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Monday, October 25, 2021

Post Office TD Vs SBI FD: Investors Attention! For every 10 lakh deposit, post office will get Rs 82,222 more

Post Office TD Vs SBI FD

A fixed deposit (FD) is a popular option for small savings schemes, in which returns are guaranteed. Therefore, the confidence of investors who do not bear the risk of the market at all is still very much on FD. Being a tax saver option makes it more attractive. Most of the country’s small and big, government and private banks offer FD facility. Their tenure can be from 7 days to 10 years. Along with banks and financial institutions, post office or post office also offers FD of 1 year to 5 years. In the post office, it is called a time deposit scheme.

Usually many customers FD in the same bank in which they have an account. This possibility is more the case of big banks. That is, if there is an account in the largest government bank of the country like SBI, then many customers have to FD, then SBI will choose. This is also the case with other banks. But this may not be the correct strategy. The post office is getting 1.3 percent more interest annually on 5-year FD than SBI. At the same time, your 100 percent investment in the post office is also safe. Because there is a sovereign guarantee of the government on deposits there.

Calculations: Post Office

Fixed Deposit (FD) amount: 10 years
Tenure: 5 years
Rate of Interest: 6.7% per annum
Amount on Maturity: Rs 13,83,000

Calculations: State Bank of India

Fixed Deposit (FD) amount: 10 years
Tenure: 5 years
Rate of interest: 5.4 percent annually
Amount on Maturity: Rs 13,00,778

Where did you get more benefit?

Here, the amount is getting Rs 13,83,000 on maturity for FD in the post office of 5 lakhs for 5 years. Whereas on FD for 5 years in SBI, the amount on maturity is getting Rs 13,00,778. It is clear that compared to SBI you will get the benefit of Rs. 82222 in the post office.

The speciality of post office time deposit scheme

  • The post office has 1-year, 2-year, 3-year and 5-year FDs, with interest ranging from 5.5 per cent to 6.7 per cent per annum.
  • It can be opened as a single and a joint account. There can be a maximum of 3 adults in a joint account. An account can be opened in the care of a parent in the name of a minor child over 10 years of age.
  • Any number of accounts can be opened in a post office. Nomination facility is available at the time of opening the account or later.
  • The account can be easily transferred from one post office to another post office.
  • A single account can be converted to a joint account.
  • After 5 years of maturity, it can be extended for another 5 years.
  • There is a provision for a penalty on withdrawal of pre-mature money.
  • Investing up to Rs 1.5 lakh in a 5-year FD gets the benefit of tax exemption under Section 80C of the Income Tax Act.

 

Source: www.financialexpress.com

Nisha Chawlahttps://www.businesskhabar.com/
She is an expert in Banking, Finance and working with an international bank. She sharing her ideas and knowledge with Business Khabar.
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