Latest news with #PostOfficeTimeDeposit
Time of India
03-07-2025
- Business
- Time of India
These government schemes offer higher interest rate than SBI, HDFC, PNB and ICICI Bank
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Wealth 1. 240% return on Sovereign Gold Bonds: RBI announces redemption price of these SGBs Post Office schemes vs bank FD Institution Tenure Regular Citizens (%) Senior Citizens (%) Post Office (POTD) 5 years 7.5 7.5 NSC 5 years 7.7 7.7 SBI 5 years 6.3 6.8 HDFC Bank 5 years 6.4 6.9 ICICI Bank 5 years 6.6 7.1 PNB 5 years 6.5 7 SCSS 5 years NA 8.20% Are Post Office schemes and FD safe? Many banks have reduced fixed deposit and savings account interest rates after the Reserve Bank of India cut the repo rate by 100 basis points or 1% since February this the government has kept the interest rate on small savings schemes like Public Provident Fund (PPF), National Savings Scheme (NSC), Senior Citizen Savings Scheme (SCSS) and others unchanged on June 30, 2025. The new rates will be applicable for the September quarter of FY makes more sense for investors to compare the returns from small savings plans with the fixed deposits of major banks like State Bank of India (SBI), HDFC Bank ICICI Bank , and Punjab National Bank (PNB).Now, let us compare small savings schemes interest rates and FD rates of top banks such as SBI, HDFC Bank, ICICI Bank, and evaluate the interest rates on 5-year term deposit, National Savings Certificate (NSC), and Post Office Time Deposit (POTD) alongside bank fixed deposits with a 5-year Post Office Time Deposit (POTD) (5 Y) offers an interest rate of 7.5% for all citizens, while the NSC provides a slightly higher rate of 7.7%. SCSS offers an interest rate of 8.2% for senior citizens. All these small savings schemes have a 5 year Bank of India (SBI) 5-year term deposit offers an interest rate of 6.3% for regular depositors and 6.8% for senior citizens. Among major banks, HDFC Bank provides 6.4% for general citizens and 6.9% for senior citizens, while ICICI Bank offers slightly higher rates at 6.6% and 7.1% respectively. PNB, on the other hand, offers 6.5% for general citizens and 7% for senior Office schemes are backed by the government of India, because of the sovereign backing, these accounts are especially attractive to conservative savers who want to guard their principal while still earning predictable fixed deposits, on the other hand, are also seen as secure investments, yet their coverage comes with a limit. Most of the banks are covered under the Deposit Insurance and Credit Guarantee Corporation (DICG). However, bank depositors should note that your amount is insured up to Rs 5 lakh (including interest). Any balance above that threshold may or may not be recovered in case the bank fails.
Time of India
03-05-2025
- Business
- Time of India
Post office vs bank FD: Highest 3-year interest rate on fixed deposit for Rs 5 lakh investment in 2025
Tired of too many ads? Remove Ads Current interest rate on Post Office 3-Year Time Deposit Tired of too many ads? Remove Ads Highest interest rate in 3-year banks FDs Popular in Wealth Current FD rates for 3-year FDs for general public Axis Bank 6.90 Bandhan Bank 7.25 DBS Bank 6.50 DCB Bank 7.50 Federal Bank 7.00 HDFC Bank 6.90 ICICI Bank 6.90 IDFC FIRST Bank 6.25 IndusInd Bank 7.25 Karnataka Bank 6.50 Kotak Mahindra Bank 6.90 RBL Bank 7.50 South Indian Bank 6.70 YES Bank 7.50 PUBLIC SECTOR BANKS Bank of Baroda 7.15 Bank of India 6.50 Bank of Maharashtra 6.50 Canara Bank 7.20 Central Bank of India 6.75 Indian Bank 6.25 Indian Overseas Bank 6.50 Punjab National Bank 6.75 Punjab & Sind Bank 6.00 State Bank of India 6.75 Union Bank of India 6.70 How much will you earn if you invest Rs 5 lakh now? For risk-averse investors looking for guaranteed returns, fixed deposits (FDs) remain the go-to investment option. Banks are on a spree to reduce the FD interest rate (after the Reserve Bank of India cut the repo rate). The government, on the other hand, has not reduced the interest rate on the small savings schemes, including the Post Office Time Deposit (POTD), yet. If you are looking to book fixed deposits at the highest interest rate, then which one is better in 2025? Here is a detailed comparison to help you make an informed Post Office 3-Year Time Deposit offers an interest rate of 7.10% per annum, compounded quarterly and paid annually. The current interest is valid till June 30, 2025. For the next quarter (July-September), the government will review the interest rate and can change is a government-backed scheme offering sovereign guarantee, making it one of the most secure investment opportunities available. Post Office Time Deposits provide peace of mind with guaranteed returns and no chance of default. However, the Post Office FD does not provide special rates for senior citizens, and the interest is paid annually. There is no option to get interest from the Post Office FD on a cumulative basis, i.e., at the time of comparison, several private banks still offer higher interest rates on fixed deposits. DCB Bank RBL Bank , and YES Bank lead the pack with 3-year FDs offering 7.50% per annum, followed by Bandhan Bank and IndusInd Bank at 7.25% per annum, and Canara Bank at 7.20% per annum. Bank of Baroda also slightly edges out with a 7.15% interest rate per the other hand, many major banks, including Axis Bank ICICI Bank , and Kotak Mahindra Bank , are offering 6.90% per annum on 3-year FDs for general citizens. This is 20 basis points lower than the interest rate offered by the Post Office FD. Several public sector banks such as SBI PNB , and Indian Bank also offer between 6.25% and 6.75% to the general public. This makes the Post Office FD more attractive in comparison. While the difference in returns may seem marginal over three years, the Post Office's government backing provides an additional layer of safety, especially for conservative Paisabazaar as on April 30, 2025If you invest Rs 5 lakh in the Post Office FD at 7.10% per annum (compounded quarterly), the maturity amount after 3 years will be approximately Rs 6,17,538. This gives you total interest earnings of Rs 1,17,538 over the if you invest the same amount in banks offering lower rates, such as SBI, HDFC, ICICI, Axis, or Kotak-all offering around 6.90%, the maturity amount would be about Rs 6,14,598, resulting in Rs 1,14,598 interest. That's nearly Rs 2,940 less than the Post Office the other hand, banks offering higher interest rates, such as DCB, RBL, and YES Bank at 7.50%, would give you a maturity value of approximately Rs 6,24,487, or Rs 6,949 more than the Post Office FD. Similarly, Canara Bank at 7.20% would give around Rs 6,19,911, slightly higher than the Post Office summary, if you invest Rs 5 lakh:Post Office FD (7.10%): Rs 6,17,538Most large banks (6.90%): Rs 6,14,598Top private banks (7.50%): Rs 6,24,487
