Post Office FD vs Bank FD

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

Features

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

1. 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.
2. There is no upper limit to the amount that can be deposited.
3. The interest that is generated will be paid on an annual basis.
4. The interest will be deposited to the savings account that the account holder has entered when the application form is submitted.

1. The different account types that can be opened are 1 year, 2 years, 3 years, and 5 years.
2. Under the 5 years scheme, tax benefits are provided under Section 80C of the Income Tax Act, 1961.
3. The deposit amount will be paid after the account expires.
4. You can extend the account at the time of maturity. However, the account can be extended for a similar duration as the initial one.
5. You can submit the application to extend the deposit when the account is being opened.

1. You must visit the Post Office and submit the application form and passbook to extend the account.
2. The interest rate that is applicable will depend on the date the account has been extended.
3. You cannot withdraw the amount before 6 months from the date the account has been opened.
4. The PO Saving Account interest rate is applicable in case the amount is withdrawn after 6 months but before 1 year.
5. You must submit the application form and the passbook at the Post Office in the case of premature withdrawal.
6. 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

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:

1. Educational institutes
2. Charitable institutes
3. Agencies, clubs, and societies
4. Hindu Undivided Family (HUF) members
5. Partnership firms
6. Minors
7. Non-Resident Indians
8. Resident individuals

Documents Required

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

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

Features

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

1. The tenure of the scheme can range between 7 days and 10 years.
2. Nominations can be added to the account.
3. Loans can be availed against the balance that is available in the account.
4. The account can be transferred among branches.
5. Attractive interest rates are offered.
6. Senior citizens may be provided an additional rate of interest.
7. Many banks provide you with an option to open an FD account online.
8. 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:

Note: The interest rates mentioned in the table are as of 25 October 2023.

HDFC Bank

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

*New rates are effective from 01 October 2023 and can change from time to time.

State Bank of India

The above-mentioned interest rates are effective from 15 February 2023. SBI can change the interest rates without prior notice.