1. TD Account

2. Opening of TD Account Types of account Mode of deposit- Cash or cheque
Single adult
Two adults jointly
Minor- 10 years
Guardian on behalf of minor
Mode of deposit- Cash or cheque
Subsequent deposit & withdrawal – not allowed.

3. 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
2 year Time Deposit Account 7.8 % upto
3 year Time Deposit Account 8.0 % upto
5 year Time Deposit Account 8.3 % upto

4. Interest rate w.e.f 01.04.2012 1 year Time Deposit Account 8.2 %

5. 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

6. Exercise 3.1

7. 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

8. 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.

10. 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

11. Exercise 3.2

12. 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.

13. 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

14. 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.

15. 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 book

16. 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.

17. Preparation of TD Journal
Note the BAT
Note DLT
Initial the appropriate column

18. 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

19. 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

20. 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

21. 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”.

22. Rate of Commission - TD Sl Type of A/c Rate of Commission 01 1 year TD½% 02
2 & 3 years TD 1% 03
5 years TD 2%

23. 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

24. 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.

25. Payment of TD Commission
Need not wait up to the end of financial year to claim commission on TD deposits

26. Thank you