FD scheme

Fixed deposits are one of the most popular investment instruments available in the market right now. In the case of FDs, investors deposit money for a certain period and enjoy assured returns on their investments. The biggest USP of FDs compared to other investment plans is their safe return.

Both NBFCs and post offices enable individuals to create fixed deposit accounts. A detailed look into each of them is necessary to garner knowledge about each plan.

Post office FDs

FDs in post offices come under post office savings schemes. There are several other schemes like PPF, Kishan Vikash Patra, etc. 

Post office fixed deposits offer risk-free and reliable returns on the investment. Individuals can make an FD in any of the post offices scattered around the country.

Here are some features of an FD in the post office –
  • The low minimum amount,
  • The interest rate is revised every quarter,
  • Option to choose between any tenors of 1-5 years,
  • Individuals can exercise nomination.


NBFCs typically offer a -higher interest rate on FDs than other financial institutions. Individuals can quickly create an account online with such companies.

Here are some benefits of an FD with NBFCs –

  • A higher interest rate of up to 8.10%,
  • Easy online process,
  • Investors can also exercise nomination,
  • Some NBFCs allow individuals to deposit the amount every month,
  • Assured returns
  • Loan against FD.
Fixed deposits under post office savings schemes and NBFCs share similarities. Nevertheless, these are not similar products at all; they share several differences. 

These differences are as follows –

Interest rate: The Interest rate is one of the primary differences between these two. NBFCs offer interest rates starting from 7.5%, which can increase to 8.10%. The fixed deposit interest rate for post offices ranges from 6.6% to 7.4%. 

Apart from the primary difference, the interest rate for post office savings schemes is revised every quarter.
  • Online facility: NBFCs allow individuals to invest in fixed deposits through their online application process. Customers can invest in an FD through their payment cards (debit/credit card) and save time and the hassle of standing in a queue.
  • Monthly payment: In the case of an FD with a post office, individuals must pay the entire amount at once.
    • NBFCs, on the other hand, allow their customers to make their FD payments in monthly instalments through Systematic Deposit Plans.
  • Loan against FD: NBFCs allow investors to take a loan against fixed deposits. In emergencies, they can avail of a loan instead of liquidating their FD and suffering a loss.
    • For example, NBFCs like Bajaj Finance offer a loan of up to Rs.4 lakh against an FD. Apart from that, a loan against your FD will be approved faster than other loan applications.
    • A post office FD, on the other hand, doesn’t offer this benefit. In case of an emergency, individuals have to liquidate their fixed deposit.
  • Automatic renewal: NBFCs save their investors the hassle of renewing a fixed deposit by providing them with an auto-renewal facility. Post offices don’t allow their investors such benefits.

Last but not least, in terms of service, NBFCs are always preferable as they have helpline numbers and representatives to assist every customer in any scenario. On the other hand, post offices have a vast network but need more quality customer service, making it hard for investors to find assistance in case of any problem.

Those who don’t want to make risky investments can opt for FDs, as these are secure investment options. Comparing NBFCs against post office savings schemes will allow investors to understand where to invest for a higher return on their fixed deposits.