Time deposit or fixed deposit, know where investing will be more beneficial

Investment TipsFixed Deposit ie FD has been the most popular option of investment. The reason for this is that it gives guaranteed returns. But for some time now, the interest rates of FD have been declining continuously, due to which people are now preferring to invest money in other options. However, not all investment options are as safe as FDs. Today we will tell you about such a safe investment option in which you will get more interest than FD. Know about this scheme:-

National Savings Time Deposit Account

• The name of this scheme is National Savings Time Deposit Account.
• This is one of the many savings schemes run by the post office.
• This scheme is a type of Fixed Deposit (FD) only.
• A minimum deposit of Rs 1000 is required to open an account. There is no maximum investment limit.
• Interest rates ranging from 5 to 6.7% are available in Post Office Time Deposit Accounts for tenures ranging from 1 to 5 years.
• Under this scheme, interest is paid on an annual basis, but it is calculated on a quarterly basis.

bank FD vs National Savings Time Deposit Account Interest Rates

2 of the year FD interest on

• Post Office Time Deposit Scheme: 50%
• SBI: 10%
• HDFC: 00%
• Kotak Mahindra: 15%

3 of the year FD interest on

• Post Office Time Deposit Scheme: 50%
• SBI: 30%
• HDFC: 20%
• Kotak Mahindra: 30%

5 of the year FD interest on

• Post Office Time Deposit Scheme: 70%
• SBI: 40%
• HDFC: 40%
• Kotak Mahindra: 30%

Get the benefit of tax exemption

• Investing in Time Deposit Scheme and FD for 5 years provides the benefit of tax exemption under Section 80C of the Income Tax Act 1961.
• Under this, you can take advantage of income tax exemption on investment up to Rs 50 lakh.

(Here ABP News is not giving any investment advice in any scheme. The information given here is for informational purpose only. Consult experts before depositing money in any scheme)

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