SBI Vs HDFC Bank Vs ICICI Bank Vs Post Office FD: How to earn more money | EXPLAINED
SBI Vs HDFC Bank Vs ICICI Bank Vs Post Office FD: Here is how investors can earn more money.
SBI Vs HDFC Bank Vs ICICI Bank Vs Post Office FD: Here is how investors can earn more money. The Ministry of Finance has left the small saving schemes interest rate unchanged for the January to March 2021 quarter. So, for those investors who have plans to invest in a fixed deposit scheme, post office FD can be the better option as it gives 6.7 per cent interest if the FD investment period is 5 years. if we compare the State Bank of India (SBI), HDFC Bank FD interest rate and ICICI Bank FD interest rate with post office FD interest rate for the same period, investors will be able to earn around 1.4 per cent more interest. Apart from this, the investment experts are of the opinion that in post office FD, investors' money safer.
Compared to FD interest rate offered by the post office, SBI is offering 5.3 per cent return on FD for 5 years while HDFC Bank FD interest rate is also 5.3 per cent for the same period while the ICICI Bank is giving 5.35 per cent on FD investments for the period of 5 years.
However, investment experts are of the opinion that post office Bank FD is a hundred per cent secure, while in the case of bank FD, investors' money only up to Rs 5 lakh is secured. In the case of bank default, one will lose money beyond Rs 5 lakh.
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Comparing Post Office FD and bank FD, Balwant Jain, a Mumbai-based tax and investment expert said, "In the case of bank deposits, one's money up to Rs 5 lakh is secured. however, in the case of bank default, the depositor will have to lose money beyond Rs 5 lakh. From the security point of view, post office FD is better than bank FD but people prefer bank FD as their service is much better than the post office."
Speaking on the advantages of post office FD, Jitendra Solanki, a New Delhi-based tax and investment expert said, "For small investors, fixed deposits for the period of three and five years is quite popular. For such investors, the security of the money is an important factor and at the same time, they are getting around 1.4 per cent more annual return too. So, it is advisable for such investors to opt for post office FD against SBBI, HDFC Bank, ICICI Bank, or any other bank fixed deposit."
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