The fixed deposits facility is not only offered by the banks but the reliable Post Offices also offers this facility known as Post Office Time Deposit. An investor has a choice to choose from a maturity periods of 1, 2 ,3 and 5 years.
The maximum deposit rate offered is 7.50% across the maturity period of 5 years. This facility can be availed at a minimum deposit of Rs. 200 and if a person has a savings account with the same post office then the interest earned and the maturity amount can be transferred directly to the savings account.
Like the bank fixed deposits a person can go for premature withdrawal of the deposited amount but under these circumstances penalty of 2% will be levied on the customer and also the account cannot be closed within 6 months of opening it.
In case the person has not withdrawn the amount even after the completion of the maturity period then after the completion of the maturity period the amount in the fixed deposit account will continue earning interest rate applicable on the savings bank account up to a duration of another 2 years, apart from this nomination facility is also available with this account.
As the Indian Post has an extensive network even in the rural parts of the country, the people in the remote areas can be benefitted with this service.
1 comment:
Nice information about FD.
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