Small Finance Bank FD Scheme versus Postal TD: Many banks have increased the interest rates they charge on fixed deposits as a result of the Reserve Bank’s repo rate’s consistent rise over the past few months.
This includes post office time deposit schemes and small finance banks with better rates than big banks. Therefore, if you are considering investing in either scheme, we have some information regarding their interest rates and safety measures to assist you in making your decision.
Because the government backs the money that is put into the post office time deposit program, it is a safe way to invest. For a period of five years, general customers and senior citizens both receive a 7% interest rate.
Unity Small Finance Bank, on the other hand, offers ordinary citizens and senior citizens a 9% interest rate on a 1001-day FD. For a two- to three-year FD scheme, Jana Small Finance Bank offers ordinary citizens an interest rate of 8.1% and seniors 8.8%.
On a 999-day FD, Suryoday Small Finance Bank offers general citizens an interest rate of 8.51% and senior citizens an interest rate of 8.76%. For a 566-day FD, Ujjivan Small Finance Bank offers a rate of 8% to general citizens and 8.75% to senior citizens.
Keep in mind that you can only get insurance for up to Rs 5 lakh from a small finance bank when investing. Therefore, the post office time deposit program might be a better choice for you if you want to put a significant amount of money into an FD.
The post office TD program appears to have lower interest rates than small finance banks. However, due to the government’s backing, the post office scheme is a safer investment in terms of safety measures. The investor’s preference for higher returns or a safer investment is ultimately the deciding factor.
