Post Office term deposit vs Bank FDs: Highest interest rates for a 2-year tenure
When it comes to investing hard earned money, investors are always looking for safer options that offer good interest rate. Generally the interest rates vary depending on the banks and other institutions who have such schemes. The rate offered by banks on FDs is dependent on the tenure customers opt for and the amount set aside for investing. Not just banks; but now Post Offices also offer great deals with good deposits interest rates based on tenure.
As compared to public and private banks, It is easy to open a Fixed Deposit account in Post Office. The official website of India Post office states that the customers can opt for different schemes they offer in FDs of tenors from 1 to 5 years.
If you are looking for investing in a secured and profit-making scheme, then you must consider the Post Office fixed deposit schemes. The scheme is extremely safe and comes with huge benefits with the government guarantee and quarterly interest rate.
The post office FD can be opened offline with cash deposit or by submitting a bank cheque or online. One can create more than 1 FD at a given time and the best part is these FD’s get you exemptions from Income Tax in over 5 years of fixed deposits.
The minimum deposit amount is Rs 1000 and there is no upper limit set for the deposits in a post office scheme. India post offers 5.5% on the two-year deposit scheme which is a great deal to consider when looking for savings and tax exemptions at the same time.