Post Office provides many kinds of services, but some of them are of immense use. India Post offers many savings schemes with various interest rates through a network of 1.5 lakh post offices spread across the country.
One of these schemes is the “Term deposit or Time deposit”. It is also called Post Office Fixed Deposit or POFD account. According to the India Post website, interest is given on a year deposit basis in a time deposit account, but it is calculated on a quarterly basis.
How to open an account?
Anyone can open an account on post office with fixed deposit cash or check. According to the India Post, in the case of a check, the accounts of the government will be considered as open from the date of the check. This account can be opened in the name of a minor and a joint account in the name of two adults. Only resident Indians can open and manage this FD account either singly or jointly.
For opening post office FD account, a minimum amount of 200 rupees can be deposited. Although there is no maximum limit. You can also transfer an FD account from one post office to another. Post Office Time Deposit scheme assures a guaranteed return, nomination facility and premature withdrawal of deposits.