Post Office Investments: Get More Interest Than Bank FD
Many banks are offering up to 6 percent on FDs up to Rs 2 crore, and some banks offer rates as high as 7.1 percent for senior citizens.
However, if you are below 60 and are looking for higher FD rates with safe and guaranteed returns, there are a few options available to you.
There are some private sector banks like DCB Bank, Bandhan Bank, IndusInd Bank, RBL Bank, and Yes Bank that offer higher interest rates on FDs.
While public sector banks like SBI, PNB, Bank of Baroda, and Indian Bank also offer FDs to senior citizens and other citizens, the interest rates are lower as compared to savings schemes offered by private banks and post offices.
Why Should You Invest in the Post Office Savings Scheme?
Investing in the post office can be a profitable and safe investment.
If you want to earn more money, you can put your money in post office term deposit accounts. When you get your FD done at the post office, you also get many other benefits.
With this, you will get government guarantees as well as good returns. It is also very easy to get FD done at the post office.
These two schemes are post-office term deposits and senior citizen savings schemes. Both schemes offer income tax breaks on investments.
Post Office Time Deposit Interest Rates
If you look at the interest rates of a Post Office Time Deposit, you will get a 1 year interest rate of 5.50 percent, a 2 year interest rate of 5.50 percent, a 3 year interest rate of 5.5 percent, and a 5 year interest rate of 6.7 percent.
Keep These Things in Mind
1) Interest is payable annually but is calculated quarterly.
2) You can invest in FDs with a minimum of Rs 1000 and in multiples of Rs 100. There is no maximum limit.
3) A tax benefit is available on the investment made for 5 years.
Senior Citizen Savings Scheme (SCSS)
This scheme is specially designed for senior citizens (60 years and older). The scheme offers 7.4% per annum to the depositors, and the interest is payable on a quarterly basis.
You can start investing in this scheme with multiples of Rs 1,000; however, the maximum amount is Rs 15 lakh.
Who Else Can Invest?
- Retired Defense Personnel above 50 and below 60 years
- Retired civil servants above 55 and below 60 years
Know the Important Things
The guarantee of getting FD at the post office is given by the government of India.
In this situation, the investors’ money remains safe. FDs are available offline (cash, check) or online (net banking, mobile banking).
There can be more than one FD in this.Aside from this, you can also open a joint account. If you make a 5-year fixed deposit, you will be exempt from paying taxes when you file your ITR.