Post Office Time Deposit

What Is POTD Investment Scheme ? | POTD | Post Office Time Deposit | 1 Best Guaranteed Returns

by with No Comment Investment Scheme

Table of Contents

Blog Introduction

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on Post Office Time Deposit investment scheme.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on Post Office Time Deposit investment scheme. This will be a complete guide on Post Office Time Deposit investment scheme. Please read till end of the blog post to know the complete information about this Post Office Time Deposit investment scheme. Lets get started.

What is Post Office Time Deposit ?

POTD or Post office Time deposit is type of fixed deposit or term deposit account. In this scheme the interest is paid annually.

How Does Post Office Time Deposit Work?

  • You need to deposit a lump sum amount for specific tenure.
  • You will receive interest every year till the end of the tenure.
  • At the end of the tenure, you will get your deposit amount back.

Features of Post Office Time Deposit

  • This scheme is backed by the Government of India.
  • This is very safe investment option.
  • This scheme gives you a guaranteed returns.

Who Can Open The Account?

  • Only Indian residents can open the TD account.
  • TD account can be opened by.
  • An adult for himself.
  • An adult on behalf of a minor or a person of unsound mind of whom he is the guardian.
  • A minor who has reached the age of 10 years.
  • Joint account by up to 3 adults.
  • You can open more than one account in your name or jointly with another person.

How Do You Open The Account?

  • You can open the account by cash or cheque.
  • In case of cheque, the date of realisation of cheque in the account will be the date of account opening.
  • Any number of accounts can be opened in any Post Office.

Deposit Limits of Post Office Time Deposit

  • Minimum deposit amount is Rs. 1,000.
  • No maximum limit for deposit.
  • Deposit amount should be in multiples of Rs. 100.

Term of Post Office Time Deposit

You can choose one of the following 4 options.

  • 1 year.
  • 2 years.
  • 3 years.
  • 5 years

Interest rate % of Post Office Time Deposit.

The current annual interest rate for various tenure are given below.

  • 1 year 5.50%
  • 2 years 5.50%
  • 3 years 5.50%
  • 5 years 6.70%

Interest is paid on an yearly basis. Interest rate (on the day of account opening) will remain the same throughout the tenure of Time Deposit. It will not change even if there are changes to the interest rate thereafter. From 01-Apr-2016, the interest rates of this scheme have been announced on a quarterly basis.

Compounding Frequency of POTD

Quarterly compounding frequency is followed in this scheme. But, interest amount will be paid to you on a yearly basis.

Auto-Renewal Facility of POTD

  • In CBS (Core Banking Solution) Post Offices, when the TD account is matured, it will be automatically renewed for the period for which it was initially opened.
  • For example, 2 Years TD account will be automatically renewed for 2 Years. 1 year TD account will be automatically renewed for 1 year.
  • Interest rate for the auto renewed TD account will be the interest rate on the day of maturity.

Pre-Mature Closure of POTD

If the TD account is closed before 1 year, then the Savings Bank (SB) account interest rate will be paid for the duration for which TD account was kept.

Account Conversions of POTD

  • Single account can be converted into joint account and vice versa.
  • Minor, after attaining majority, has to apply for conversion of the account in his name.

Income Tax Benefits of POTD

The investment on 5 year Time Deposit qualifies for the benefit of section 80C of Income Tax Act, 1961.

Post Office Time Deposit vs Bank Fixed Deposits

ParticularsPost Office Time DepositBank Fixed Deposit
Rate Of Interest5.5% to 6.7%5.5% to 6.5% (Average)
Additional Interest for Senior citizensNo0.25% to 0.50%
Interest Payment FrequencyYearlyMonthly, Quarterly, Yearly
Lock-in Period1 to 5 Years7 days to 10 Years
Auto renewal Only after prior application or in case post offices with core banking solutionsYes
Loan Against The DepositNAAvailable from some banks
Premature WithdrawalAfter 6 MonthsAvailable anytime with certain financial institutions.
Applicability of Tax Deducted at source (TDS)No Yes
POTD VS Bank’s FD

POTD Returns Projection Table

Amount In INRMaturity after 1 yearMaturity after 2 YearsMaturity after 3 YearsMaturity after 5 Years
1000001,05,6141,11,2281,16,8431,34,351
3000003,16,8433,33,6863,50,5304,03,053
5000005,28,0725,56,144584,2176,71,755
8000008,44,9158,89,8319,34,74710,74,808
100000010,56,14411,12,28911,68,43413,43,511
120000012,67,37313,34,74714,02,12116,12,213
150000015,84,21716,68,43417,52,65120,15,266
20000001,12,28922,24,57923,36,86826,87,022
250000026,40.36127,80,72329,21,08533,58,777
300000031,68,43433,36,86835,05,30240,30,533
POTD Returns

FAQ About Post Office Time Deposit

What happens to my Post Office Time Deposit account if I have to move from one city to another due to work?

POTD Account can be transferred from one Post Office to another Post Office.

Is there any Nomination Facility Available for Post Office Time Deposit?

Nomination facility is available. You can nominate either at the time of account opening or after opening the account (but before maturity).

Can NRI and HUF Open This Post Office Time Deposit Account?

NRI (Non Resident Indians) and HUF (Hindu Undivided Family) can not open the account.

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Monthly Income Scheme

What is Monthly Income Scheme ? | MIS | Post Office Monthly Income Scheme | POMIS | 1 Best Guaranteed Monthly Returns

by with No Comment Investment Scheme

Blog Introduction

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on Monthly Income Scheme.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on Monthly Income Scheme. This will be a complete guide on Monthly Income Scheme. Please read till end of the blog post to know the complete information about this Monthly Income Scheme. Lets get started.

Table of Contents

What is Monthly Income Scheme ?

Monthly income scheme (MIS) is a scheme which provides a regular monthly income. This is suitable for those who expect to receive regular and guaranteed income on a monthly basis. We also call this scheme as POMIS ( Post Office Monthly Income Scheme ).

Features Of Monthly Income Scheme (MIS) ?

  • This scheme is backed by the Government of India.
  • This scheme is a safe investment option.
  • This scheme gives you the guaranteed returns.
  • Through this scheme you can earn a regular monthly income.

How Does Monthly Income Scheme (MIS) Work?

You need to deposit a lump sum amount. Every month you will receive interest till the end of the tenure. At the end of the tenure, you will get your deposit amount back.

Eligibility : Who Can Open The MIS Account?

  • Only Indian residents can open the account.
  • Account can be opened by an individual adult.
  • Joint account can be opened by two or three adults. All joint account holders have equal share in each joint account.
  • A Guardian or Parent can open an account in the name of minor.
  • You can open an account on the behalf of a minor who is aged 10 years and above. They can avail the fund when they become 18 years old.
  • A minor, after attaining majority, has to apply for conversion of the account in his/her name.

Deposit Limits in MIS.

  • Minimum deposit amount is Rs. 1,000.
  • For a single account, maximum deposit limit is Rs. 4.5 lakhs.
  • For a joint account, maximum deposit limit is Rs. 9 lakhs.
  • Deposit amount should be in multiples of Rs. 1,000.
  • An individual can invest a maximum of Rs. 4.5 lakhs in MIS (including his/her share in joint accounts).

MIS Term/Maturity Period

MIS Maturity period is 5 years .

MIS Interest Rate (%).

  • Current annual interest rate is 6.60%.
  • Interest amount is paid on a monthly basis.
  • Interest rate (on the day of account opening) will remain the same throughout the tenure of MIS. It will not change even if there are changes to the interest rate thereafter.
  • From 01-Apr-2016, the interest rate of this scheme has been announced on a quarterly basis. previously that it used to be on a yearly basis earlier.

MIS Compounding Frequency

Compound interest is not applicable for this scheme. Simple interest calculation is followed in this scheme.

MIS Interest Credit Method

  • You can receive monthly interest through auto-credit facility into savings account present at the same post office.
  • In case of MIS accounts present at CBS (Core Banking Solution) Post offices, monthly interest can be credited into savings account present at any CBS Post offices.

Pre-Mature Closure of MIS account

  1. Account can be closed pre-maturely after one year of opening the account.
  2. If you close the account before 3 years, 2% of deposit amount will be deducted and you will get the remaining amount.
  3. If you close the account after 3 years, 1% of deposit amount will be deducted and you will get the remaining amount.

For an Example.

  • If you close the account having a deposit of Rs. 1 lakh before 3 years, then Rs. 2,000 (2% of Rs. 1 lakh) will be deducted and you will receive the remaining amount Rs. 98,000 (Rs. 1 Lakh minus Rs. 2,000).
  • If you close the account having a deposit of Rs. 1 lakh after 3 years, then Rs. 1,000 (1% of Rs. 1 lakh) will be deducted and you will receive the remaining amount Rs. 99,000 (Rs. 1 Lakh minus Rs. 1,000).

Income Tax Benefits of Monthly Income Scheme

  • No income tax benefits.
  • No tax deduction for the deposit amount under Section 80C of Income Tax Act.
  • No TDS (Tax Deducted at Source) under this scheme by the Post Office.
  • Interest received under this scheme is taxable. You need to declare the interest income under “Income from Other Sources” during tax returns and pay the income tax as per your income tax slab.

MIS Account Conversions

  • Single account can be converted into Joint account and Vice Versa.
  • Minor after attaining majority has to apply for conversion of the account in his name.

MIS Account Transfer

MIS Account can be transferred from one Post Office to another.

MIS Nomination Facility

Nomination facility is available. You can nominate either at the time of account opening or after opening the account (but before maturity).

MIS Monthly Earning Projection Table

Deposited Amount In INR Interest Rate (%) TenureMonthly Income in INR
1000006.60%5500
2000006.60%51100
3000006.60%51650
4500006.60%52475
Single Account
Deposited Amount In INR Interest Rate (%) TenureMonthly Income in INR
5000006.60%52750
6000006.60%53300
7000006.60%53850
8000006.60%54400
9000006.60%54950
Joint Account

FAQ About Monthly Income Scheme (MIS)

Can NRI and HUF Open This MIS Account?

No. NRI (Non Resident Indians) and HUF (Hindu Undivided Family) can NOT open the account.

Is this Monthly Income Scheme suitable for senior citizens?

Yes. This is a favourable scheme for senior citizens as they can deposit their life savings in the account and earn interest for their monthly expenses which is risk free and guaranteed income.

What happens to my MIS account if I have to move from one city to another due to work?

In the event of shifting from one city to another, you can easily transfer your MIS account to the Post Office in the current city at free of cost.

My Recent Post in this blog.

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Kisan Vikas Patra

What Is Kisan Vikas Patra Investment Scheme? | Double Return Investment Plan | KVP | 1 Best Guaranteed Returns

by with No Comment Investment Scheme

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on Kisan Vikas Patra.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on Kisan Vikas Patra. This will be a complete guide on Kisan Vikas Patra. Please read till end of the blog post to know the complete information about this Kisan Vikas Patra. Lets get started.

Table of Contents

What is Kisan Vikas Patra (KVP) ?

Kisan vikas patra is a savings scheme certificate that you can purchase from a Bank or Post Office. In this scheme, the deposit amount gets doubled in 10 years and 4 months. So if you want to double your money without any risk then this is the best investment scheme for you. Please read till the end to know more about the Kisan vikas Patra saving scheme.

What are the features of the Kisan Vikas Patra?

  • KVP savings scheme is backed by Government of India.
  • KVP savings scheme is Safe investment option.
  • KVP savings scheme gives you the Guaranteed returns
  • KVP certificate can be pledged as a security to get loan from Banks

How Does Kisan Vikas Patra Work?

  • You need to deposit a lump sum amount and purchase KVP certificate from bank or post office.
  • Your deposited amount will get doubled in 10 years and 4 months.
  • At the end of 10 years and 4 months, submit the certificate to the bank or post office from where you purchased the certificate and get the maturity amount (doubled amount).

Who Can Open The KVP Account?

  • Only Indian residents can purchase KVP certificates.
  • KVP certificate can be purchased by an adult for himself.
  • An adult on behalf of a minor or a person of unsound mind of whom he is the guardian.
  • Joint account by up to 3 adults.
  • You can purchase any number of KVP certificates.

Where Do You Open The Kisan Vikas Patra Account?

You can buy KVP certificate from the following.

  • Post Office.
  • Nationalised Banks.
  • Few commercialised Banks.

How Do You Open The Kisan Vikas Patra Account?

  • KVP certificate can be purchased by cash or cheque.
  • In case of cheque, the date of realisation of cheque in the account will be the date of account opening.
  • You need not have a Savings Bank (SB) account to buy this certificate.
  • But, you need to have a Savings Bank (SB) Account to receive the maturity amount.

What is the deposit limit for Kisan Vikas Patra savings scheme?

  • Minimum Deposit amount is Rs. 1,000.
  • No maximum limit on the deposit amount. That means you can invest as much as you can.
  • Deposit amount should be in multiples of Rs. 100. For example, Rs. 1,100, Rs. 1,200, Rs. 1,300, Rs. 1,400 and so on.

Income Tax Benefits of Kisan Vikas Patra savings scheme

  • No income tax benefits.
  • Deposit amount is not eligible for tax deduction under Section 80C of Income Tax Act.
  • Interest received upon maturity is taxable. You need to declare the interest income under “Income from Other Sources” during tax returns and pay the income tax as per your income tax slab.
  • No TDS (Tax Deducted from Source) during maturity from Post Office or Bank in this Scheme.

Maturity Period of Kisan Vikas Patra Savings scheme

Currently, the maturity period is 10 years and 4 months. The maturity period is not fixed and it changes from time to time based on the announcement from the Government.

KVP Interest Rate %

Current annual interest rate is 6.90%. Interest rate (on the day of account opening) will remain the same throughout the tenure of KVP. It will not change even if there are changes to the interest rate thereafter. From 01-Apr-2016 onwards, the interest rate of this scheme has been announced on a quarterly basis. Note that this used to be on a yearly basis earlier.

Compounding Frequency of KVP savings scheme

This scheme follows yearly compounding frequency from 01-Apr-2016 onwards. Note that it used to be on half-yearly compounding frequency earlier.

Process of KVP In Online Or Passbook Mode

  • Before 01-July-2016, when you invest in KVP, you used to get physical certificate.
  • From 01-July-2016 onwards, the Government has decided to discontinue the physical certificates. Instead, you will be given the option to keep KVP in the following formats.
  1. e-mode (Online Mode).
  2. Passbook mode.

The details are given below.

  1. e-mode (Online): After purchasing KVP, you can view the details of your purchase through Online. For this facility, you have to have a Savings Bank (SB) Account and Internet Banking facility. Note that you can only view the certificates that you purchased. It means that you can’t purchase certificates through online Banking. You still need to go to Bank or Post Office for the purchase or investment.
  2. Passbook Mode: This is similar to the passbook of the Savings Bank (SB) account. After purchasing KVP, the entries will be made (either printed or manually) in the passbook.

Your Options: You can choose either Online or Passbook mode or both. The choice is yours. If you opt for Passbook initially and later on you want to switch to Online mode, it is possible. In that case, you have to surrender your Passbook.

Pre-Mature Closure process of KVP Savings scheme

  • KVP certificate can be closed pre-maturely after two and a half years (2.5 years or 30 months) from the date of issue.
  • Earlier, you had to surrender the physical certificate to close your KVP pre-maturely.
  • For the KVP purchased after 01-July-2016, you have to surrender the KVP Passbook to close your KVP pre-maturely.
  • The concerned Bank or Post Office will collect the Passbook and make an entry for delivering the final amount to you.
  • If you had opted for Online mode for viewing KVP purchases, your online access will be removed.

Account Transfer of KVP Savings Scheme

  • KVP certificate can be transferred from one person to another person. It can be done as many times as possible.
  • KVP certificate can be transferred from Post Office to Bank and vice versa.
  • Earlier, the physical certificate of the old owner used to be given to the new owner during the transfer process.
  • But, to transfer the KVP purchased after 01-July-2016, the new owner will receive the mode that the old owner had opted for.
  • For example, if the old owner had online access, then his access will be removed and new owner will get online access to the KVP.
  • If the old owner had Passbook mode, then old owner should submit the Passbook. The concerned Bank or Post Office will strike out the entries belonged to the old owner and issue the same Passbook to the new owner in his name.

FAQ about Kisan Vikas Patra

What will happen in case Loss Of Kisan Vikas Patra Certificate?

If you lose or lost the certificates that you purchased before 01-July-2016, then you can apply for the duplicate certificate. But, instead of a certificate, you will get Passbook and it will have the certificate number of the old lost certificate. If you lose the KVP Passbook that you purchased after 01-July-2016, then you can apply for and get duplicate Passbook by paying required fees.

Is there any Loan Facility available from Kisan Vikas Patra Saving Scheme?

You can use KVP certificate as a collateral security to get Loan from the Banks. Earlier, you had to submit or pledge the certificate in the Bank to get the Loan. But, for the KVP purchased after 01-July-2016, you can submit in Passbook mode only. The online mode will not help in this case.

Is there any Nomination Facility available in Kisan Vikas Patra Saving Scheme?

Yes Nomination facility is available. You can nominate either at the time of buying the certificate or after buying the certificate (but before maturity).

Can NRIs invest in the KVP scheme?

No, KVP scheme is open only for resident individuals.

Where can one encash a Kisan Vikas Patra (KVP)?

A kisan Vikas Patra can be encashed by the certificate holder at the bank or post office where the certificate was issued.

How will the maturity amount be paid?

On maturity of the scheme, the payable amount shall be credit directly to the bank/post office savings account of the certificate holder. Therefore, it is important that the certificate holder have a savings account when they are looking to encash their certificate.

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Senior citizens savings scheme

What is Senior Citizens Savings Scheme | Best Senior Citizen Investment scheme | 1 Best Guaranteed Returns

by with No Comment Retirement

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on Senior Citizens Savings Scheme.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on Senior Citizens Savings Scheme. This will be a complete guide on Senior Citizens Savings Scheme. Please read till end of the blog post to know the complete information about this Senior Citizens Savings Scheme. Lets get started.

Table of Contents

What is Senior Citizens Savings Scheme (SCSS)?

This scheme is exclusively for Senior Citizens (aged 60 years or more). This scheme provides regular income on a quarterly basis. If you are a retired person and having some lumpsum amount with you then this is the best and risk free saving scheme for you to earn a regular quarterly income for yourself.

How does Senior Citizens Savings Schemes works ?

  • You need to deposit a lump sum amount into your SCSS account.
  • Every Quarter means every 3 months you will start receiving the interest till the end of your tenure.
  • You will get back your deposited amount back at the end of your tenure.

Features of Senior Citizens Saving Scheme ?

  • This Scheme is exclusively for Senior Citizens of India only.
  • This scheme is Backed by the Government of India.
  • This scheme provides Guaranteed returns.
  • This scheme is a Safe investment option for eery senior citizens.
  • This scheme gives you a regular quarterly income.
  • You will have a peace of mind during your retirement life.
  • You will be also getting lots of income tax benefits.

Where do you open the SCSS account ?

Senior Citizen saving scheme account can be opened in

  • Post Office
  • Nationalized banks
  • Also in private sectors bank

Who can open the SCSS account ?

  • Only Indian residents can open the account. An individual of the age of 60 years or more can open the account.
  • An individual of the age of 55 years or more but less than 60 years and who has retired on superannuation or under VRS can also open account.
  • The retired personnel of Defence Services (excluding civilian Defence employees) of the age of 50 years or more can open the account.
  • Joint account can be opened with spouse only. First depositor in joint account is the investor.
  • A depositor can open more than one account either individually or jointly with spouse.
  • Any number of accounts can be opened. But, total investment in all the accounts should not exceed the maximum investment limit of Rs. 15 Lakhs.

What is the deposit limits of senior citizens savings scheme account?

  • Minimum deposit amount is Rs. 1,000.
  • Deposit amount should be in multiples of Rs. 1,000.
  • Maximum deposit limit is Rs. 15 Lakhs.

What is the maturity period of senior citizens savings scheme?

  • Maturity Period for this scheme is 5 Years.

Extension Period of SCSS

  • After maturity, the account can be extended for further 3 years.
  • Account can be extended within one year of maturity by giving application.
  • During the extension period, account can be closed at any time after one year of extension without any deduction.

What is the interest rate for senior citizens savings scheme ?

  • Current annual interest rate is 7.40%.
  • Interest amount is paid on a quarterly basis. That means interest is paid at the end of Calendar quarter (31st March, 30th June, 30th Sept and 31st December).
  • Interest rate (on the day of account opening) will remain the same throughout the tenure of SCSS. It will not change even if there are changes to the interest rate thereafter.

How will you receive the interest ?

You can receive quarterly interest in one of the following ways.

  • Quarterly interest can be credited into Savings Bank (SB) Account present in the same deposit office.
  • Quarterly interest of SCSS accounts present at CBS (Core Banking Solution) Post Offices can be credited in any Savings Bank (SB) Account present at any other CBS Post Offices.
  • Money order

Process for Premature Closure of SCSS account

  • If you close the account pre-maturely after 1 year, then 1.5% of the deposit amount will be deducted and you will receive the remaining amount.
  • If you close the account pre-maturely after 2 years, then 1% of the deposit amount will be deducted and you will receive the remaining amount.

Nomination Facility of Senior Citizens Savings scheme account

  • You can nominate either at the time of account opening or after opening the account but before maturity.

Income Tax Benefits of SCSS account

  • Investment made in SCSS are also eligible for tax deductions in the following manner.
  • The principal amount deposited in SCSS is eligible for a tax deduction of up to Rs. 1.5 Lakh per annum under section 80C of the Income Tax Act, 1961.
  • Interest on SCSS is taxable as per the tax slab applicable to the person. In case the interest amount earned is more than Rs. 50,000 for a fiscal year, Tax Deducted at Source (TDS) is applicable to the interest earned. This limit for TDS deduction on SCSS investments is applicable from AY 2020-21 onwards.
  • ICICI Bank
  • Bank of Baroda
  • State Bank of India
  • Canara Bank
  • Punjab National Bank
  • Union Bank of India
  • Vijaya Bank
  • UCO Bank
  • Bank of India
  • IDBI Bank

Interest Earnings Projection Table

Deposited AmountInterest Rates(%)Deposited Period in Years Quarterly interest pay out (INR)
5,00,0007.40%59,250
6,00,0007.40%511,100
7,00,0007.40%512,950
8,00,0007.40%514,800
9,00,0007.40%516,650
10,00,0007.40%518,500
11,00,0007.40%520,350
12,00,0007.40%522,200
13,00,0007.40%524,050
14,00,0007.40%525,900
15,00,0007.40%527,750
Interest Earnings Projection Table

FAQ About Senior Citizens Savings Scheme

What is the Compounding Frequency of Senior citizen saving scheme?

Compound interest is not applicable in this scheme. Simple interest calculation is followed in this scheme.

Is there any Account Transfer faciality available in Senior citizen saving scheme?

SCSS account can be transferred from one deposit office to another deposit office.

What is the eligibility criteria of joint senior citizen saving account?

The age of first depositor is supposed to be above 60 years. However, there is no age limit for the second applicant. The joint account can be opened only with the spouse. However, the entire amount in a joint account will be attributable only to the first account holder.

What is the maximum age of senior citizen saving account opening?

Any individual, above the age of 60, can open a Senior citizen savings account.

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TDR

What is TDR Investment Scheme | Fixed Deposit | Term Deposit Receipt | 1 Best Guaranteed monthly returns

by with No Comment Investment Scheme

Hello Friends, Welcome to my Blog Investinfy.com the best financial blogs where you will be able to read about the end to end information on many investment schemes and financial topics. In this Blog post we will be focusing on TDR.

Generally when we want to invest money on any investment scheme , we always asks our friends and relatives that where we can invest ? and they suggests the investment schemes which they like most. Then we invest as per their suggestions, that is good as we consider them as our well wisher , But here I want to mention one thing, if we know end to end information of each investment schemes at least it will help us to understand if that investment scheme is good for us or not.

Hence it is better to have a complete idea about each investment scheme where we invest. Therefor this blog will help you to know end to end information of many Indian investment schemes available right Infront of you.

In this blog post I will be explaining my analysis on TDR Investment scheme. This will be a complete guide on TDR investment scheme. Please read till end of the blog post to know the complete information about this TDR investment scheme. Lets get started.

Table of Contents

What is TDR?

TDR stands for Term Deposit Receipt. TDR is a type of fixed deposit where we can opt to receive monthly or quarterly interest.

This scheme is also known as Interest Pay-out Scheme and this scheme is best suitable for the people who wants to receive a regular income.

How Does TDR work?

Let us understand how does this TDR (Term deposit receipt) work easy step by step.

  • Step1 : You Need to deposit a lump sum amount for specific period.
  • Step2 : You need to specify whether you want to receive the interest Monthly or Quarterly .
  • Step3 : You will receive interest as per your chosen interest frequency till the end of your tenure.
  • Step4 : At the end of your tenure you will get your deposit amount back.

Features of TDR

  1. Safe Investment Option
  2. Guaranteed returns
  3. Regular monthly or quarterly income
  4. Senior citizens get extra interest rate compared to other customers.

Who can open the TDR Account?

  • Any resident individuals can open the individual account.
  • Joint account can be created by 2 or more individuals.

How Do you Open the TDR Account ?

  • First you need to go your preferable bank and fill the required form requesting to open your TDR account.
  • Account can be opened by cash or cheque.
  • Date of realisation of cheque will be the date of account opening. That means if you are submitting the cheque to open the TDR account, once the cheque is cleared and money is deposited to your bank account from that day the account opening date is counted and you will start earning the interest from the day.
  • If you have your saving accounts then you can create TDR from the saving account funds.

TDR Deposit Limits

  1. Minimum Deposit amount is Rs. 1000.
  2. No Maximum limit of deposit amount that means there is no maximum limit defined hence you can deposit any amount above 1000 rupees and earn your monthly or quarterly income best on that.

TDR Terms

  1. Minimum Term – 7 days
  2. Maximum Term – 10 Years
  3. few banks offers more than 10 years terms .

TDR Interest Rate

Interest rate on the day of your Term deposit receipt account opening will remain same throughout the tenure of TDR. It will not change even if there are changes to the interest rate thereafter.

The interest rate % varies from one bank to another bank. Please find the below current interest rates of few bank’s Term deposit receipt FD .

Bank NameInterest Rate for general citizen per yearInterest rate for Senior Citizen per year
State Bank Of India2.90% to 5.50%3.40% to 6.20%
HDFC Bank2.50% to 5.60%3.00% to 6.35%
Axis Bank2.50% to 5.75%2.50% to 6.50%
Canara Bank2.90% to 5.50%2.90% to 6.00%
Punjab National Bank 2.90% to 5.25%3.50% to 5.75%
Bank Wise TDR Interest Rate %

The interest % varies depending upon the period of deposit. Please find the below table of SBI Term deposit receipt FD interest rate as per the period of deposit. Longer the period higher the interest rate. For more information about the FD interest rate read here

PeriodInterest rate for general publicInterest rate for Senior citizen
7 days to 45 days2.90%3.40%
46 days to 179 days3.90%4.40%
180 days to 210 days4.40%4.90%
211 days to less than 1 year4.40%4.90%
1 year to less than 2 years5.00%5.50%
2 years to less than 3 years5.10%5.60%
3 years to less than 5 years5.30%5.80%
5 years and up to 10 years5.40%6.20%
SBI TDR FD Interest rate As per the Period

TDR Compounding Frequency

Compound interest is not applicable for this scheme. Simple interest calculation is followed in this scheme.

TDR Interest Credit Method

  • You can receive interest either Monthly or Quarterly as per your requirement .

TDR Auto-Renewal Facility

  • If you do not provide any specific instructions to your bank while opening the Term deposit receipt account or before maturity. The Term deposit receipt account is automatically renewed upon maturity.
  • It will be renewed for the same period for which it was opened initially.
  • The interest rate for the renewed period will be the interest rate on the day of maturity.

Income Tax Benefits

Effective 01-April-2020, the income tax benefits will depend upon whether you choose old tax system or new tax system.

Old Tax System

  • Deposit amount (upto Rs. 1.5 lakhs) under 5 years tax saving FD will qualify for tax deduction under section 80C of income tax Act.
  • No Tax Deduction benefits for deposit other than 5 years tax saving FD.
  • There is a TDS (Tax deducted at source) from bank if the interest received more than Rs. 40000 in a financial year. This is for ordinary citizens. The new TDS limit of Rs. 40000 id from 01-April-2019 onwards. Earlier the limit was Rs. 10000 .
  • Bank will provide TDS certificate for the tax deducted.
  • Interest received is taxable. you need to declare the interest income under ” income from other sources” during your tax returns filing and pay the income tax as per your income tax slab.

New Tax System

  • No income tax benefits. The deposit amount won’t get any deduction benefits under section 80C of any income tax Act.
  • There is a TDS (Tax deducted at source) from bank if the interest received more than Rs. 40000 in a financial year. This is for ordinary citizens. The new TDS limit of Rs. 40000 id from 01-April-2019 onwards. Earlier the limit was Rs. 10000.
  • For Senior Citizens, TDS limit is Rs. 50000 from 1st-April-2018 onwords. Earlier the limit was Rs.10000.
  • Bank will provide TDS certificate for the tax deducted.
  • Interest received is taxable. you need to declare the interest income under “ income from other sources” during your tax returns filing and pay the income tax as per your income tax slab.

Pre-Mature Closure of TDR

  • Premature Closure of term deposit receipt is possible . But there will be a penalty for the pre-mature closure.
  • The penalty amount is generally 1% of the interest earned.
  • Interest will be payable for the duration for which the TDR was kept minus the penalty amount.
  • The penalty amount may change from time to time.

Loan Facility from TDR account

Loan facility is available upto 90% of the deposit amount.

Account Conversions

Yes account conversions is possible from TDR (regular interest pay-out) account STDR (cumulative interest pay-out) and vice versa.

Nomination Facility

Nomination facility is available for TDR Investment scheme. You can either nominate at the time of account opening or after opening the account (but before maturity).

TDR Earning Projection Table

let us take an example and see how much we can earn monthly interest by investing 10 lakhs rupees with TDR investment scheme with current interest of above SBI interest rate table.

Period in yearsDeposited Amount in INRGeneral public Monthly interest Amount in INRSenior citizen Monthly interest Amount in INR
4 years100000043984810
6 years100000044805140
Period in yearsDeposited Amount in INRGeneral public Quarterly interest Amount in INRSenior citizen Quarterly interest Amount in INR
4 years10000001325014500
6 years10000001350015500
TDR Earning Projection Table

Once the period is over you will get back your deposited amount. Now you can plan as per your needs.

FAQ about TDR Investment Scheme

Is it possible to transfer my TDR account from one branch to another branch?

Yes TDR accounts can be transferred from one branch to another branch without any extra cost.

I am a NRI can I open TDR account ?

NRI (Non resident Indians ) can not open residential fixed deposits. But they can open NRI fixed deposits accounts and it is a different scheme completely.

What will be the penalty if I close the TDR account before maturity period?

The penalty amount is generally 1% of the interest earned.

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