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Opening of TD Account

• Types of account– Single adult

– Two adults jointly

–Minor- 10 years

– Guardian on behalf of minor

• Mode of deposit- Cash or cheque• Subsequent deposit & withdrawal – not

allowed.

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Rate of Interest For Time Deposit Account-w.e.f. 01-12-2011

• Limit:–Minimum- Rs.200/- and in multiple of Rs.200/-.

–Maximum – no limit.

• Interest rate– 1 year Time Deposit Account 7.7 % upto 31.03.12– 2 year Time Deposit Account 7.8 % upto 31.03.12– 3 year Time Deposit Account 8.0 % upto 31.03.12– 5 year Time Deposit Account 8.3 % upto 31.03.12

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Interest rate w.e.f 01.04.2012

1 year Time Deposit Account 8.2 % 2 year Time Deposit Account 8.3 % 3 year Time Deposit Account 8.4 % 5 year Time Deposit Account 8.5 %

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Payment of Interest

• Interest will be payable after completion of one year from the date of opening of the account.

• Depositor should submit filled in SB-7 form and along with PB.

• Issue SB-28 receipt • BPM should send the PB and SB-7 to AO

Withdrawal of SB/RD procedure is to be followed

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• Exercise 3.1

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Procedure for opening of Time Deposit Account

• SB-3 and Pay in slip(SB-103) to be filled in by the depositor

• The following documents are compulsory– 3 copies of recent photograph

– Identity Proof

– Address Proof

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Opening of New Time Deposit Account(Procedure)

• Procedure same as opening of new Savings Bank Account except no introduction is necessary.

• If opened by cheque, account will be opened on realization of cheque.

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9

Opening of TD account through SAS agent

• It should be authorized by the competent authority to accept the deposit

• If it is authorised,BPM will issue SB 26 receipt to the agent

• Pass book will be delivered to the agent on receipt from the AO

• Agent will be paid 0.5% commission

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• Exercise 3.2

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Time Deposit Account--- PMC/PMI, etc.

• Interest is compounded quarterly and payable annually.

• Premature closure allowed – After six months within 1 year - Simple interest at

SB rate – After 1 year -Reduced rate of interest

• Post - maturity interest at SB rate of interest for 2 years.

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Premature closure of TD A/c• After six months within one year –Simple

interest at SB rate • Interest shall be paid for completed years and

month• Shall carry interest 1% less than the rate

specified for completed years TD from the date of deposit to the date of closure– Completed Years as per table– Completed Months as per formula

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Final closure on maturity

• All Head and Sub Postmasters can close the account independently

• Procedure is same as in the case of Savings Account

• Interest due, if any, determined• Post Maturity Interest if any to be calculated

on amount due.

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Procedure for PMC/Closure on Maturity

• Obtain SB-7/7(a) duly filled on application portion

• Verify Signature & balance• Issue SB-28 receipt• Forward PB, SB-7/7(a) to AO• On receipt of PB & passed SB-7, obtain

acquittance of depositor and effect payment• A remark “ A/c closed” on all pages in PB,

TD journal, SS book15

Preparation of TD Journal• Entry of opening of account/transaction made

in existing account should be made in the BO TD Journal.

• The column of account number should be left blank in case of new a/cs.

• The new account number is to be noted only after the same is allotted by the AO.

• PR number should be noted in the Remarks column in RED INK for new a/c.

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Preparation of TD Journal

• Note the BAT• Note DLT• Initial the appropriate column

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Incentive/Commission for GDS

• For the deposits made under SB/TD schemes BPMs can earn Commission/Incentive

• For SB, Commission may be claimed for each financial year

• Rate of commission is 2% on net deposit• Procedure to calculate net deposit is shown in

next slide

Calculation of net deposit

• Deposits made from April to February should be taken

• Deposits made in March not to be counted• Withdrawals made from 1st April to 31st

March should be deducted• Withdrawals made from A.O. should be

deducted

Calculation of net deposit

• Deposits made at A.O. should not be taken into account

• Amount of interest should not be treated as deposit

• 2% of the net deposit arrived as said above may be claimed as commission

• Claim should be preferred in the month of April every year

Payment of SB Commission

• The Commission bill may be forwarded to A.O.

• A.O. will verify and sanction the bill• Commission amount can be charged at BO

with separate head in BODA as “Payment of Commission to BPM”.

Rate of Commission - TD

Sl Type of A/c Rate of Commission

01 1 year TD ½%

02 2 & 3 years TD 1%

03 5 years TD 2%

Procedure to claim TD commission

• Claim may be preferred once in a month• Bill should be submitted to A.O. for the

accounts opened during the month on 1st of next month

• Accounts opened through agents are not eligible to claim commission

• No commission for TD re-deposits• Forward commission bill to A.O. duly invoiced

in BODA

Payment of TD Commission

• A.O. will verify and sanction the bill• Commission amount can be charged at BO with separate head in BODA as “Payment of Commission to BPM”.• The charged bill should be sent back to A.O.

Payment of TD Commission

• Need not wait up to the end of financial year to claim commission on TD deposits

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