Post office Fixed Deposit VS Post office RD Account
What is Post Office Fixed Deposit??
Fixed Deposit Account is a kind of investment, where the money is deposited for a particular period of time (tenor) &the bank/financial institution pays interest on the money deposited.
What is Post Office RecurringDeposit??
RDs are offered by banks where a fixed particular amount is deposited on monthly basis and he bank/financial institution pays interest on the money deposited.
Quick Comparison between Fixed Deposit VS Recurring Deposit Account
Fixed Deposit
Recurring Deposit
Rate of interest is fixed. Generally it is rate varies from 6.96% to 8%
Rate is fixed. It varies from 5.25% to 7.90% per year
The money you deposit is fixed and you get interest on that particular amount
A particular amount is deposited monthly for a particular period of time
The tenor period is always fixed
The tenor period is fixed
Tax exemption is available for FDs under the section 80 of income tax
Income tax will not be deducted for interest earned up to INR 10,000
Loan against the Account Available
Loan against the Account Not Available
Post Office Fixed Deposit Benefits
• Post office FD can be opened by cash, Cheque both. Nomination facility is available. • A post office FD Account can be transferred from one post office to another without any hassle. • More than one FD accounts can be opened in any post office • The post office also provides the facility to open Joint account by two individuals.
• A post office single account can be converted into Joint and a joint account can be converted to a single one. • The accounts on the name of a minor can be converted on their name when they become adult. • FD Accounts can be opened for minors as well.
Post Office Recurring Deposit Benefits
• A post office recurring deposit account can be opened by cash, Cheque both. • Nomination facility is available. • RD can be transferred from one post office to another. • Even one can open more than one accounts in any post office. • The account can be opened in the name of minor also • Joint account can also be opened by two people. • A rebate is offered on the advance deposit of at least 6 installments
• A Single RD account can be converted into Joint and a joint account can also be converted to a single one. • Withdrawal is allowed but only up to 50% that too after one year. • The accounts on the name of a minor can be converted on their name when they become adult. • Deposits can be made up to the 15th day of next month if an account is opened up to 15th of a calendar month.
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