Bank fixed deposits
The Fixed deposits 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 online Fixed deposits account. Before opening online FD, get information about minimum and maximum amounts, documents, etc. from the banker. However, different banks have different interest rates on Fixed deposits. The bank’s Fixed deposit 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 accounts. 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 checks and cash. Apart from this, there is a facility to transfer an account open 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 safe for a period of time like the government has given it 1 Has been 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.
In recent times, the 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 fixed deposits of 1 year to 5 years in the post office
Term interest rates
1 year 6.9%
2 years 6.9%
3 years 6.9%
5 years 7.7%
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.