Fixed Deposits vs Post Office Time Deposits Know Interest Rates Benefits for Senior Citizens

Investors of all ages favor fixed deposits (FDs) as one of their favorite investment options. Here we going to explore the information about Fixed Deposits vs Post Office Time Deposits. FDs are straightforward, and they likewise permit an elevated degree of safety and speedy liquidity, making them a hot number one among financial backers. FDs are attracting a lot of attention from investors in the face of rising interest rates and volatility in other investment instruments like shares and mutual funds. Read More Business News on our website.

Fixed Deposits vs Post Office Time Deposits, Know Which One is Best?

Financial backers should comprehend their necessities accurately and pick the right FD item to get the most extreme advantage out of their ventures. While the majority of banks have altered the interest rates on their FDs, the Indian government has also recently revised the rates for post office time deposits. All in all, which one would it be advisable for you to choose — Banks FDs or the mail center time stores?

Let’s see the difference and which to opt for!

Ease of Investing:

Bank Fixed Deposits and Postal Time Deposits are both simple investments. Both investments can be started on their respective online platforms. Physical access to the local branch is one factor that has the potential to make a difference. While in the case of bank FDs, the investor typically has a choice of several local banks where they can open an FD account, unlike in the case of post offices that are located far from their location.

Security of your Investment:

Mail center FDs accompany a sovereign assurance i.e., it’s supported by the public authority of India. However, the Deposit Insurance and Credit Guarantee Corporation (DICGC) guarantees bank deposits up to Rs 5 lakh. As a result, both types of fixed deposits provide a high level of investment security.

The post office time deposit is available for a minimum of one year and a maximum of five years, respectively. 

Bank FDs have a longer tenure. You can invest in bank FDs for as little as seven days and as much as ten years, on average. Because you can also invest for less than one year or more than five years, bank FDs offer greater flexibility in terms of tenure selection.

Benefits for Senior Citizens:

The majority of banks offer senior citizens higher interest rates on FDs. The financing cost benefit goes from .5% to .75% dad over the non-resident fixed stores. Then again, the mailing station time store offers a similar loan fee for senior residents and non-senior resident financial backers

Comparison of Interest Rates:

The quarterly compounding of interest is used to calculate the interest rates on bank FDs and post office time deposits. Premium on bank FD relies upon the arrangement rate choice gotten some margin to time, though premium on mailing station time stores is reexamined each quarter.

Here is the examination table appearance the well-being rate presented by a portion of the banks and the most elevated revenue on mailing station FD. It demonstrates that the post office FD’s interest rate is lower than the best rate offered by private sector banks, despite being slightly higher than that of public sector banks.

The table displays the bank/post office FD interest rate; For deposits of up to Rs 2 crore, the highest interest rate offered by a bank or post office FD, regardless of the tenure, is taken into consideration. The table includes selective banks.

Conclusion

According to Bankbazaar.com, CEO Adhil Shetty, FDs may provide more flexibility in terms of liquidity compared to mail-order stores. Most banks and other financial organizations allow early withdrawal of FDs, albeit there can be a fee. Yet, Postal Center Stores might only offer a limited range of liquidity options. Post Office Deposits and Fixed Deposits are both secure investment options. Investors should take their investment goals, risk tolerance, and time horizon into consideration before choosing between FDs and Post Office Deposits.