Top Bank FD Rates: If you currently have a lump sum of ₹ 50,000 and are wondering where to deposit it, this news is very useful. Let’s explore where you can invest your money.
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Best FD Rates for 50000: Everyone earns by doing a job, but the real expert is the one who saves some money while working. Although some people invest the money in the market, but some people do not want to take any risk at all, hence they get the money FD done . If you also have some money and you want to get it FD done, then this news is for you only. Actually today we are going to tell you whether your money will grow faster if kept in the post office or it will grow if kept in the bank.
In fact, like post offices, banks also offer FDs. Let’s explore where it would be best to invest an FD if you have 50,000 rupees.
Where will the money be safe?
When it comes to money, the biggest issue is investing it safely. If we talk about post office, it comes under the central government. The government is responsible for every rupee deposited here. This is also called sovereign guarantee. Money deposited in post office can never be lost. That is why post office is the first choice of the elderly. Whereas if we talk about FD in bank, then getting FD done in a government bank is safer than a private bank. However, your deposit amount (principal + interest) up to Rs 5 lakh in every bank is insured under ‘ DICGC ‘. In such a situation, your money is going to be safe in both the places.
Where do you get more interest?
Post Office FDs are called ‘Time Deposits’ (POTDs). Currently, the rates are as follows.
1-year FD: Around 6.9%
2-year FD: Around 7.0%
3-year FD: Around 7.1%
5-year FD: Around 7.5%
Bank FD
Bank rates vary from bank to bank and are subject to change from time to time:
Large Public Sector Banks (SBI/PNB): Between 6.50% to 7.00% for 1 to 3 years.
Private Banks (HDFC/ICICI): Around 7.00% to 7.25%.
Small Finance Bank: Here you can get high interest ranging from 7.5% to 8.25%.
Note: If you are over 60, you qualify as a senior citizen and thus receive slightly higher interest rates than the general public.
You can also make FDs at post offices for 1, 2, 3, or 5 years, but at banks, you can make FDs for 7 days to 15 months. So, if you want to make an FD for a shorter period, a bank is the best option.
Tax exemption will also be available
If you invest Rs 50,000 for 5 years, you get exemption under Income Tax Section 80C.
Post Office 5-year FD (POTD) is eligible for tax exemption.
The exemption is available only on the bank’s ‘Tax Saver FD’ (which has a lock-in period of 5 years).
However, the interest earned on FDs is added to your annual income and you are taxable on it.
Additionally, if you want to break your FD, some banks offer the option, but typically charge a penalty of 0.5% to 1%. Post offices, on the other hand, have stricter rules. You can’t close an FD before six months. Furthermore, if you close after six months but before one year, you’ll only earn the same interest as a savings account (around 4%).
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