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If you want to open a fixed deposit account in 2022, then opening a fixed deposit (FD) in the post office can be more beneficial than banks.
This is because you are paid more interest when you take a scheme like a Time Deposit Account in the post office as compared to banks. First of all, know what is the post office’s Time Deposit Account Scheme, and the interest benefit over the bank’s fixed deposit account (FD).
Time Deposit Account in Post Office has a high-interest rate than a Bank account in 2022
In the post office’s time deposit account scheme, you can get the time deposit account started by going to any post office.
Under this scheme, you are given more interest on a fixed deposit account than any government bank. If we talk about ongoing interest rates offered by the government banks of India on the fixed deposit account, then it is 5.4%, and the same if you come to open a senior citizen fixed deposit account in these banks, then 6.20% on it.
But if you open this same account under the Time Deposit Account Scheme in the post office, then on this fixed deposit (FD), you are given an interest of 6.7%, and if you have a Senior Citizen fixed deposit account in the post office, then you are given an interest of 7.4%.
In such a situation, you can clearly see the difference between these two, increasing the interest rate by a few percent helps you a lot in getting a decent return.
What is a Time Deposit Account in the post office?
Here in simple words, we mentioned all possible details about the post office’s time deposit account (Given below).
- A time deposit account or an FD through this account is opened by the post office and under this scheme, you can invest your money for 1 to 3 years. On which you are given an investment option with an interest rate of 5.5%.
- Similarly, if you open a time deposit account for 5 years, then in such a situation you are given a 6.7% interest rate.
- To open a time deposit account, you can start with Rs 1000 only.
- You can easily open a time deposit account by visiting any post office.
- Also, there is no limit on the maximum investment in a time deposit account. You can invest as much as you want.
- As a time deposit account, if we talk about the calculation of interest in it, then this interest is calculated on a quarterly basis, and it is paid annually.
- If we compare this interest with the banks, then this interest can prove to be very good returns.
- As an investment in fixed deposits, if you want to open a time deposit account for your children, then you can open that too easily. Along with this, you can open a joint account as a time deposit account. In the future, you can easily convert that joint account to a single Time Deposit Account also.
- If your children are more than 10 years of age, then they can handle the time deposit account themselves.
- At last but not least, You can open any number of time deposit accounts under this scheme in the post office.
FAQ – Post office’s Time Deposit account scheme
1. What is the interest rate for Rs 1 Lakh in a Time Deposit account scheme?
The amount to be invested through this Time Deposit account scheme is from Rs 1000 to no limit. But in the case of 1 to 3 years of FD investment, the interest rate will be 5.5%, and for the case of 5 years of FD investment, the interest rate will be 6.7%.
2. In between the State Bank of India (SBI) and post office who pay the interest rate more on fixed deposit (FD) accounts?
If we compare FD plans of the post office like time deposit account scheme, with SBI FD plans, then the post office FD plans pay more interest rate than SBI FD plans.
For the year 2022, the interest rates of the State Bank of India (SBI) for fixed deposit (FD) accounts are from 4.9% to 5.45% as per the period of investment.