Bank FD or Post Office FD: Whenever it comes to investing money, the first thought that comes to most people’s mind is FD. In this too, if there is a plan to save tax along with getting returns on FD, then you will have to go for at least 5 years tax saving FD. In such a situation, many times people think that whether to do a 5-year tax saving FD in the bank or Post Office Time Deposit(FD) will be better. Let us tell you this by comparing both.
Which is more secure?
If you do FD in the post office, then the biggest advantage you get is that it is completely safe, because it is government. Although FD done in government banks is also equally safe, but if you do FD in a private bank, then there is some risk in it to some extent.
How much interest is received?
At present, 7.5 percent interest is being given in post office FD. If we compare 5-year FD with all the banks, then the interest rate of post office is the highest. If you make a 5-year FD in SBI, then you will get about 6.5 percent interest. On the other hand, if you make an FD in HDFC Bank and ICICI Bank, then you will get 7 percent interest. On the other hand, 7.4 percent interest is given in DCB Bank, 7.25 percent in Dhanlaxmi Bank, 7.25 percent in IndusInd Bank, 7.25 percent in Yes Bank and 7.1 percent in City Union Bank. That is, the highest interest is given in post office FD.
Which is more convenient?
If we talk about post office FD, then for that you will have to go to the post office. On the other hand, if you want to make an FD in the bank, then you can go to the bank or you can get an online FD. Even if you want to make an FD by giving cash, the bank comes to your home and collects the cash from you and gives the facility of FD.
Which has more tax benefit?
If we talk about tax benefits, both bank FD and post office FD give the same benefits. In both, you can get tax exemption on investment up to Rs 1.5 lakh under section 80C of Income Tax Act.
These benefits are also available in the bank
If you make a bank FD, then in many places you also get the benefit of overdraft facility. Not only this, you can also take a loan at a cheaper rate on bank FD, because it comes under the category of secured loan.
So where to make FD?
If you want to make FD only so that you get strong returns and you can also work a little hard, then you should make a post office FD. On the other hand, if you want convenience and you do not mind a little low return, then you can make FD in the bank.
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