Bank Fixed Deposit Vs Post Office Time Deposit:There are many schemes for small savings in the post office, which also includes the facility of making FD. Like the bank, you can also make FD in the post office. This scheme is available in the name of time deposit in the post office, in which money can be deposited for 1 year, 2 years, 3 years and 5 years. The advantage of keeping money in post office time deposit is that the interest rate on FD is higher here than in the bank. In the post office, 7.5 percent annual interest is being given on 5-year time deposit.
The investment in post office term deposit is fully guaranteed by the government and the return is also guaranteed. For the July-September quarter of the current financial year, the post office is getting 7.5 percent interest on the 5-year time deposit scheme. It is important to note this because at this time the post office time deposit scheme is giving more returns than all bank FDs. Like bank FDs, senior citizens are given more interest under the POTD scheme than the common people.
