The post office fixed deposit scheme is also known as ‘Post Office Time Deposit’. It is one of the convenient alternatives to the fixed deposit accounts provided by banks. Through this scheme of Indian Postal Service, you can earn a fixed return on the money that is deposited for a specific period.
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The people of rural areas prefer investing in Post Office Fixed Deposit schemes rather than the bank's fixed deposits. In this scheme, you can choose tenure between one year to five years. It is to be noted that the rate of interest increases with the years you select for your fixed deposit account with the post office.
At times, the rate of interest offered by the post office fixed deposit scheme is higher than the interest rate offered by the bank's fixed deposits. Most likely, the interest rate of Post Office fixed deposit lies between the FD rate of bank and FD rate offered by a company.
The Post Deposit Fixed Deposit is suitable for individuals who are conservative with their investment and have a low-risk profile. At times, the interest rate of the post office fixed deposit is higher than the interest rates offered by the fixed deposits of banks.
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Any individual can open a Fixed Deposit account in the post office by cheque or cash. As per the records of the government, the realization date of the cheque is taken as the opening date of the account. The NRIs are not eligible to open a fixed deposit account with Post Office.
Post Office Fixed Deposit is highly suitable for those individuals who are conservative with their investments. Ideally, it is suitable for the individuals who have low-risk appetite with finances and especially those who are looking for a steady source of income as well as protection of capital – like for those who are nearing to retirement or are retired.
|You May like to Read: SBI Interest Rates on Fixed Deposits
The features of post office fixed deposit scheme are:
Rate of Interest on Fixed Deposits: The government of India has revised the rate of interest for the Post Office Fixed Deposit Scheme at the starting if every quarter. This revision is calculated as per the yield on the government securities. The current rate of interest is mentioned in the below table:
Rate of Interest
With all the aforementioned features, a fixed deposit scheme offered by Post Office becomes the best among those who have a low-risk appetite. So, if you want a safe investment option that offers a fixed rate of interest, then you should opt for this scheme as it is one of the best. As mentioned above sometimes the rate of interest offered by a Post Office Fixed Deposit scheme is more than the bank's fixed deposits. So, before opting for any of the investment options cross-check its rate of interest beforehand.
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Rate of Interest (Yearly)
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