InvestorQ : How are post office deposits (POTD) compared to bank deposits?
Akansha Shivdasani made post

How are post office deposits (POTD) compared to bank deposits?

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leah Diaz answered.
2 years ago
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As the name suggests, these POTDs can be opened at any departmental post office near to you. The minimum amount to be deposited in a POTD is Rs.200 and there is no upper limit. The rates of interest depend on the time to maturity. For example, a 1-year deposit attracts 7% interest while a 5-year deposit attracts 7.8% interest. Of course, these rates are subject to change from time to time and will be notified by the Indian Postal Department. POTD accounts can be opened either in individual names or joint names and can also be opened in the name of a minor. POTDs are typically automatically renewable for the same period as your original deposit. POTDs maturing after 5 years will also give an additional tax exemption under Section 80C of the Income Tax Act.

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