Post Office Scheme : Due to the rising inflation these days, people often start thinking about investing in order to secure their future. If you are also planning to make a fixed deposit in a bank, then instead of a bank FD, you should consider investing in this scheme. Let us tell you that if you invest ₹5,00,000 in this scheme, you will receive ₹1,17,538 as interest. Let’s understand the complete details below.
If you are also planning to invest in a bank fixed deposit or post office for guaranteed returns, then this news can be very useful for you. People prefer bank fixed deposits for safe investment and guaranteed returns. However, many banks have recently reduced their FD interest rates, causing inconvenience to customers. In such a situation, you can choose to invest in this scheme instead of bank FDs. Let’s understand the full details below.
Post Office Scheme : You Can Invest in the Time Deposit Scheme
The Post Office Time Deposit Scheme works similarly to bank fixed deposits. You can invest for 1 year, 2 years, 3 years, or 5 years. The scheme currently offers returns between 6.9% and 7.5%. At present, the Post Office’s 3-year Time Deposit Scheme offers an interest rate of 7.10%.
Let’s know more about it below.
Post Office Scheme : Highest Interest Rates on 3-Year Bank Fixed Deposits
Currently, private banks are offering higher interest rates on fixed deposits compared to the post office. DCB Bank, RBL Bank, and Yes Bank are offering a 7.50% annual interest rate on 3-year FDs, which is the highest. After them, Bandhan Bank and IndusInd Bank offer 7.25% annually, and Canara Bank offers 7.20% annually.
Let’s explore more details below.
Post Office Scheme : Interest Rates Offered by Kotak Mahindra Bank and Other Banks
Bank of Baroda is offering a slightly higher rate at 7.15% annually. On the other hand, Axis Bank, HDFC Bank, ICICI Bank, and Kotak Mahindra Bank are offering 6.90% annual interest on 3-year fixed deposits for general citizens.
Post Office Offering the Highest Interest Rate
For your information, the interest rates offered by many banks are around 0.20% lower than what the Post Office offers on fixed deposits. Many government banks like SBI, Union Bank, PNB, and Indian Bank are offering between 6.25% and 6.75% annual interest on 3-year FDs for general customers.
Returns on a 3-Year Time Deposit
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Investment Amount: ₹5,00,000
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Interest Rate: 7.10% per annum
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Estimated Return: ₹1,17,538
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Total Maturity Value: ₹6,17,538
Returns on a 3-Year Fixed Deposit in Major Banks
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Investment Amount: ₹5,00,000
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Interest Rate: Around 6.90% per annum
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Estimated Return: ₹1,14,598
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Total Maturity Value: ₹6,14,598
