Many banks have increased their fixed deposit interest rates as a result of the Central Bank’s repo rate steadily rising over the past few months. This covers both the post office time deposit scheme and small financial banks that offer rates that are better than those of major financial institutions. Thus, to help you make a decision if you’re considering investing in either scheme, below are some specifics regarding their interest rates and safety features.
The government guarantees the money invested in the post office time deposit plan, making it a secure investment choice. Senior people and regular clients both receive a 7% interest rate for a 5-year period.
The interest rate on a 1001-day FD offered by Unity Small Finance Bank, on the other hand, is 9% for regular people and 9.5 % for senior citizens. With a 2 to 3-year FD scheme, Jana Small Finance Bank offers an interest rate of 8.1% for regular people and 8.8% for senior citizens. On a 999-day FD, Suryoday Small Finance Bank charges 8.51 percent for regular citizens and 8.76 percent for senior citizens. For a 560-day FD, Ujjivan Small Finance Bank charges general citizens an interest rate of 8% and senior citizens an interest rate of 8.75%.
When investing, keep in mind that you will only receive insurance for up to Rs 5 lakh at a small finance bank. Thus, the post office time deposit scheme can be a better choice for you if you wish to put a significant amount in an FD.
Small financing banks appear to give better interest rates than the post office TD plan. The post office scheme, however, is a safer investment because it has the support of the government when it comes to safety precautions. In the end, the investor’s inclination for higher returns or a safer investment will determine their choice.
