Que.1: Whether post maturity interest is paid on Time Deposit Accounts or not?
Ans: Yes. In case payment of a deposit becomes due and the same has not been made, interest shall be allowed on the amount at the post office savings account rate for a maximum period of two years only.
Que.2: Whether Time Deposit Account can be pledged?
Ans: Yes. An application should be made in the prescribed form by the transferors and transferee as per rules.
Que.3: Can the interest of Time Deposit Account be credited to the Post Office Savings Bank account standing in same post office?
Ans: Yes, on request in writing from the investor.
Que.4: Can a POTD account be prematurely closed ?
Ans : A POTD account can be closed prematurely after six months but before one year without interest. A POTD account for 2, 3, 5 years can be closed after one year and depositor will get 2% less than the rate of interest specified for a deposit of one year, two years, or three years as the case may be.