All You Need To Know About Post Office FD Interest Rates

Fixed Deposits are one of your best options when it comes to growing your savings at a rapid rate. Among the various FD avenues like banks and finance companies, the Post Office of India also provides various postal deposit schemes in India. A popular FD scheme is the post office FD which offers high interest and a flexible tenor range. To know more about this FD plan continue reading below:

Deposit Amount

The minimum deposit amount of post office FD is Rs. 1000 and there is no upper limit assigned to it. Therefore, you can start an investment even if you don’t have a huge corpus.

Interest payouts

The interest is paid once a year when it comes to post office FDs. Therefore, it has limited options when it comes to interest payouts. Some financiers like Bajaj Finance offer monthly, quarterly, six-monthly, and yearly interest payout options. This enables you to use your deposits for creating a regular income source.

Tenor range

On investing in post office FDs, you will get tenor options of 1, 2, 3, and 5 years. As a result, you can choose a tenor that suits your investment plans.

Interest rate

The post office FD interest rates vary from 5.5 to 6.7% depending on the tenor you choose. This is much higher than bank FD rates that can provide a maximum FD rate of 5.5% currently.

However, if you are searching for an even higher FD rate with the same kind of stability that post office FDs offer, then you can take a look at the FD plans introduced by Bajaj Finance. Its FD plans offer an interest rate of up to 7.25%. The other benefits of investing in its FD plans are listed below:

Better returns

The higher FD interest rate offered by Bajaj Finance FD helps you to earn better returns at maturity. Suppose that you have amassed a corpus of Rs. 30,00,000 and invest Rs. 10,00,000 each in post office FD, bank FD, and Bajaj Finance FD for a period of 5 years. For checking the returns offered by each of these FD plans, kindly refer to the below table:

FD planAmountTenorInterest RateInterest gainsMaturity Amount
Bank FDRs. 10,00,0005 years5.5%Rs. 3,14,067Rs. 13,14,067
Post Office FDRs. 10,00,0005 years6.7%Rs. 3,83,000Rs. 13,83,000
Bajaj Finance FDRs. 10,00,0005 years7.25%Rs. 4,19,013Rs. 14,19,013

Thus, you can see that the returns offered by Bajaj Finance FD is much more than the other FD plans. To check the returns with a different tenor and deposit options, you can check the FD calculator India that is available on its website.

Flexible options

Bajaj Finance offers a flexible tenor ranging from 12 to 60 months. This tenor range is more flexible than the post office FD tenor. Also, you can invest in its FD plans by using an online FD form and you will get a 0.10% for choosing the online investment option.

By investing in its senior citizen deposit scheme you will get a 0.25% extra interest rate than the regular FD rate.

A stable instrument

It is a stable instrument and this can be verified by checking the high credit ratings that Bajaj Finance FD has received by credit rating organizations like ICRA and CRISIL. You can invest in any of its FD plans and rest assured of stable returns at maturity.

Like banks and finance firms, post offices also offer various fixed deposit schemes in India. Among them, the post office FD is a popular investment option that offers good returns along with stability. However, better options are available in the form of Bajaj Finance FD that offers a higher interest rate of up to 7.25%. It comes with a flexible tenor range, a higher FD interest rate to senior citizens and online investors, and other features that make it a better investment option for everyone. Also, is a safe instrument as it has received high ratings by CRISIL and ICRA for safeguarding the investors’ money.

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