• Post Office FD vs Bank FD

    Fixed Deposits (FDs) are a popular investment option in India. Most banks offer FDs at attractive interest rates with a tenure ranging between 7 days and 10 years. Banks and Post Offices offer FDs at attractive interest rates. The FD scheme offered by India Post is known as National Savings Time Deposit Account.

    Some of the main features and differences of the FD account offered by banks when compared to Post Office are mentioned below:

    National Savings Time Deposit Account

    Eligibility

    The eligibility criteria that must be met in order to open a National Savings Time Deposit Account are mentioned below:

    • Minors who are older than 10 years can open an account in their name.
    • A guardian can open an account on behalf of an individual who is of unsound mind.
    • A guardian can open an account on behalf of a minor.
    • Joint accounts can be opened.
    • A single account can be opened.

    Features

    The main features of the National Savings Time Deposit Account are mentioned below:

    • The minimum amount that must be deposited to open an account is Rs.1,000. Post the initial deposit, multiples of Rs.100 can be made.
    • There is no upper limit to the amount that can be deposited.
    • The interest that is generated will be paid on an annual basis.
    • The interest will be deposited to the savings account that the account holder has entered when the application form is submitted.
    • The different account types that can be opened are 1 year, 2 years, 3 years, and 5 years.
    • Under the 5 years scheme, tax benefits are provided under Section 80C of the Income Tax Act, 1961.
    • The deposit amount will be paid after the account expires.
    • You can extend the account at the time of maturity. However, the account can be extended for a similar duration as the initial one.
    • You can submit the application to extend the deposit when the account is being opened.
    • You must visit the Post Office and submit the application form and passbook to extend the account.
    • The interest rate that is applicable will depend on the date the account has been extended.
    • You cannot withdraw the amount before 6 months from the date the account has been opened.
    • The PO Saving Account interest rate is applicable in case the amount is withdrawn after 6 months but before 1 year.
    • You must submit the application form and the passbook at the Post Office in the case of premature withdrawal.
    • You can transfer or pledge the TD account as security. The acceptance letter and the passbook must be submitted in order to pledge or transfer the account.

    Interest Rates

    Tenure Interest Rate (p.a.)
    1 Year 5.5%
    2 Years 5.5%
    3 Years 5.5%
    5 Years 6.7%

    Bank FD

    Almost all banks in India offer FDs at attractive interest rates. Depending on the bank, the interest rates and tenure will vary. However, most banks offer FDs with a tenure ranging between 7 days and 10 years. Senior citizens may be offered an additional interest rate as well.

    Eligibility Criteria

    The eligibility criteria that must be met to open an FD account at most banks are mentioned below:

    • Educational institutes
    • Charitable institutes
    • Agencies, clubs, and societies
    • Hindu Undivided Family (HUF) members
    • Partnership firms
    • Minors
    • Non-Resident Indians
    • Resident individuals

    Documents Required

    The list of documents that must be submitted in order to open an FD account at banks are mentioned below:

    • Passport-size photographs
    • Bank details
    • In the case of minors and senior citizens, proof of age must be submitted.
    • Proof of address
    • Proof of identity

    Features

    Some of the main features of an FD account offered by most banks are mentioned below:

    • The tenure of the scheme can range between 7 days and 10 years.
    • Nominations can be added to the account.
    • Loans can be availed against the balance that is available in the account.
    • The account can be transferred among branches.
    • Attractive interest rates are offered.
    • Senior citizens may be provided an additional rate of interest.
    • Many banks provide you with an option to open an FD account online.
    • TDS is applicable

    Interest Rates

    The interest rates offered by some of the banks are mentioned in the tables below:

    Kotak Mahindra Bank

    The rates of interest offered by Kotak Mahindra Bank on term deposits below Rs.2 crore are as follows:

    Tenure Interest Rate (p.a.)
    7 to 14 Days 2.50%
    15 to 30 Days 2.50%
    31 to 45 Days 2.75%
    46 to 90 Days 2.75%
    91 das to 120 Days 3.25%
    121 to 179 days 3.25%
    180 Days 4.40%
    181 Days to 269 Days 4.40%
    270 Days 4.40%
    271 Days to 363 Days 4.40%
    364 Days 4.40%
    365 Days to 389 Days 4.50%
    390 Days (12 months 25 days) 4.90%
    391 Days - Less than 23 Months 4.90%
    23 Months 5.00%
    23 months 1 Day- less than 2 years 5.00%
    2 years- less than 3 years 5.00%
    3 years and above but less than 4 years 5.10%
    4 years and above but less than 5 years 5.25%
    5 years and above up to and inclusive of 10 years 5.30%

    Note: The interest rates mentioned in the table are as of 25 March 2021.

    Kotak Mahindra Bank FD Rates (Above Rs.2 crore)

    Listed in the table below are the interest rates offered by Kotak Mahindra Bank on term deposits above Rs.2 crore but less than Rs.10 crore.

    Tenure Rs.2 crore and above but less than Rs.5 core Rs.5 crore and above but less than Rs.10 core
    7 to 14 Days 2.50% 2.50%
    15 to 30 Days 2.50% 2.75%
    31 to 45 Days 2.75% 3.00%
    46 to 60 Days 3.00% 3.00%
    61 to 90 Days 3.00% 3.00%
    91 to 120 Days 3.00% 3.25%
    121 to 179 Days 3.00% 3.40%
    180 Days 3.75% 3.75%
    181 Days to 270 Days 3.75% 3.75%
    271 Days to 279 Days 2.90% 2.75%
    280 Days to Less than 12 Months 3.80% 3.75%
    12 months - less than 15 months 4.00% 4.00%
    15 months - less than 18 months 4.25% 4.00%
    18 months - less than 2 Years 4.50% 4.25%
    2 years and above but less than 3 years 4.75% 4.25%
    3 years and above but less than 4 years 5.00% 4.50%
    4 years and above but less than 5 years 5.00% 4.50%
    5 years and up to 7 years 5.00% 4.50%

    Note: The interest rates mentioned in the table are as of 25 March 2021.

    HDFC Bank

    Below are the Domestic/NRO/NRE Term Deposits interest rates below Rs.2 crore

    Tenure Interest Rate for General Public (p.a.)
    7 days to 14 days 2.50%
    15 days to 29 days 2.50%
    30 days to 45 days 3.00%
    46 days to 60 days 3.00%
    61 days to 90 days 3.00%
    91 days to 6 months 3.50%
    6 months 1 day to 9 months 4.40%
    9 months 1 day to less than 1 year 4.40%
    1 year 4.90%
    1 year 1 day to 2 years 4.90%
    2 years 1 day to 3 years 5.15%
    3 years 1 day to 5 years 5.30%
    5 years 1 day to 10 years 5.50%

    *New rates are effective from 13 November 2020 and can change from time to time.

    Given below are the Domestic/NRO/NRE Term Deposits interest rates for senior citizens for deposits of less than Rs.2 crore

    Tenure Interest Rate for Senior Citizens (p.a.)
    7 days to 14 days 3.00%
    15 days to 29 days 3.00%
    30 days to 45 days 3.50%
    46 days to 60 days 3.50%
    61 days to 90 days 3.50%
    91 days to 6 months 4.00%
    6 months 1 day to 9 months 4.90%
    9 months 1 day to less than 1 year 4.90%
    1 year 5.40%
    1 year 1 day to 2 years 5.40%
    2 years 1 day to 3 years 5.65%
    3 years 1 day to 5 years 5.80%
    5 years 1 day to 10 years 6.25%

    *New rates are effective from 13 November 2020 and can change from time to time.

    State Bank of India

    Tenure Interest Rates for General Public
    7 days – 45 days 2.90%
    46 days - 179 days 3.90%
    180 days – 210 days 4.40%
    211 days – Less than 1 year 4.40%
    1 year – Less than 2 years 5.00%
    2 years – Less than 3 years 5.10%
    3 years – Less than 5 years 5.30%
    5 years – Up to 10 years 5.40%

    New rates are effective from 8 January 2021 and can change from time to time.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.