Q. Are companies, trusts and local associations allowed to invest in post office time deposits?
Yes, they are. Apart from these, banking companies, associations, institutions and registered societies are also allowed to invest in post office time deposits.

Q. I maintain a savings and a time deposit account in the same post office; is there a provision for getting the annual interest credited automatically to my savings account?
Yes, automatic credit of annual interest to the savings account is allowed on the request of the depositor, provided the savings account is also in the same post office. The same facility is also available for crediting the maturity amount of a time deposit.
In case you hold a savings account, a five-year recurring deposit account and a five-year time deposit in the same post office, it is possible to get the annual interest earned on the time deposit credited wholly or partiallly as payment of 12 monthly instalments for the recurring deposit account. The balance, if any, gets credited automatically to the savings account.

Q. What is the frequency of compounding for post office time deposits?
Interest on all time deposits is compounded on a quarterly basis.