Bank FDs vs Post Office Fixed Deposits: Which One Should Investors Opt For?

People have begun investing their money in fixed deposits as a result of the recent stock market turbulence. Banks have been raising the interest rates received on their fixed deposit programmes since May 2022. Even post offices provide term deposit options that are very similar to bank fixed deposits.

How are time deposits at the post office different from FDs at banks? Which one ought investors select? Here's a detailed comparison.

If you have fixed deposits in the post office, you will get 6.8 percent interest for 1-year FD, 6.9 percent for 2-year FD, 7 percent for 3-year FD, and 7.5 percent for five years FD.

If you opt for banks to park your money, lenders like SBI, HDFC, and ICICI offer 3 percent to 7.1 percent to regular investors and 50 bps to senior citizens

The maturity period of the bank's fixed deposits ranges from 7 days to 10 years. On the other side, Post office FDs mature in 1 year, 2 years, 3 years, and 5 years.

Coming to tax benefits, both investment options offer redemption of tax up to 1.5 lakh rupees.