Bank FD vs Post Office – In today’s time, people are looking for safe investments and guaranteed returns. In such a situation, two very popular options come up. First is bank’s fixed deposit (FD) and second is post office deposit scheme. Both these schemes are safe and come with the guarantee of the government or the bank, but the question is in which of these two is it more beneficial to invest money.
The government has not made any change in the interest rates of small savings schemes for the quarter from July to September 2025. That is, the interest that was being received earlier, will still be available. In such a situation, let us know that if you are thinking of investing your money these days, then where is it profitable to invest, bank FD or post office scheme.
What is in Bank FD?
Recently, the Reserve Bank of India (RBI) has cut the repo rate. This has had a direct impact on the FD interest rates of banks. Now banks are gradually reducing their FD interest rates, that is, if you make an FD in a bank, you will get less interest than before. At the same time, the country’s largest bank SBI (State Bank of India) is now paying less interest on FD than before. It is clear from this that if you make an FD in a bank, you will get less return than before. In such a situation, it becomes important that you also look at other options along with FD.
What is the Post Office Time Deposit Scheme?
Post Office Time Deposit Scheme (POTD) is similar to bank FD. In this too, you can invest your money for 1 year, 2 years, 3 years or 5 years. Here the interest rate is around 6.9 percent on 1 to 2 year deposits, 7.1 percent on 3 year deposits and 7.5 percent on 5 year deposits. The government has kept these interest rates unchanged till the quarter of April-June 2025, that is, no change has been made.
Post Office and Bank FD Interest Rates Comparison
There are some banks which are giving good interest rates like DCB Bank, RBL Bank, Yes Bank. 3 year FD is 7.5 percent per annum. Apart from this, Bandhan Bank, Indusind Bank are around 7.25 percent, while Canara Bank is 7.2 percent, Bank of Baroda is 7.15 percent and on the other hand, HDFC, ICICI, Axis, Kotak Bank are only 6.9 percent. Government banks like SBI, PNB, Union Bank are giving 6.25 to 6.75 percent annual interest on 3 year FD, which is much lower than the post office rates.