On FDs up to Rs 2 crore, many banks are offering up to 6 per cent, and some banks have this rate as high as 7.1 per cent for senior citizens. However, if you are below 60 years of age and looking for higher FD rates with safe and guaranteed returns, there are a few options available to you.
There are few private sector banks like DCB Bank, Bandhan Bank, IndusInd Bank, RBL Bank and Yes Bank, which offer higher interest rates on FDs. While state-run banks like SBI, PNB, Bank of Baroda and Indian Bank also offer FDs to senior citizens and other citizens, their interest rates are lower as compared to private banks and post office savings schemes.
Why should I invest in Post Office Scheme? Investing in the post office can be a profitable and safe investment. If you want to earn more money then you can deposit your money in post office term deposit account. When you make an FD in the post office, you get many more benefits. With this you will get good returns along with government guarantee. Getting FD in the post office is also very easy. These two schemes are Post Office Fixed Deposit and Senior Citizen Savings Scheme. Income tax exemption is available on investment in both the schemes.
Post Office Fixed Deposit Interest Rates: If you look at the interest rates of Post Office Time Deposit, then you will get 1 year interest rate of 5.50 percent, 2 year interest rate 5.50 interest rate, 3 year interest rate 5.5 percent and 5 year interest rate 6.7 Gets percentage.
Keep these things in mind
Interest is payable annually but is calculated quarterly.
You can invest a minimum of Rs 1000 in FD and multiples of Rs 100. It has no maximum limit.
Tax benefits are available on investments made for 5 years.
Senior Citizens Savings Scheme (SCSS): This scheme is specially designed for senior citizens (60 years and above). The scheme offers 7.4% per annum to the depositors, and the interest is payable on a quarterly basis. You can start investing in this scheme with a multiple of Rs 1,000, however, the maximum amount is Rs 15 lakh.
Who else can invest
All retired defense personnel above 50 years and below 60 years of age
All retired civil servants above 55 years and below 60 years of age
Know important things: The guarantee of getting FD in the post office is given by the Government of India. In this way the money of the investors remains safe. Offline (Cash, Cheque) or Online (Net Banking / Mobile Banking) FDs are available. In this you can do more than one FD. Apart from this, you can also open a joint account. If you make a fixed deposit of 5 years, then you will get tax exemption at the time of filing ITR.
