How much interest will be found in 1 lakh? Don’t put money in the bank at the post office, check all aspects!

Fixed Deposits are the safest way to invest. This is the way to get guaranteed returns even if the interest rate is a little lower. There is almost no risk. Fixed deposits are available in almost all banks. Along with this, there is a fixed deposit facility in the post office as well. Let’s take a look at the exact benefits of having fixed deposits at the post officeโ€”

Let’s say a senior citizen deposits Rs 1,00,000 in fixed deposit with Indian Post Department for 1 year. In that case he will get interest at the rate of 6.6 percent compounded. As a result, after the expiration of the term, he will receive 1,06,803 rupees.

Post Office Interest Rate:
Any citizen will get 6.6 percent interest on fixed deposit for 11 months and 28 days.
Any citizen will get 6.8 percent interest by depositing money for a period of 1 year to 1 year 11 months 27 days.
Any citizen will get 6.9 percent interest by depositing money for 2 years to 2 years 11 months 27 days.
If you deposit money for a period of 3 years to 4 years 11 months 27 days, you will get 7 percent interest.

In this case, a few things are worth noting-
1. Any Indian citizen irrespective of age can get 6.6 to 7 percent interest by investing in post office.
2. In this case, a minimum of 1000 rupees must be deposited.
3. There is no maximum deposit limit.
4. Withdrawals are possible at any time as required, i.e. there is no ‘locking period’.
5. No chrysl rating.
6. Post office fixed deposits but no loans are available.

Interest rates of other banks compared to Post Office:
Suryodaya Small Finance Bank FD 7.25-7.75 percent
Karur Vaishya Bank FD 7-7.4 percent
Utkal Grameen Bank FD 6.25-6.75 percent
Karnataka Bank FD 5.75- 6.15 percent
State Bank of India FD 6.5-7 percent
Bank of India FD 6.5- 7.25 percent
South Indian Bank FD 6.5-7 percent
Tamil Nadu Gram Bank FD 6.9- 7.4 percent
ESAF Small Finance Bank FD 5.75-6.25 percent
Bengali Grameen Bikash Bank FD 6.25-6.75 percent

Privileges of opening FD at Post Office:
Any Indian citizen can open an FD account at any post office in his own name or jointly with any other account holder.
Here interest is paid at compounded rate quarterly or annually.
Investment in FDs or ASCs for five years provides income tax exemption under Section 80C of the Income Tax Act.

However, tax is calculated on interest on fixed deposits. However, there is an income tax exemption of up to Rs.50,000 for senior citizens.
Any adult can open account individually.
Maximum three people can open account jointly.
A single account can also be opened in the name of a minor above 10 years of age.
A minor or mentally ill person can be opened by his/her guardian.

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