At 7.5%, 5-year post office time deposit (POTD) offers higher interest rate than major bank FDs; should you go for it?
Published by Economic Times
Abhishek Kumar's role: Quoted
Abhishek Kumar, founder of SahajMoney, pointed out that senior citizens get no extra interest on five-year post office time deposits, unlike bank FDs, where most banks add 0.5 percentage point for seniors.
More of Abhishek's views on saving and deposits
This August 2023 article compares the 5-year post office time deposit, which paid 7.5% for the July–September 2023 quarter, with five-year FDs at major banks at the time. It covers who can open each, investment limits, premature closure rules, the Section 80C deduction and TDS, and government backing of post office deposits against the ₹5 lakh deposit insurance on bank FDs. It includes comments from Abhishek Kumar.
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At 7.5%, 5-year post office time deposit (POTD) offers higher interest rate than major bank FDs; should you go for it?