FD Rates: These Two Post Office Schemes Offers Better Interest Than Many Bank FDs, See Details Here

On Fixed Deposits up to Rs 2 crore, many banks are offering up to 6, and in some banks, it is up to 7.1 per cent interest to senior citizens. However, if you are below 60 and looking for higher FD rates with safe and guarantee returns then there are few options available for you. DCB Bank, Bandhan Bank, IndusInd Bank, RBL Bank and Yes Bank are some of the private sector banks that offer a higher rate of interest on FDs. While, Public sectors bank such as SBI, PNB, Bank of Baroda, and Indian Bank also offers Fixed Deposits to senior citizens and other citizens but their interest rates are relatively low compared to the private banks and the post office saving schemes.

Why Should You Invest In Post Office Scheme?

Investing in the post office can be a rewarding and safe investment. If you wish to make more money, you can put your money in fixed deposit accounts at the post office. You gain a lot of other benefits when you make an FD at the post office. This will provide you with a government guarantee as well as good returns. It's also fairly simple to obtain FD at the post office.  These two schemes are Post Office Time Deposit and Senior Citizen Savings Scheme. Investment in both schemes qualifies for the benefit of section 80C of the Income Tax Act, 1961.

Post Office Time Deposit Account (POTD)

Post Office FD Interest Rates and Tenure

Tenure	Interest Rate
1 year.A/c	5.50%
2 year.A/c	5.50%
3 year.A/c	5.5​%
5 year.A/c	6.7​ %

Please Note - 1) Interest is payable annually but calculated quarterly.
2) You can start FD with a minimum amount of Rs 1000/- and in multiple of Rs 100. There is no maximum limit.
3) Only investment under 5 years tenure qualifies for the benefit of section 80C of the Income Tax Act, 1961.

Senior Citizen Savings Scheme (SCSS)

This scheme is especially designed for Senior citizens (age 60 and above). This scheme offers 7.4% per annum to depositors, and the Interest is payable on a quarterly basis. You can start investing in this scheme with a multiple of Rs 1,000, however, there is a limit of a maximum amount of Rs 15 lakh.
Who else can invest 

• Retired Defense Employees above 50 years of age and below 60 years of age
• Retired Civilian Employees above 55 years of age and below 60 years of age

(subject to condition that investment to be made within 1 month of receipt of retirement benefits)

You Should Know

Making an FD in the post office is guaranteed by the Indian government. The money of the investors is protected in this situation. Offline (cash, check) or online (net banking / mobile banking) FDs are available. You can do more than one FD in this. Aside from that, a combined FD account is possible. You will receive a tax exemption when filing your ITR if you make a 5-year fixed deposit. It is simple to transfer FDs from one post office to another.

Source- Indiapost.gov.in