Post Office vs Bank FDs: Which One Works Better for Your Money?

Looking to lock in guaranteed returns—but not sure whether to pick a Post Office FD or a Bank FD?


You’re not alone. Fixed deposits are one of the most popular ways to grow your money safely in India. But when it comes to choosing between a post office FD and a bank FD, the differences can impact your returns, access, and convenience.

Let’s simplify the decision with a quick comparison across the key factors—so you can pick what suits your goals best.

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Topic	Mandatory/ Optional	Char Limit	Content to update on page
Heading Text	Mandatory	90 Char	Highest Credit Ratings | Trusted with 1.4 million Deposits | Assured Returns on FD
CTA Text	Mandatory	40 Char	Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/webform/Deposit/depositLandingPage#fd
Nudge 1	Mandatory		Senior Citizen
Title 1 (Rate of Interest) R1	Mandatory	17 Char	Interest Rate*
Value		10	Up to 7.30% p.a.
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Flexible Tenure
Value		10	12-60 months
Title 3 (Min. Tenor) R1	Mandatory	17 Char	Deposit Amount
Value		10	Rs. 15,000 to Rs. 3 cr
Nudge 2	Mandatory		Non-Senior Citizen
Title 1 (Rate of Interest) R1	Mandatory	17 Char	Interest Rate*
Value		10	Up to 6.95% p.a.
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Tenure
Value		10	12-60 months
Title 3 (Min. Tenor) R1	Mandatory	17 Char	Deposit Amount
Value		10	Rs. 15,000 to Rs. 3 cr
Field 1			Enter your mobile number
Field 2			Please enter your 10-digit mobile number to proceed
Disclaimer text	Mandatory		By proceeding, you agree to ourTerms and Conditions
XF Path			/content/experience-fragments/bajajfinserv/web/in/en/investment/deposits/fd/form-widget/master

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Topic	Mandatory/ Optional	Char Limit	Content to update on page
Heading Text <H1>	Mandatory	45 Char	Fixed Deposit
Description Text	Mandatory	90 Char	Trusted by over 5 lakh customersFixed Deposits worth more than Rs. 50,000 crorebookedRated CRISILAAA/STABLEand [ICRA]AAA(STABLE)Special tenure of 18, 22 and 33 months offered for higher returnsUp to 0.35% p.a. extra interest offered for senior citizensFlexible interest payout optionsavailable - Monthly, Quarterly, Half-yearly, Annually or at Maturity

New Component – INSTA FD :-

For ETB Customers (Logged-in) :

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Topic	Mandatory/ Optional	Char Limit	Content to update on page
Heading 1 Text	Mandatory	90 Char	Your consolidated deposits summary
Right CTA 1 Text	Mandatory	40 Char	View Portfolio
Right CTA Link	Mandatory		https://bajajfinserv.in/myaccountlogin?Source=Loan_FD
Main CTA Text			OPEN FD IN 3 STEPS
Main CTA Link			https://www.bajajfinserv.in/webform/Deposit/insta-landing-page
Title 1 (Rate of Interest) R1	Mandatory	17 Char	Total Amount Invested
Value		10	<API driven>
Title 2 (Min. Deposit) R1	Mandatory	17 Char	Total Interest Earned
Value		10	<API driven>
Title 3 (Min. Tenor) R1	Mandatory	17 Char	As on Date
Heading 2		10	Book a new FD Instantly
Description 2			Click to replicate a previous FD investment or initiate a new one

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R1/ R2 – rows wise distribution of table/ fields. Reach out in case of any query

Post Office FD vs. Bank FD: What's the Difference?

Both post office and bank FDs offer guaranteed interest and capital protection. But the real difference lies in the flexibility, interest rate advantages, digital convenience, and benefits for senior citizens.

Interest Rates: Who Offers More?

Post Office FDs: Government-fixed rates, currently ~7.5% for a 5-year term.

Bank FDs: Rates range from 5% to 9%, with some private banks offering higher returns.

Compare interest rates across tenures before locking in. Some bank FDs give you more room to choose what fits your target maturity.

Bajaj Finance, the biggest NBSC of India offers up to 7.30% p.a. interest rate on Fixed Deposits for senior citizens and flexible tenures starting from 12 months. Check FD Rates now!

Tax Benefits: What’s Deductible?

Both post office and bank FDs offer Section 80C tax-saving options on 5-year deposits. But:

• Only select bank FDs qualify.
• Interest earned is taxable under ‘Income from Other Sources’ in both cases.

Convenience: Online vs Offline

• Post Office FDs: Often require physical visits for deposits and renewals.
• Bank FDs: Fully digital—open, manage, renew or withdraw via app or net banking.

With Bajaj Finance, you can open your FD online in minutes—no branch visit, no paperwork. Open FD Account and get up to 7.30% p.a. returns.

Component – Fixed deposit variants

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Topic	Mandatory/ Optional	Char Limit	Content
Heading Text <H2>			Fixed deposit variants
Description text			Highest Credit Ratings | Trusted with over 1.4 million Deposits | Assured Returns on FD
Nudge 1	Mandatory		Recommended
Text 1	Mandatory		FD - Special Tenure -18 Months
Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA	Mandatory		Invest Online
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 2	Mandatory		FD - Special Tenure - 22 Months
Subheading	Mandatory		INTEREST RATES UP TO 7.10% p.a.
CTA	Mandatory		Invest Online
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 3			FD - Special Tenure - 33 Months
Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA Text	Mandatory		Open FD
CTA Link			https://www.bajajfinserv.in/investments/fixed-deposit
Text 4	Mandatory		FD - Age below 60
Subheading	Mandatory		INTEREST RATES UP TO 6.75% p.a.
CTA Text	Mandatory		Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 5	Mandatory		FD - Senior Citizen
Subheading	Mandatory		INTEREST RATES UP TO 7.30% p.a.
CTA Text	Mandatory		Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
Text 6	Mandatory		FD – Minor
Subheading	Mandatory		INTEREST RATES UP TO 6.75% p.a.
CTA Text	Mandatory		Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
XF Path			/content/experience-fragments/bajajfinserv/web/in/en/investment/deposits/fd/fd-variant/fd-variant

Minimum Investment: What’s the Entry Point?

• Post Office: Start with Rs. 1,000.
• Banks: Start with as low as Rs. 1000 or Rs. 5,000, depending on the institution.

For small, recurring savers or first-time depositors, bank FDs offer more accessibility and customisation.

Tenure Flexibility: Who Wins?

• Post Office: Only 4 fixed terms – 1, 2, 3, or 5 years.
• Banks: From 7 days to 10 years—pick short-term or long-term as per your plan.

If you are looking for even more flexibility than check out Bajaj Finance FDs. It offers tenures from 12 to 60 months. You decide the maturity period that suits your goal. Check more details now.

Benefits for Senior Citizens: Who Cares More?

• Banks: Offer 0.25%–0.50% additional interest for seniors.
• Post Office: No extra benefit on FDs. Separate schemes like SCSS apply.

For senior investors looking for monthly income or higher returns, bank FDs are a more rewarding option.

Did you know?

Senior citizens can earn up to 7.30% p.a. interest with Bajaj Finance AAA rated FDs. Open an FD account today!

Safety: Government vs Insurance

• Post Office: Sovereign guarantee from the Government of India—complete safety.
• Bank FDs: Insured by DICGC up to Rs. 5 lakh per depositor, per bank.

Both are safe, but if 100% capital protection is your top priority, post office FDs give a slight edge.

Verdict: Which FD Works Best for You?

Feature	Post Office FD	Bank FD
Interest Rate	Lower, but fixed	Higher, varies by bank