FD vs POTD: Interest rates have been cut by the Reserve Bank of India. In such a situation, many people are running away from FD for investment. If you want to get better returns, then you can invest in Post Office Time Deposit (POTD). There is no risk of any kind here.
FD vs POTD: These days a big change is being seen among fixed income investors. After the cut in repo rate by the Reserve Bank of India, banks have cut the interest rates of fixed deposits. Due to this, now many people are turning to the post office scheme. Here Post Office Time Deposit (POTD) is attracting investors with higher interest rates. Due to government guarantee, better returns and reach to rural India, these schemes are outweighing traditional bank FDs.
You can easily earn up to lakh rupees in interest from Post Office Time Deposit Scheme. This scheme works just like FD. In this, you can invest your money for a period of 1 to 5 years. In this scheme, investors get a return of 6.9 percent to 7.5 percent interest rate. On the other hand, the country’s major government private banks like SBI, HDFC, ICICI, Kotak Mahindra are giving a return of 6.6 percent annual interest rate on FD.
This much interest on different tenures
Under the Post Office Time Deposit scheme, investors can invest for different tenures. In this, money can be deposited for 1 year, 2 years, 3 years and 5 years. Investing for one year gives an interest of 6.9 percent, while investing money for 2 or 3 years has been fixed at a rate of 7 percent. On the other hand, if you invest in this scheme of Post Office for 5 years, then investors get interest at the rate of 7.5 percent.
Tax exemption is a benefit
Post office 5-year FDs are tax exempt under Section 80C of the Income Tax Act. Just like tax-saving bank FDs. However, interest income is taxable in both cases. Along with this, the reach of post offices is up to villages and small towns. Which makes it easy and reliable for people living in remote areas to invest in it. There is no risk of any kind in this scheme of post office. Returns are guaranteed.
Most Read Articles:
- PPF Interest Rate 2025: How much interest is being received for the July-September quarter, know here
- Employees DA Hike 2025: Dearness allowance of government employees will reach 60%? know when will it be announced?
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
