In India, Post Office Time Deposits (POTD) and Post Office Fixed Deposits are both Government-backed investment schemes. This scheme allows investors to park their money in any post office across the country. Depending on the tenure of the investment, which ranges from one year to five years, the Post Office Fixed Deposit investment earns interests of 5.5% pa to 6.7% pa. In the first three years, the interest rate is 5.5% pa and later increases to 6.7% pa. Know the exact amount with an FD interest rates calculator.
It is generally known that post office fixed deposits are called time deposits, and they are among the highest return-generating fixed deposits. Compounding of interest in post office fixed deposits takes place quarterly, and the maximum tenure is five years. It might be great to know your earnings, so use an FD interest rates calculator Interest rates for different time deposits at the post office are as follows
- 6.90% for 1 year
- 7.00% for 2 years
- 7.20% for 3 years
- and 7.30% for 5 years.
For a period of five years, Section 80C allows tax deductions of up to 1.5 lakhs. There is a minimum deposit requirement of Rs. 1000. Minors can also open fixed Deposits with the assistance of a legal guardian. Both online and offline Post Office Fixed Deposits are available.
In order to open fixed deposits online, the Post Office offers mobile banking and intraoperative net banking options. Since 2018, customers can transfer funds between different post offices through Post Office Internet Banking. Therefore, they can open a post office fixed deposit account online, but they must possess the following items.
- Savings account that is active
- PAN card
- KYC documentation verified
- An email address and a valid mobile number
- DOP ATM or debit card in active status
Opening a Post Office Fixed Deposit online can be done by following these steps.
- Use your registered User ID and password to access Post Office e-banking.
- Select General Services from the drop-down menu.
- Go to the ‘Service Request’ section and open it.
- Use the ‘New Request’ option to request the opening of a time deposit account.
If you prefer to open a Fixed Deposit offline, you can visit the nearest India Post branch. It would help if you kept some things in mind when investing in post office fixed deposits. It is an option you should consider when investing in debt. Just investing in FDs can make you poor instead of rich. It doesn’t account for inflation. The investor should invest in a mix of assets that suit his age and risk level.
Therefore, mutual funds are essential for higher returns, diversification of assets, and beating inflation. There are also tax-efficient instruments available through mutual funds, where your returns are not fully taxable in certain situations.
Post office FD rates are higher than those offered by Bajaj Finance. Your FD rates will vary between 5.65% – 6.75% p.a., depending on your age, FD tenure, investment mode, type, and interest payout frequency.
Indian investors have long used fixed deposits as investment options. India makes use of it as one of its most preferred investment vehicles. A Fixed Deposit is simple to understand, can be opened easily, and is hassle-free for most people to handle and manage. There are many benefits to investing in FDs, including safety, liquidity, and income assurance. Millions of Indians prefer the surety of a fixed deposit, and you can assess it with an online FD interest rates calculator.
With just Rs 25,000 in your pocket, you can open a Bajaj Finance FD. FDs are available in tenors from 12-60 months, along with interest payout options such as monthly, quarterly, half-yearly, and yearly. Tax rebates of up to Rs 5,000 are available on Bajaj Finance FD returns under Section 80C of the Income Tax Act. In this case, Bajaj Finance cumulative and non-cumulative FDs may interest you if you are looking for alternative investment options with assured returns.