Post office schemes are getting 1.5% more interest than bank FDs. Investors can benefit more from these in the long run.
Last week, the government issued an order to reduce the interest rates in Small Savings Schemes (SSS). However, the very next day the government withdrew this order. In this way, the period of high interest rates in neither schemes is expected to continue for the present. At least until the elections in five states are over, then these schemes will continue to get high interest. The results of the assembly elections in five states are going to come on 2 May. In such a situation, after this, the government can implement the decision to cut the interest rates of small savings schemes.
More interest than bank FD
But, with the government withdrawing the decision to cut interest rates, an opportunity has arisen in front of investors. That is, such investors who are planning to invest money for a long time, they can invest money in these schemes. Investing in post office savings schemes at this time, investors can earn far more interest than fixed deposits (FD) of other banks. Also, if at this time investors invest their money in these savings schemes of the post office, then they can lock this amount at the current high interest rates. This will save them from loss due to the fall in interest rates later.
Getting 6.7% interest in post office TD
Compared to the bank FD, up to 1.5 per cent more interest is being available in the savings schemes of the post office.
For example, on a five-year investment in a post office time deposit account (TD), you are getting 6.7 percent interest rate. On the other hand, SBI is offering 5.3 percent interest rate on five-year fixed deposits (FD). Talking about private sector HDFC bank, the bank is paying 5.3 percent interest on FD for the same period. In the case of ICICI Bank, this rate is 5.35 per cent.
6.8% rate on NSC
Apart from this, if you invest money in the National Savings Certificate (NSC) of the post office, then it is getting 6.8 percent interest rate. If you invest Rs 1,000 in a 5-year NSC, then after 5 years you get Rs 1,389.49. The minimum amount to be invested in this is Rs 1,000 and after that it can take money in a coefficient of Rs 100. There is no upper limit for investment in it.
Interest over a period of 10 years
If we talk about Kisan Vikas Patra, then it gets 6.9 percent interest rate on the maturity of 124 months. While the monthly income scheme of the post office gets 6.6 percent interest.
On the other hand, SBI is getting a maximum interest of 5.4 per cent on 10-year FD, ICICI Bank is offering 5.5 per cent and HDFC Bank is also giving 5.5 per cent. In the case of Punjab National Bank, this rate is 5.3 percent.
In this sense, you are getting better interest on post office schemes than FDs of other banks and in terms of investing money for a long time, these can prove to be a good option.