New Delhi: The Post Office 5-year fixed deposit (FD) scheme offers a 7.5 per cent interest rate, which is higher than the interest rate offered by most PSU banks for a similar tenure. To be sure, the senior citizen interest rate offered on 5-year tax saver FDs is competitive with Post Office 5-year FD rates.
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Post Office 5-year FD rate vs bank FD rates
Post Office 5 year FD interest rate
The Post Office’s 5-year FD scheme offers a 7.5 per cent rate of return for both general and senior citizens. Investments in this scheme qualify for tax exemptions up to Rs 1.50 lakh per annum under Section 80C of the Income Tax Act, 1961.
Axis Bank 5-year FD interest rate
Axis Bank’s 5-year FD interest rate for general citizens is currently 7 per cent. Axis Bank offers a 7.75 per cent interest rate to senior citizens on 5-year FDs.
The private bank currently gives a higher rate to depositors of 60 years of age and above on 5-year tax saver FDs in comparison with Post Office 5-year time deposits.
SBI, HDFC Bank, ICICI Bank 5-year tax saver FD interest rate
HDFC Bank’s 5-year FD interest rate is currently 7 per cent for general citizens and 7.50 per cent for senior citizens. And, ICICI Bank and State Bank of India’s 5-year tax-saver FDs offer a similar rate of return for both general citizens and senior citizens.
Bank of Baroda 5-year FD interest rate
The Bank of Baroda’s tax saver FD interest rate for general citizens is currently 6.5 per cent and 7.15 per cent for senior citizens. The government-owned lender gives a 0.65 per cent higher rate than the applicable rate on 5-year tax-saver FDs to depositors aged 60 years and above. BoB’s rate of interest on this FD is lower than that of the Post Office’s 5-year FDs for both general and senior citizens.
Institution
General interest rate (in %)
Senior Citizens’ interest rate (in %)
Post Office
7.5
7.5
SBI
7
7.5
Bank of Baroda
6.5
7.15
HDFC Bank
7
7.5
ICICI Bank
7
7.5
Axis Bank
7
7.75
Although, Axis Bank’s 5 year FD’s interest rate of 7.75 per cent for senior citizens is more than Post Office’s 5 year FD’s interest rate. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
