National Saving Time Deposits – Everything You Wanted to Know

Eerlier this scheme is known as Post Office Time Deposits. Now its name is National Saving Time Deposits. 1.

Who Can Open?

  • Any individual can open an account in National Saving Time Deposits, whether singly or jointly with another person. 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] 2.
  • 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 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:

Period2012-132013-142014-15 & 2015-161-4-2016 to 30-9-20161-10-2016 to 31-3-20171-4-2017 to 30-6-2017 1-7-2017 to 31-12-20171-1-2018 to 31-3-2018
1 Year8.2%8.2%8.4%7.1%7.0%6.9%6.8%6.6%
2 Years8.3%8.2%8.4%7.2%7.1%7.0%6.9%6.7%
3 Years8.4%8.3%8.4%7.4%7.3%7.2%7.1%6.9%
5 Years8.5%8.4%8.5%7.9%7.8%7.7%7.6%7.4%

Interest shall be rounded  off to the nearest multiple  of rupee.

Auto Renewal of National Saving Time Deposits

A deposit account in a post office/bank working on 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 If deposit is withdrawn before 1 yearSimple interest at post office savings-account rate shall be payable
2. If 2 years, 3 years or 5 years deposit is withdrawn after 1 yearInterest is payable at 1% less than the rate for 1 year, 2 years or 3 years deposit respectively, for the completed years and months for which the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, alongwith 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.

  1. Vide Notification No. S.O.2127(E) Dt.13-12-2017
  2. Reduced from Rs.200 vide Notification No.GSR 1236(E), dt.3-10-2017

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