FD vs POTD: The Reserve Bank of India has cut interest rates. In such a situation, many people are running away from FD for investment. If you want to get better returns, then you can invest in Post Office Time Deposit (POTD). There is no risk of any kind here.
FD vs POTD: These days a big change is being seen among fixed income investors. After the cut in repo rate by the Reserve Bank of India, banks have cut the interest rates of fixed deposits. Due to this, many people are now turning to the post office scheme. Here Post Office Time Deposit (POTD) is attracting investors with higher interest rates. Due to government guarantee, better returns and reach to rural India, these schemes are outweighing traditional bank FDs.
You can easily earn up to lakh rupees in interest from Post Office Time Deposit Scheme. This scheme works just like FD. In this, you can invest your money for a period of 1 to 5 years. In this scheme, investors get a return of 6.9 percent to 7.5 percent interest rate. On the other hand, major government private banks of the country like SBI, HDFC, ICICI, Kotak Mahindra are giving returns on FD at an interest rate of 6.6 percent per annum.
This much interest on different tenures
Under the Post Office Time Deposit scheme, investors can invest for different tenures. In this, money can be deposited for 1 year, 2 years, 3 years and 5 years. Investing for one year gives 6.9 percent interest, while investing money for 2 or 3 years has been fixed at 7 percent. If you invest in this scheme of post office for 5 years, then investors get interest at the rate of 7.5 percent.
Tax exemption is a benefit
Post office 5-year FDs are tax exempt under Section 80C of the Income Tax Act. Just like tax-saving bank FDs. However, interest income is taxable in both cases. Along with this, the reach of post offices is up to villages and small towns. Which makes it easy and reliable for people living in remote areas to invest in it. There is no risk of any kind in this scheme of post office. Returns are guaranteed.
Most Read Articles:
- LIC Cancer Cover Plan! Get cancer treatment under this LIC policy, you will earn money every month, know how
- Ladki Bahin Yojana : Women government employees cheated the government, investigation revealed
- PPF Interest Rate 2025 : How much interest is being received for the July-September quarter, great opportunity for high returns!
