The deposit is accepted for a fixed period chosen by the customer. The minimum period of deposit is 6 months & maximum is 120 months. Under the scheme the periodical interest is compounded quarterly and a lump sum amount is paid to the customer on maturity.
TDS will be deducted if the amount of interest in a financial year exceeds Rs. 40,000/-. If you do not want to pay TDS you will have to submit Form 15G/H along with a copy of PAN card every year.