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National Savings Time Deposit Account
Introductory:
Time Deposit Accounts are short as well as long-term deposits with rate of interest compounded quarterly but paid annually.
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Rate of interest is notified by the government from time to time on quarterly basis and Current Rate of Interest Payable.
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A guardian may open an account on behalf of a minor or a person of unsound mind.
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An Account can be opened in multiples of ` 100/- without any maximum limit.
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An account can be closed any time after opening of the account. In this case simply interest at Post Office Saving Account rate shall be payable.
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Deposits in 5 year Time Deposit qualify for deduction u/s 80-C of Income Tax Act.
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Two, three and five year Time Deposit account can be closed prematurely with deduction in the rate of interest.
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