Recently, Punjab National Bank (PNB), ICICI and Axis Bank have changed the interest on fixed deposits (FD). In these banks you are getting a maximum interest of 5 to 6%. If you want more than this on FD, then it would be right to invest money in the post office time deposit scheme. Here we are telling you where you will get more benefit from investing.
Special things related to the time deposit scheme …
- One can open a fixed deposit account in the post office through cash or check.
- According to India Post, in the case of checks, the account will be considered open from the date of the receipt of the check amount in the government’s account.
- This account can also be opened in the name of a minor and in the name of two adults (joint account).
- To open an FD account in the post office, a minimum deposit of Rs 1000 is required. There is no maximum limit.
- The post office time deposit account offers an interest rate of 5.5 to 6.7% for a period ranging from 1 to 5 years.
- Under this scheme interest is paid on an annual basis, but it is calculated on a quarterly basis.
Time deposit vs banks interest rates
1 year FD interest
| Bank | Rate of interest (in%) |
| post office | 5.50 |
| Axis | 5.15 |
| PNB | 5.10 |
| ICICI | 4.90 |
Interest on 2-year FD
| Bank | Rate of interest (in%) |
| post office | 5.50 |
| Axis | 5.25 |
| PNB | 5.10 |
| ICICI | 5.00 |
Interest on 3-year FD
| Bank | Rate of interest (in%) |
| post office | 5.50 |
| Axis | 5.40 |
| PNB | 5.10 |
| ICICI | 5.15 |
5 year FD interest
| Bank | Rate of interest (in%) |
| post office | 6.70 |
| Axis | 5.75 |
| PNB | 5.25 |
| ICICI | 5.35 |
