Bank fixed deposits vs post office deposits: who is better?

Bank fixed deposits vs post office time deposits, who is better in both, where should one invest. A bank fixed deposit (FD), also known as a term deposit or time

Raju Choudhary

Bank fixed deposits vs post office time deposits

Bank fixed deposits vs post office time deposits, who is better in both, where should one invest. A bank fixed deposit (FD), also known as a term deposit or time deposit, is a safe investment option offered by banks in India. It allows you to deposit a lump sum amount for a pre-determined period at a fixed interest rate.

Bank fixed deposits vs post office time deposits

Every person who is earning wants to invest a part of the savings after his / her expenses so that his / her investment is safe and also get some income from the invested amount, so Fixed Deposit (FD) is the first of most people Likes People also go to invest in FD because it is risk free. Currently, post office time deposits are also a good option for investment apart from bank fixed deposits. 

If you are thinking of investing in a fixed deposit scheme for savings, then you have both Bank Fixed Deposit and Post Office Time Deposit options. In this news, we are giving you information related to this two investment.

Overall, bank fixed deposits are a good investment option for those who are looking for a safe and secure way to invest their money and earn guaranteed returns. Generally, FDs have higher interest rates than standard savings accounts.

Bank fixed deposit

The FD tenure in the bank starts from 7 days and the maximum is 10 years. Bank FD can be opened in any bank. Most banks also have the option of an online FD account. Before opening an online FD, get information about the minimum and maximum amount, documents etc. from the banker. However, different banks have different interest rates on FDs. The bank’s FD rates can be accessed from their website. However, recently all banks are continuously cutting their deposit rates (FD). SBI is currently paying 6 percent interest to ordinary citizens. On the other hand, if you talk about Axis Bank, then it is paying 6.50% interest on FD. Bank of Baroda is paying interest at the rate of 6.25 percent.

Post Office Time Deposit

The post office has a choice of 1 year, 2 years, 3 years and 5 years. Now it is up to you to decide how many tenures you want to opt for. Talking about security, the security of your deposit in post office deposit is maximum because it is a guarantee on this basis. A time deposit account can be opened in a post office with a minimum of 1000 rupees. There is no limit to the maximum amount to be deposited. It has the facility of both single and joint account. If the age is more than 10 years, then the account is also opened in the name of the minor and the guardian has to look after it until he is an adult. 

The investment made in this scheme for 5 years is eligible for tax benefit and can be exempted under Section 80C of the Income Tax Act 1961. In this, accounts can be opened in both check and cash. Apart from this, there is a facility to transfer an account opened in one post office to another.

SEBI Registered Investment Advisor, and Certified Financial Planner Manikaran Singhal said, ‘Both are equal in terms of returns and taxation, the difference being that bank fixed deposits are protected for a period of time, like the government has given it 1 Has increased from lakh to 5 lakh. At the same time, the entire money is safe in the post office, yes, if you talk about interest, then surely the interest rate is still higher in the post office than in the bank.

At the same time, financial advisor Jitendra Solanki says that in recent times, post office time deposit bank is paying more interest than FD. The rest of the two investment options are almost the same, so it would be right to invest in the post office in terms of investment.

Interest on deposits of 1 year to 5 years in post office

Term interest rates

From 01.01.2024, interest rates are as follows:-

1 yr.A/c6.9%
2 yr.A/c7.0%
3 yr.A/c7.1%
5 yr.A/c7.5 %

How safe is the money

  • Security is guaranteed on deposits of up to 5 lakhs in the bank.
  • Banks use your money in their business.
  • Your 100% investment in the post office guarantees security.


Related Post

Join the Discussion