New Delhi: After earning every person wants to save some money. And if the savings are fixed, then after the expenditure, invest a part of the savings somewhere so that some income is also received. In view of this, most people prefer Fixed Deposit. FD is also liked by people because it is considered risk free. At present, post office time deposits are also a good option for investment apart from bank fixed deposits. In this news, we are giving you information related to these two about investment.
Bank Fixed Deposit: Bank FD can be opened in any bank. Most banks also have the option of online FD account. FDs in the bank range from 7 days to a maximum of 10 years. Before opening online FD, get information about minimum and maximum amount, documents etc. from the banker. Information about bank FD rates can be obtained from their website. Different banks have different interest rates on FDs.
Post Office Time Deposit: A time deposit account can be opened in a post office with a minimum of Rs 1000. There is no limit to the maximum amount to be deposited. The post office has a choice of 1 year, 2 years, 3 years and 5 years. Now it is up to you to decide how many tenures you want to opt for.
Talking about security, the security of your deposit in the post office deposit is maximum because it is guaranteed by the government. It has the facility of both single and joint account. If the age is more than 10 years, then the account is also opened in the name of the minor and the guardian has to look after it until he is an adult. The investment made in this scheme for 5 years is eligible for tax benefit and can be exempted under Section 80C of the Income Tax Act 1961.
In terms of returns and taxation, both are equal, the difference is that bank fixed deposits are safe for a time. All money is safe in the post office. It would be right to invest in the post office in terms of investment.