Time Deposit Account - Who can open?

1. Time Deposit Account -Who can open? • Single – • By any adult • Minor of 10 years of age or more • Guardian on behalf of minor. • Joint- • Two adults jointly can open Account. • Joint A • Joint B

2. Opening of TD account through SAS agents. The depositor can open TD account through SAS agents also. In such cases, on the top of the SB-3, a remark, ““Through authorized agent…………..”(Name and authority number). The agent shall note his authority number and number of his copy of the receipt at the top of the pay-in-slip. The application form duly signed by the depositor, pay-in-slip, agent’s receipt book containing duplicate copy or counter foil of the receipt and money will be presented by the agent at the post office for opening an account in the name of the depositor.

3. Commission to agents These agents will be paid commission at the rate of 0.5 % of deposits in TD Deposit Accounts. The particulars of post offices with which the agent is authorized to transact business are recorded in the Certificate of Authority of the agent. The agent can deposit money at these post offices and claim commission at source

4. Pledging of TD account as security (i) TD account can be pledged as security in the name of :- (a) the President of India or Governor of a State in his official capacity; (b) the Reserve Bank of India or a scheduled bank or a co-operative society including a cooperative bank; (c) a corporation or a Government company; or (d) a local authority. (ii) Pledging of account as security shall be permitted only in respect of the whole account and not for a part of it.

5. (iii) Pledging of an account opened on behalf of a minor shall be permitted only if his guardian certifies that the minor is alive and the transfer is for the benefit of the minor. (iv) When an account is pledged as security, the following endorsement below the entry of the deposit in the passbook in the page where the name and address of the depositor are written namely:- “Transferred as security to.....................” (v) On release of security, the account can be re-transferred on the written authority of the pledgee with the previous sanction of the Postmaster and when such re-transfer is made, the Post Office shall make the following endorsement in the passbook :- “Re-transferred as security to.....................”

6. Re-deposit in TD account from date of maturity Where a deposit in an account has become due for repayment, the depositor may re-deposit the amount in a new account to be opened, tendering his application for withdrawal of the original deposit in the prescribed form duly discharged. Where the redeposit is made during the period, the date of re-deposit shall be same as the date of maturity of the original deposit.

8. Post maturity Interest. Where repayment of the deposit has become due but has not been made, PMI allowed subject to the following conditions, namely:- (a) The interest shall be simple and shall be calculated at the rate applicable on savings accounts from time to time to. (b) The interest is allowed for the completed months from the date of maturity to date of payment. (c) The interest shall be paid to the depositor in lump sum at the time of repayment of amount due. (d) For the purpose of payment of interest, any part of the period which is less than one month shall be ignored.

9. Supply of ledger copy A depositor may, on payment of a fee of two rupees for every thirty entries or part thereof, obtain copy of his TD account as appearing in the ledger of the Post Office Savings Bank for any period for which such ledger is available.

10. Change of name of depositor A depositor can change his name i.e on adoption or otherwise or in case of female depositor on marriage after following the prescribed procedure.

11. Conversion of account from Joint to Single or vice versa. Subject to provisions of relevant rules and on a written application:- A single account in the name of an adult can be converted into a joint account in the name of the original depositor and another adult and a joint account in the name of two depositors can be converted into single account.

12. Conversion of Minor account after attaining majority In case of minor attaining majority, the minor account opened through guardian will be converted into individual account in the name of minor on submitting revised (SB-3) account opening form. The signature of Minor become major has to be attested by the guardian on revised SB-3 and after conversion, he can operate account with his signatures.

13. In case date of maturity/payment of interest falls on Sunday or Holiday In case date of maturity/payment of interest falls on Sunday or Holiday, the payment shall be deemed to be due on the business day immediately preceding the date of maturity/payment of annual interest.

14. Supply of Certificate of balance and annual interest. A certificate of balance in TD account and certificate of annual interest paid to the depositors may be issued to them on request by the post offices without levying any fee for the purpose of filing Income Tax Returns.

15. Deposit in 5 Years TD qualifies for Income Tax exemption. Deposits in 5 Years TD account qualifies for Income Tax exemption under Section 80-C if Income Tax Act.

16. Payment if becomes Rs.20,000/- or more should not be made by cash. It should either be by crossed cheque or credit into post office savings account standing or newly opened in the same post office.

17. Thank You