In such a situation, if you are thinking of investing in the bank’s factors, then before that, many banks like State Bank of India (SBI), HDFC Bank, ICICI Bank and Punjab National Bank (PNB) should compare government small savings schemes with fixed deposits. Because in many government serving schemes, there is more realism than these banks. Let us tell you about 5 such small saving schemes, which are much better than the rates of fixed deposits of top banks.
If you want to invest your money only for 5 years, then you can avail skims like Term Deposit, National Savings Certificate (NSC) and Post Office Time Deposit (POTD). Post Office Time Deposit (POTD) (5 years) provides an interest rate of 7.5% for all citizens, while NSC is offering a slightly higher rate of 7.7%. The SCSS is giving an interest rate of 8.2% for the senior cytization.
At the same time, the State Bank of India (SBI) gives 6.3% interest rate for general depositors and 6.8% for senior citizens on a 5 -year term deposit. HDFC bank gives 6.4% for ordinary citizens and 6.9% for senior citizens, while ICICI bank gives a slight rates, which are 6.6% and 7.1%. At the same time, PNB gives 6.5% interest rate for ordinary citizens and 7% for senior citizens.
Post office plans are supported by the Government of India. Due to this government support, these accounts are particularly attractive for those who want to earn a definite interest while keeping their principal safe.
On the other hand, bank fixed deposits (FDs) are also considered safe investment, but they have a limit to safety. Most bank deposits are covered under insurance and Credit Guarantee Corporation (DICG). However, bank depositors should keep in mind that your amount is insured up to Rs 5 lakh (including interest). The amount of more than this limit may or may not be returned when the bank fails.
