Quick Answer: Which Is Best Post Office Or Bank?

Which is better post office or bank?

Tax efficiency When compared to the banks FDs, some schemes offered by the post office are seen to be more tax efficient.

For instance, what is earned from PPF is completely tax exempted.

On the other hand, all that is earned from FD is taxable.

Under Section 80C, it is possible to get tax savings for bank FDs..

What is the interest of 1 lakh in post office?

India Post Office Fixed Deposit Calculator 2020TenureRatesMaturity Amount for ₹ 1 Lakh2 years 1 day to 3 years5.50% to 5.50%₹ 1,11,561 – ₹ 1,17,8073 years 1 day to 5 years6.70% to 6.70%₹ 1,22,081 – ₹ 1,39,4077 days to 1 year5.50% to 5.50%₹ 1,00,105 – ₹ 1,05,6141 more row

Is Post Office FD safe?

However, post office term deposits are totally risk-free as they are backed by the government. Bank FDs are insured only up to R1 lakh. … If you are looking for a safe investment, bank FDs are suitable for you.

Why is the post office not a bank?

Why are Post office savings banks not treated as banks? … It has its issue department which issues notes and coins to commercial banks. Coins are manufactured in the government mint but they are put into circulation through the central bank. However, the currency issued by the central bank is its monetary liability.

What is the minimum balance in post office account?

Rs. 20A post office savings account requires a minimum balance of Rs. 20 to open the account.

Which scheme is best in post office?

InstrumentInterest rate (%) from October 1, 2020Min amt (Rs)Senior Citizen Saving Scheme7.41000Sukanya Samriddhi Account7.6250Public Provident Fund7.15005 Yr NSC-VIII Issue6.810006 more rows•Nov 6, 2020

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.

How much money can be deposit in post office?

Post Office Monthly Income Scheme Account (MIS) (iv) a minor above 10 years in his own name. (i) Account can be opened with minimum of Rs. 1000 and in multiple of Rs. 100. (ii) A maximum of Rs. 4.50 lakh can be deposited in a single account and 9 lakh in Joint account.

Which is better MIS or FD?

MIS is best suited for conservative investors, say experts. While fixed deposit has always been the preferred choice for many investors, MIS at this point is offering higher interest rate than most bank fixed deposits FDs. Lately, several banks have reduced their FD rates in tandem with RBI’s repo rate cut.

Can I double my money in 5 years?

To get your money doubled in five years, the CAGR needed will be nearly 15 per cent (more preciously 14.87 per cent). However, there is no guaranteed-return product that offers such a high rate of return and the only possible way to achieve this is by taking risk.

How can I double my money in post office?

Kisan Vikas Patra (KVP) is a Post Office Saving Scheme that gives you double the amount of your investment upon maturity.

Is it good to invest in post office?

There is no TDS on interest from post office RD. However, income is taxable in the hands of investor as per their individual tax slab. It’s one of the best investment choices for every investor who is looking for risk-free investment avenue to save some amount every month systematically.