InvestorQ : What is the new Time Deposit Scheme that has been introduced by the Modi Government?
Gayatri Surendran made post

What is the new Time Deposit Scheme that has been introduced by the Modi Government?

Answer
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Abigail Ghoshal answered.
10 months ago


Recently a new scheme has been notified by the government called National Savings Time Deposit Scheme, 2019. This scheme provides for four types of time deposit (or fixed deposit) accounts -  One-year account, two-year account, three-year account, and five-year account.

The TD account can be opened by a single adult, three adults in joint names, a minor below 10 years of age or a guardian on behalf of a minor or a person on the unsound mind. An individual can have more than one TD account in his name or jointly with another.

The minimum deposit amount required is Rs 1000, however, there is no maximum deposit limit.
The current interest rates (per annum) offered on the four categories of time deposit accounts are: 
1 year - 6.9%
2 year - 6.9%
3 year - 6.9%
5 year - 7.7%

Interest income can be credited to the savings bank account of the account holder. However, if the interest is not withdrawn by the holder during the year, it will not fetch any additional income for the account holder.