Earlier this scheme is known as Post Office Time Deposits. Now its name is National Saving Time Deposits. 1. This scheme offers four different types of time deposit accounts that have different maturities, according to the account holder’s choice. This scheme provides accounts in the form of time deposit accounts that are available for one, two, three, and five-year terms of maturity. A maximum of three people can operate these accounts. In this article, we will discuss the complete detail of the National Saving Time Deposits Scheme 2022 maturity, interest rates, tax benefits, withdrawals and more.
Who Can Open?
Persons Eligible to open National Saving Time Deposit: The following persons can open a National Saving Time Deposit account in the post office.
- Any individual can open an account in National Saving Time Deposits, whether singly or jointly with another person. The account can be opened on behalf of a minor or a person of unsound mind, Even more than one account can be opened without any limit.
- The deposit shall be made in multiples of Rs. 100.
- Provident and other funds, charitable trusts, institutions, co-operative societies and Government bodies are not permitted to open such accounts w.e.f. 13.5.2005.
Where to Apply?
- A National Saving Time Deposits account can be opened at any authorised post office doing savings bank work or
- All public sector banks and ICICI Bank, Axis Bank and HDFC Bank are authorised for this purpose.
Aadhaar Number
- An applicant should furnish his Aadhaar Number or proof of enrolment for Aadhaar, at the time of National Saving Time Deposits’s application.
- Existing deposit holders are also required to furnish their Aadhaar Number latest by 31.3.2018.
Maturity
The National Saving Time Deposits account can be opened for 1 year, 2 years, 3 years or 5 years.
National Saving Time Deposits Interest
Interest on time deposits is payable as under:
From 2012-23 to 30-09-2018
| Period | 2012-13 | 2013-14 | 2014-15 & 2015-16 | 1-4-2016 to 30-9-2016 | 1-10-2016 to 31-3-2017 | 1-4-2017 to 30-6-2017 | 1-7-2017 to 31-12-2017 | 1-1-2018 to 30-09-2018 |
| 1 Year | 8.2% | 8.2% | 8.4% | 7.1% | 7.0% | 6.9% | 6.8% | 6.6% |
| 2 Years | 8.3% | 8.2% | 8.4% | 7.2% | 7.1% | 7.0% | 6.9% | 6.7% |
| 3 Years | 8.4% | 8.3% | 8.4% | 7.4% | 7.3% | 7.2% | 7.1% | 6.9% |
| 5 Years | 8.5% | 8.4% | 8.5% | 7.9% | 7.8% | 7.7% | 7.6% | 7.4% |
From 1-1-2019
| Period | 1-10-18 to 31-12-18 | 1-1-19 to 30-6-19 | 1-7-19 to 11-12-19 | 12-12-19 to to 31-3-20 | w.e.f. 1-4-20 |
|---|---|---|---|---|---|
| 1 Year | 6.9% | 7% | 6.9% | 6.9% | 5.5% |
| 2 Years | 7.0% | 7% | 6.9% | 6.9% | 5.5% |
| 3 Years | 7.2% | 7% | 6.9% | 6.9% | 5.5% |
| 5 Years | 7.8% | 7.8% | 7.7% | 7.7% | 6.7% |
Interest shall be rounded off to the nearest multiple of the rupee.
Auto-Renewal of National Saving Time Deposits
A deposit account in a post office/bank working on the CBS platform shall be automatically renewed on maturity, for the same period it was opened initially at the rate of interest applicable on the date of such renewal.
Withdrawals
Not permitted before 6 months. In case of premature withdrawal, interest is payable as under:
| 1. If a deposit is withdrawn before 1 year | Simple interest at the post office savings-account rate shall be payable |
| 2. If 2 years, 3 years or 5 years deposit is withdrawn after 1 year | Interest is payable at 1% less than the rate for 1 year, 2 years or 3 years deposit respectively, for the completed years and months for which the Deposit has run. |
Income Tax Benefit
Amount invested in 5 years National Saving Time Deposits, along with PPF/LIC/NSC/ULIP, etc. upto a maximum of Rs. 1,50,000 is eligible for deduction u/s 80C. In case of deposit under joint holding, deduction u/s 80C shall be available to the first holder.
Check the Official Website About National Saving Time Deposit Account Scheme