All About Post-Office Time Deposit Scheme

The interest rate on small savings schemes are higher than bank fixed deposits even though they have been reduced marginally recently.

- Sanjeev Puri

The post office time deposit (POTD) is an alternative to a bank fixed deposits (FD) for those looking for fixed income. It is safer than an FD because the principal invested, and interest earned are backed by sovereign guarantee. Whereas for bank FDs, under the deposit insurance and credit guarantee corporation (DICGC) rules, each depositor in a bank is insured up to a maximum of Rs 1 lakh for both principal and interest amount.

So, if you are planning investing in a post office time deposit, here is everything you need to know.