Friday, June 29, 2012

Savings And Investment Scheme Guide For Indian Poor And Middle Class:Post Office Term Deposit

What Scheme Mean?
Post Office Term Deposit(POTD) is similar to a bank fixed deposit,where you save money for a definite time period earning a guaranteed return through the tenure of the deposit.

Eligibility
As to be resident Of India preferably with a post office saving bank account

Entry Age
No age limit
Minor above age 10 can open an account on their own name directly.

Investment
Minimum:rs 200 and in multiples
Maximum:there is no upper limit

Interest
Interest rate of 7.7%to8.3% depending on the tenure of the deposit.
Interest payable annually but calculated quarterly.

Account Holding Type
Individual,Joint,Minor

Tenure
1,2,3 or 5 year

Tax Benefits
No tax benefits for less than 5 years.Tax deduction under 80c for 5 year deposit.
 
How to Join The Scheme/Account/Deposit/Policy?
Once you have selected the post office to open the POTD account,you can open a PODT for which you will need the documents:
  • A deposit opening form provided by the post office.
  • Address and identify proof such as copy of the passport,PAN card,License card or ration card.
  • Carry original identity proof for verification at the time of opening account.
  • Choose a nominee and get a witness signature to complete the formalities to start the deposit.
  
Objective And Risk
The main objective of the POTD is to provide an assured return on the deposit depending on the duration of the deposit.the low-risk associated with this deposit scheme makes it a popular small savings deposit.

Tips
Invest huge sum across varies deposit tenure and schemes.Its better deposit than other since it provide high guarantee for deposit as it directly controlled by Central government.

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