Fixed Deposit: Post Office Time Deposit Scheme is a safe investment option as the government guarantees the money invested in it.
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Post Office FD vs Small Finance Bank FD: With the continuous increase in the repo rate of the Reserve Bank in the last few months, many banks have increased the interest rates of their fixed deposits. This includes small finance banks that are offering higher rates than larger banks and even post office fd scheme also includes. So, if you are thinking of investing in any of the schemes, we have some details about their interest rates and security measures that will help you decide.
Post Office Time Deposit Scheme is a safe investment option as the money invested in it is guaranteed by the government. Both general customers and senior citizens get an interest rate of 7 per cent for a period of 5 years. On the other hand, Unity Small Finance Bank offers 9 per cent interest rate on 1001 days FD to general citizens and 9.5 per cent to senior citizens. Jana Small Finance Bank offers an interest rate of 8.1 percent for 2 to 3 years FD scheme for general citizens and 8.8 percent for senior citizens.
On the other hand, Suryoday Small Finance Bank offers an interest rate of 8.51 percent to general citizens and 8.76 percent to senior citizens on FD of 999 days. Ujjivan Small Finance Bank offers 8 percent interest rate on FDs of 560 days to general citizens and 8.75 percent to senior citizens.
Keep this in mind while investing
In Small Finance Bank, you will get insurance only up to Rs.5 lakh. In such a situation, if you want to invest a large amount in FD, then the time deposit scheme of the post office can be a better option for you.
In terms of interest rates, Small Finance Banks offer better rates than Post Office TD Scheme. However, when it comes to safeguards, the post office scheme is a safe investment as it is backed by the government. Ultimately the decision comes down to the investor’s preference for higher returns or safer investments.