While investing it is of prime importance to do the planning carefully. Before you lock your option of investment, it is always recommended to do the research and analyze every situation possible.
When it comes to an investment it encompasses aspects likes the flexibility, duration, rate of interest, etc. and therefore it is important to analyze carefully as your investment decision does leave an impact. You need to be well informed about your investment so that you are in a good position to evaluate the options available and then come with an investment plan considering all factors.
You may be just wooed away with the current trends of the market. However, you should be clear with the purpose of your investment, the amount you are looking to invest and your needs in terms of finances for the future. It is important to understand the significant difference between a fixed deposit and a post office saving scheme and then make your choice accordingly.
When money is deposited in a bank account or with a non-banking financial company for a decisive period at a defined interest rate then this is known as a fixed deposit. The interest rates of fixed deposit vary from bank to bank and depend on the category of investors like a regular investor or a senior citizen, etc. The fixed deposit has been a conventional financial instrument offered by the banks. Moreover, it is considered to be one of the secured and prominent schemes of investment in India. Over a significant period, the fixed deposit has managed to deliver good returns. If you are somebody who wants to play safe specifically at a point when it comes to investing your hard-earned money then without a doubt fixed deposit is worth a deal.
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This scheme is also known as the small savings scheme. Moreover, it is not a single scheme. A post office saving schemes appends a roll of saving schemes, which in turn provides a risk-free and a dependable return on the investment. The post office schemes are accessible across the nation in all the post offices. One of the most prominent schemes under post office is the Public Provident fund, which is being operated in the post offices of every city furthermore in all both the private, and public sector of banks.
The different schemes available under post office savings schemes are as follows:
The following are some key features of fixed deposits:
The following are some key features of post office schemes:
Let us compare some features of fixed deposit and post office saving schemes:
The decision of investment depends on the sum you are looking forward to investing. A fixed deposit encourages you to invest a lump sum amount for a specific period whereas the post office savings scheme allows you to invest a nominal amount on a regular basis.
Besides, fixed deposits and post office saving schemes has its pros and cons. It needs to be your call with which one to go wit.