Ans: No, A Self-Managed Superannuation Fund (SMSF) cannot invest in fixed deposits under India’s Post Office Savings Schemes, such as the Post Office Time Deposit Account (also known as the National Savings Time Deposit Scheme).
Explanation: SMSFs have flexibility to invest in a wide range of overseas assets under Australian regulations—provided they comply with the Superannuation Industry (Supervision) Act 1993 (SIS Act), the fund’s trust deed, investment strategy, and sole purpose test.
India’s Post Office Fixed Deposit (Time Deposit) Scheme:
Eligible Account holders
Based on official scheme rules (National Savings Time Deposit Scheme, 2019) and operational guidelines, the following persons/entities are eligible to open an account with the Post Office Fixed Deposit Scheme.
- A single adult (Indian citizen/resident).
- Joint account with up to three adults.
- A minor aged 10 years or older (operating independently).
- A guardian on behalf of a minor or person of unsound mind.
Requirements: Applicants must provide KYC documents (e.g., Aadhaar, PAN, proof of address in India) and open the account at a post office or authorized bank branch.
Non-eligible account holders
The following persons/entities are not eligible to open an account with the Post Office Fixed Deposit Scheme.
- Non-Resident Indians (NRIs)
- Foreigners (Non-Indian Citizens)
- Overseas Entities
The above specific eligibility rules for India’s Post Office schemes prohibit non-residents, foreigners, and entities like trusts or SMSFs from participating in the scheme.
