POTD vs Bank FD: Post Office Term Deposit and Bank FD are similar investment products. Money deposited in the post office is guaranteed by the government and has guaranteed returns. For the July-September quarter of 2024, the interest rate on Post Office Time Deposit (POTD) is 7.5% for a period of five years.
Post Office POTD vs Bank FD: Post Office Term Deposit and Bank FD are similar investment products. Money deposited in the post office is guaranteed by the government and there is a guaranteed return. For the July-September quarter of 2024, the interest rate on Post Office Time Deposit (POTD) is 7.5% for a period of five years. Unlike many banks, senior citizens are not given any higher interest rate than regular citizens under the POTD scheme. Interest is paid annually but the calculation is done quarterly. These deposits can be closed prematurely by submitting the prescribed application along with the passbook at the post office.
Withdrawal of money in POTD is easy
If the money deposited for five years is withdrawn prematurely after four years, interest will be paid at the rate of 4% on the post office savings account.
Bank FD deposits
The Deposit Insurance and Credit Guarantee Corporation (DGIC) guarantees up to Rs 5 lakh in bank FD deposits. The minimum investment varies from bank to bank. The interest rate also varies from bank to bank
Banks like HDFC Bank, ICICI Bank, Axis Bank and IDFC First Bank are offering an interest rate of 7 percent on deposits maturing in five years. IndusInd Bank is offering an interest rate of 7.25 percent on FDs maturing in five years. SBI is offering an interest rate of 6.5 percent for deposits maturing in five years.
| Post Office Term Deposit and Bank FD | General Public (Interest Rate) | Senior Citizen (Interest Rate) |
| Post Office Term Deposit | 7.50% | 7.50% |
| SBI | 7% | 7.50% |
| HDFC Bank | 7% | 7.50% |
| ICICI Bank | 7% | 7.50% |
| Canara Bank | 6.70% | 7.20% |
| IDFC First | 7% | 7.50% |
| Punjab National Bank | 6.50% | 7.30% |
| Bank Of Baroda | 6.50% | 7.15% |
| bank of india | 6.50% | 7% |
| Indian Bank | 6.25% | 6.75% |
| IDBI Bank | 6.50% | 7% |
