Fixed Deposit: In the post office, you can open a Time Deposit Account for 1 year, 2 years, 3 years and 5 years.00
Fixed Deposit: Fixed deposits have traditionally been the first choice for investment. The reason is that there is protection of investment in it and a guarantee of getting returns from the bank. There is a risk in the investment options related to the market and FD comes in the form of investors who do not want to take risk on their money. But in the current environment, interest rates on FD have also come down. In FD you will get the amount with the return on maturity at the same interest rate that you invested in the beginning. So you need to know where you are getting the best returns – in the post office, in government banks or in private banks?
How to open Fixed Deposit account in post office
You can get a fixed deposit in the post office also. For Fixed Deposit, you have to open a Time Deposit Account in the post office. You can open this account for 1 year, 2 years, 3 years and 5 years. You can also deposit time for a small amount as small as Rs 1000 in the post office. In this, 5.5 percent return is being given on time deposits of 1 year to 3 years. If you deposit the time for 5 years, you will get a return of 6.7 percent. You can also extend this time deposit at maturity. On the other hand, if you withdraw this amount before maturity, then you will get interest like post office savings account only.
Minors above 10 years can also open this account in their own name. At the same time, a joint account can also be opened in it.
| Post office time deposit |
| 1 year | 5.50% |
| 2 year | 5.50% |
| 3 year | 5.50% |
| 5 year | 6.70% |
Interest rate on FD in banks
You can also open Fixed Deposit account online in banks. Interest rates are higher for all banks senior citizens. But on FDs ranging from 1 crore to 2 crores, normal customers can get 4.9 per cent to 5.15 per cent returns in a period of 1 year. You can see that between 5 years and 5 years FDs are giving returns ranging from 5.25 per cent to 5.35 per cent, while the maximum interest rate of 5.5 per cent in a period of 5 years. Now if the time deposits of the post office are giving you better returns than this.
Interest rate on FD in banks
You can also open Fixed Deposit account online in banks. Interest rates are higher for all banks senior citizens. But on FDs ranging from 1 crore to 2 crores, normal customers can get 4.9 per cent to 5.15 per cent returns in a period of 1 year. You can see that between 5 years and 5 years FDs are giving returns ranging from 5.25 per cent to 5.35 per cent, while the maximum interest rate of 5.5 per cent in a period of 5 years. Now if the time deposits of the post office are giving you better returns than this
| Interest Rate on FD in Banks (Normal FD) |
| Bank | 1-3 years | 3-5 years | 5-10 years |
| SBI | 5%-5.10% | 5.30% | 5.40% |
| PNB | 5.20% | 5.25% | 5.25% |
| ICICI Bank | 4.9%-5.15% | 5.35% | 5.50% |
| HDFC Bank | 4.9%-5.15% | 5.30% | 5.50% |
