Check interest rates and tax benefits of Post Office schemes

As a wise investor, you might be eyeing post office schemes as it allows you to get a tax exemption of up to Rs. 1,50,000. Post office schemes such as NSC, PPF, SCSS, etc., are the small saving schemes that ensure that your investments grow at a decent rate without any risks.

The post office interest rate is also high enough to help you earn sufficient interest till maturity. However, only the 5-year postal FD offers a high interest rate of 6.7% whereas the 3,2, and 1-year postal FDs offer an interest rate of only 5.5%.

SCSS, PPF, and other small saving postal schemes provide a higher interest rate but they come with some restrictions that can make your investments less accessible and flexible than regular fixed deposit schemes offered by banks and finance companies. For instance, SCSS does not allow you to invest more than Rs. 15,00,000, provides a fixed tenor of 4 years and allows you to extend the tenure only once and that also by 3 more years only. On the other hand, PPF does not come with flexible withdrawal options and is more suited for your long-term investment plans.

If you are interested in investing in an instrument that provides the flexibility of fixed deposits and higher interest rates as offered by post office schemes, you should deposit your savings in Bajaj Finance FD. The FD interest rate of up to 6.75% offered by this FD scheme enables you to earn enough interest till maturity and it is one of the best fixed deposit rates in India currently. The other reasons for investing in a Bajaj Finance FD are explained below:

Multi-deposit feature

It is wise to split your savings and invest the amounts in different FDs because it allows you to benefit from higher liquidity options. Also, you can balance the varying FD rates across different tenor and FD plans through this method which is also referred to as laddering deposits.

Bajaj Finance FD lets you ladder deposits seamlessly through its multi-deposit feature. With this feature, you can divide your corpus into smaller amounts and invest them for different lock-in periods for getting the benefit of higher liquidity. This feature also lets you invest in different fixed deposit types simultaneously so that you can meet your short-term fund requirements and long-term financial goals together.

Higher FD rates to senior citizens

If your age is above 60, you will get a 0.25% higher FD rate than others on investing in Bajaj Finance FD. You don’t have to get upset if your age is below 60 as you can opt for its online method of investment and get a 0.10% higher interest rate.

Bajaj Finance not only provides an online FD form but also lets you complete document verification and pay the deposit amount online. You don’t have to deposit a huge amount to benefit from this FD scheme as you can invest only Rs. 25,000 to initiate your investment plans with FDs.

Flexible investment options

With Bajaj Finance FD, you get a choice of choosing a tenor as per your financial plans. You can select any tenor between 12 to 60 months as its tenor range is flexible. Also, as credit ratings agencies have recognized Bajaj Finance FD as a safe investment option, you need not be perplexed while investing your savings in it.

Post office schemes are preferred as they provide tax benefits and a higher growth rate for your investment. However, these small savings schemes are not as flexible and easy to access as a regular fixed deposit plan. Though postal FDs plans come with a high post office interest rate, only the interest rate that is applicable on the 5-year FD plan is high enough to provide sufficient interest earnings. Instead, you can consolidate your earnings in Bajaj Finance FD that lets you grow your deposits at high interest rates of up to 6.75%. Its flexible tenor, multi-deposit facility, and other user-friendly features and options make it a lucrative FD scheme in 2021.

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