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Post Office Fixed Deposit Interest Rates 2020

Post Office Fixed Deposit

Fixed Deposit is one of the safest investment avenues offered by banks, Non-Banking Financial Companies (NBFCs) and post offices. Post Office Fixed Deposit, also known as Post Office Term Deposits, are investment avenues offered by the Indian Postal Services. As a preferred avenue for those looking for a safe investment avenue, these Post Office FDs are backed by the sovereign guarantee of the Government of India.

Post Office FD Interest Rate

Post Office Fixed Deposit interest rates are decided by the Government of India (every quarter) under Small Saving Schemes. These rates are in turn determined as per the performance of government securities/bills. Post Office Fixed Deposit with a tenure of 5 years has an interest rate mark-up of 25 bps over the yield of comparable government securities.

Here’s a comparison of latest FD interest rates offered by post offices, with FD rates offered by Bajaj Finance Limited.

Tenure (years) Post Office FD Interest Rates Bajaj Finance FD Interest Rates
1 year 5.5% 6.9%
2 year 5.5% 7%
3 year 5.5% 7.10%
5 year 5.7% 7.10%

Bajaj Finance offers additional 0.10% higher FD interest rates on investing in an end-to-end online FD, whereas senior citizens can look to gain 0.25% higher FD rates.

Post Office Fixed Deposit vs Bajaj Finance Fixed Deposit

While you can think of redirecting the interest earned from Post Office FD into various other post office schemes, you should also consider alternative options such as high-yielding company FDs offering a similar guarantee and zero to low risk.

Even though post office FD may offer a higher interest rate as compared to bank FD, it cannot match the interest rate offered by Company FDs. You can ensure maximum returns with company FDs which are guaranteed by well-financed and liquid companies like Bajaj Finance. Let us see how you can benefit even further with a Bajaj Finance FD.

  • Investment rate – Bajaj Finance FD offers higher interest rates up to 7.35% which is higher than any other fixed-income option in the current state of the economy. A post office FD will allow a maximum of 5.7% and this can get further reduced if the G-sec yield falls.
  • Flexibility – Bajaj Finance FD offers flexible terms for premature withdrawal (as compared to Post Office FD). It also provides an option to avail loan against FD at a marginal interest rate.
  • Ease of access – While a post office FD may not offer you many online features, you can easily invest in a Bajaj Finance online FD that enables you to reap the benefit of an end-to-end online paperless procedure. Additional features of doorstep document pickup, multi-deposit and auto-renewal make it even more convenient. You can open Bajaj Finance FD account using a debit card at a few locations.

Bajaj Finance is also accepting deposits from NRIs, and is rated high on safety and stability, which makes it one of the best investment avenues for those with lower risk appetite. To help you compare the features of Post Office Fixed Deposit and Bajaj Finance Fixed Deposit, here’s a table detailing the differences between the two:

FEATURE POST OFFICE FD BAJAJ FINANCE FD
High-Interest Rate No Yes
Quarterly Interest Rate Revision Yes No
Flexible Premature Withdrawal No Yes
Online Account Management No Yes
Multi-deposit Facility No Yes
Auto-Renewal Facility Only at CBS-enabled branches Yes
NRI FD No Yes

With 2.35 lakh customers and a total deposit book size of more than 20,000+ crores, you can trust Bajaj Finance FD to give you maximum returns with the lowest risk.