When it comes to investing money, you need to cautiously plan and research before settling with a choice. This is because the choice you make can influence several parts of your investment like the tenure, the interest rates, and the adaptability of the policy, among others. A good savings option provides you with the best returns, high security, and backing, liquidy, and ease of access.
Fixed deposits and post office accounts have turned out to be two popular means of investing money.
FDs are the traditional fixed deposit investment instruments that banks in India offer. You can invest any amount of money into a fixed deposit account for a definite period. This money then attracts interest, which is returned to you after the policy attains its maturity value. FD interest rates vary with banks.
On the other hand, post office savings schemes work under the post office. They are known for offering a high rate of interest — quite perfect for small scale investments in places where other online modes of investments are not so accessible.
Here, we will analyse the difference between FDs and saving schemes offered by post offices to choose the better option between the two.
Rate of interest
To compare the interest rates between FDs and post office savings schemes, we will look at the FD options available on Finserv MARKETS.
Fixed deposits on Finserv MARKETS offer interest rates as high as 8.50 percent. For senior citizens, the interest rate is 0.35 percent higher than the general rate of interest. The deposits under a post office savings scheme offer an interest rate of 7.6 percent, whereas the interest rates offered by Kisan Vikas Patra and Sukanya Samridhi scheme are 7.3 percent and 8.1 percent respectively.
Tax saving benefits
Contrasted with fixed deposit accounts on Finserv MARKETS, a few plans offered by the post office are believed to be more tax productive. For example, what is earned from PPF is tax excluded. Then again, all that is collected from FD is taxable. Under Section 80C of the Income Tax Act, it is conceivable to get tax reserve funds for fixed deposits. On the other hand, some of the post office schemes like National Savings Certificate, PPF, and Sukanya Samriddhi have the option to provide comparable tax benefits to the investors.
Quality of service
When it comes to providing customer service, post offices kind of lag behind from private institutions, what is to blame but the vast volume and limited infrastructure and support that they operate with? On the other hand, fixed deposits on Finserv MARKETS come with excellent customer support. Besides, you can also track the progress of your FD accounts with just a few taps on your phone. If you have any questions related to your bank account, you call the Finserv team, and they resolve the query almost immediately. Accessibility is one of the critical factors here as you no longer have to call up your post office or visit it every time you want to track how your savings are fairing.
Another benefit of having an FD on Finserv MARKETS is the security of the scheme. Your FD accounts are protected with stable ICRA MAAA and CRISIL FAAA rating, which means that your earnings are safe.
If you are looking forward to having your money saved up in a scheme where it is safe and secure, as well as attracts high rates of interest regularly over a period, then fixed deposit accounts can be your go-to choice. With a higher rate of interest for senior citizens, you can open an FD for your parents to guarantee them a consistent source of income for your retirement years. FD accounts also can help you save money for your future plans, such as your dream holiday or funding college education for your kids.
The process to open an FD on Finserv MARKETS is quite easy and hassle-free. All you have to do is input your name and other necessary details, provide some documents to complete the mandatory KYC process, choose a plan and deposit money in it to activate it. That done, you can track your account and returns online anytime, anywhere. The FD schemes have a tenure of one to five years.
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