Is FD Tax Free In Post Office?

Which is better Post Office FD or bank FD?

Five-year post office deposit is offering 6.7 per cent whereas SBI’s five-year FD is offering 5.40 per cent.

The effective interest rate for senior citizen bank FDs is as follows: SBI one-year FD is 5.40 per cent, HDFC Bank one-year FD is 5.60 per cent and ICICI Bank one-year FD is 5.50 per cent..

What is the interest of 1 lakh in post office?

India Post Office FDs have tenures ranging from 3 years 1 day to 5 years with maximum rate of interest of 6.70%….India Post Office Fixed Deposit Calculator 2020.TenureRatesMaturity Amount for ₹ 1 Lakh3 years 1 day to 5 years6.70% to 6.70%₹ 1,22,081 – ₹ 1,39,4073 more rows•Nov 25, 2020

Can I double my money in 5 years?

Similarly, if you want to double your money in five years, your investments will need to grow at around 14.4% per year (72/5). If your goal is to double your invested sum in 10 years, you should invest in a manner to earn around 7% every year. Rule of 72 provides an approximate idea and assumes one time investment.

Is 5 year FD tax free?

Tax Benefit: You can get a tax deduction under Section 80C of up to Rs. 1.5 lakh when you make an investment on a tax-saver FD scheme with a minimum lock-in period of five years.

What is the FD rate in post office?

Post Office FD Interest RateTenure (years)Post Office FD Interest RatesBajaj Finance FD Interest Rates1 year5.5%6.35%2 year5.5%6.55%3 year5.5%6.85%5 year5.7%6.85%

How many years FD will double in post office?

10 yearsThe annual interest is credited to the investor’s savings account at his/her option. How many years will FD double in the post office? At the interest rate of 7%, a post office fixed deposit investment will double in 10 years and four months.

Is post office safe for FD?

Government-backed schemes like post office saving schemes and bank fixed deposits are safe and they also offer assured returns. However, the trouble with them is that they offer only modest returns. Often the post-tax returns fail to beat inflation. When that happens over a long period, your money loses its value.

Can I get monthly interest on FD in post office?

Guaranteed returns: You earn income in the form of interest every month. The returns are not inflation-beating, but is higher compared to other fixed income investments like FD. Tax-efficiency: Though your post office investment doesn’t fall under Section 80C and the income is subject to taxation.

Which scheme is best in Post Office 2020?

Post Office Savings Account(SB)​​​​ … ​ National Savings Recurring Deposit Account(RD)​​ … ​ ​ National Savings Time Deposit Account(TD) … ​ National Savings Monthly Income Account(MIS) … ​ Senior Citizens Savings Scheme Account(SCSS)​ … ​​Public Provident Fund Account(PPF )​ … ​Sukanya Samriddhi Account(SSA)​

Which FD scheme is best?

List of 10 best FD schemes for 3 yearsFincare Small Finance Bank. Fincare offers better rates of interest when compared to other banks in the industry. … KTDFC. … Shriram City. … Mahindra Finance. … Sundaram Finance. … LVB. … ICICI Home Finance. … Yes Bank.More items…

Is Post Office safer than bank?

Backed by a sovereign guarantee, deposits in post office schemes are secure, and offer an alternative to banks. … In the backdrop of this crisis of confidence, post office savings schemes emerge as a safer option, with the assurance of zero risk to deposits, note experts.