Question: How Much Interest Does Post Office Give On FD?

How many years FD will double in post office?

10 yearsThe annual interest is credited to the investor’s savings account at his/her option.

How many years will FD double in the post office.

At the interest rate of 7%, a post office fixed deposit investment will double in 10 years and four months..

Can I double my money in 5 years?

Similarly, if you want to double your money in five years, your investments will need to grow at around 14.4% per year (72/5). If your goal is to double your invested sum in 10 years, you should invest in a manner to earn around 7% every year. Rule of 72 provides an approximate idea and assumes one time investment.

Is LIC better than FD?

Fixed deposits are best for both short and medium term investments whereas life insurance plans are designed for long term investments. You can invest for a period of as low as 7 days in fixed deposits unlike a life insurance plan wherein you need to invest for at least 10 years. You can invest a minimum amount of Rs.

Which FD scheme is best?

List of 10 best FD schemes for 3 yearsFincare Small Finance Bank. Fincare offers better rates of interest when compared to other banks in the industry. … KTDFC. … Shriram City. … Mahindra Finance. … Sundaram Finance. … LVB. … ICICI Home Finance. … Yes Bank.More items…

Is Post Office FD taxable?

e. Tax Implications Section 80C of the Income Tax Act of India, 1961, allows tax deductions on the Fixed deposit investment made within 5 years. The interest paid by the post office is subject to TDS. If no TDS is deducted, the same needs to be declared in the return of income.

What is the interest rate of FD in post office?

India Post Office FD Rates 2021TenureFD interest ratesSenior Citizen FD interest rates7 days to 1 year5.50%5.50%1 year 1 day to 2 years5.50%5.50%2 years 1 day to 3 years5.50%5.50%3 years 1 day to 5 years6.70%6.70%Nov 25, 2020

Can I get monthly interest on FD in post office?

Guaranteed returns: You earn income in the form of interest every month. The returns are not inflation-beating, but is higher compared to other fixed income investments like FD. Tax-efficiency: Though your post office investment doesn’t fall under Section 80C and the income is subject to taxation.

Which is better Post Office FD or bank FD?

For five year time deposit account, Post Office offers an interest rate of 6.7%. For an SBI FD, the tenures may vary from 7 days to 10 years, depending upon the need of investment, whether it is for short-term or long-term. SBI FD interest rates vary between 2.9% to 5.4% for general customers.

Which scheme is best in Post Office 2020?

Post Office Savings Account(SB)​​​​ … ​ National Savings Recurring Deposit Account(RD)​​ … ​ ​ National Savings Time Deposit Account(TD) … ​ National Savings Monthly Income Account(MIS) … ​ Senior Citizens Savings Scheme Account(SCSS)​ … ​​Public Provident Fund Account(PPF )​ … ​Sukanya Samriddhi Account(SSA)​

What is NSC interest rate 2020?

STORY OUTLINEInstrumentInterest rate (%) from October 1, 2020Compounding frequency5-year Senior Citizen Savings Scheme7.4Quarterly and Paid5-year Monthly Income Account6.6Monthly and Paid5-year National Savings Certificate6.8AnnuallyPublic Provident Fund7.1Annually8 more rows•Oct 27, 2020

How much money is safe in FD?

Your investment in a bank is insured under the Deposit Insurance and Credit Guarantee Corporation (DICGC) scheme, which covers your deposits up to Rs. 1 lakh for both principal and interest amount held in the same capacity and same right. So, even if the bank you have an FD in goes insolvent, your money would be safe.

Is Post Office safer than banks?

Backed by a sovereign guarantee, deposits in post office schemes are secure, and offer an alternative to banks. … Again, the insurance protection is on a per-depositor basis; that is, even if a customer holds multiple deposits in a bank, he is entitled to only ₹1 lakh as insurance cover.