1. The president of India or Governor of the State 
2. RBI,  Scheduled Bank, Co-operative society, or Co-operative bank

Credits: Flickr / Amit Bhardwaj

3. A public or private corporation 
4. Government company, local authority, or a h
ousing finance company

Credits: Flickr / Tathagata Sikdar

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Credits: Unsplash