Bank FD or Post Office Scheme, where to invest, is a profitable deal.

In today's time, people are looking for safe investments and guaranteed returns. In such a situation, two very popular options come up. First, the bank fixed deposit (FD) and second, the post office deposit scheme. Both these schemes are safe and come with the guarantee of the government or the bank, but the question is, in which of these two is it more beneficial to invest money?

The government has not made any change in the interest rates of small savings schemes for the quarter from July to September 2025. That is, the interest that was being received earlier, will still be available. In such a situation, let us know that if you are thinking of investing your money these days, then bank FD or post office scheme, where to invest is a profitable deal.

What is in Bank FD?

Recently, the Reserve Bank of India (RBI) has cut the repo rate. This has a direct impact on the FD interest rates of banks. Now banks are gradually reducing their FD interest rates, that is, if you make an FD in a bank, you will get less interest than before. At the same time, the country's largest bank SBI (State Bank of India) is now paying less interest on FD than before. It is clear from this that if you make an FD in a bank, you will get less return than before. In such a situation, it becomes important that you look at other options along with FD.

What is the Post Office Time Deposit Scheme?

The Post Office Time Deposit Scheme (POTD) is similar to bank FD. In this too, you can invest your money for 1 year, 2 years, 3 years or 5 years. Here, the interest rate on 1 to 2 year deposits is around 6.9 percent, on 3 year deposits is 7.1 percent and on 5 year deposits is 7.5 percent. The government has kept these interest rates as they are till the April-June 2025 quarter, that is, no change has been made.

Comparison of Post Office and Bank FD Interest Rates

There are some banks which are giving good interest rates like DCB Bank, RBL Bank, Yes Bank. 3 year FD is 7.5 percent per annum. Apart from this, Bandhan Bank, IndusInd Bank is around 7.25 percent, while Canara Bank has 7.2 percent, Bank of Baroda is 7.15 percent and on the other hand, HDFC, ICICI, Axis, Kotak Bank is only 6.9 percent. Government banks like SBI, PNB, Union Bank are giving 6.25 to 6.75 percent annual interest on 3 year FD, which is much lower than the post office rates.