Bank FD or Kisan Vikas Patra, which is a better option? Know where to get more profit

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KVP vs FD: Both Bank Fixed Deposit and Post Office Small Savings Scheme Kisan Vikas Patra are generally chosen by investors as risk-free options. Kisan Vikas Patra comes with a maturity of 10 years and the government has recently increased its interest. On the other hand, banks have also increased FD interest several times in recent times. Let us know, in which you will get more interest and in which less.

Farmer Vikas Patra

Kisan Vikas Patra Yojana comes under small savings scheme. Its interest is decided on a quarterly basis. The interest rate for January to March 2023 is 7.2 percent per annum. If any investor invests on this interest, then his income will double in 10 years. Let us tell you that there is no limit on the maximum investment in this, but at least 1000 rupees can be invested. Keep in mind that tax exemption is not given on this scheme, because the Kisan Vikas Patra scheme does not come under 80C. TDS is deducted on the income towards the government. If you invest Rs 1 lakh in it and stay for 10 years, you will get Rs 2 lakh on maturity.

Continuous increase in bank FD interest rates

At the same time, in the last few months, banks have continuously increased the interest rates of their fixed deposits. However, the central government claims that the interest rates on Senior Citizen Savings Scheme, National Savings Certificate and Kisan Vikas Patra are better than fixed deposits. In the current volatile market conditions, bank fixed schemes are considered safer as their returns are not linked to market linked schemes. At the same time, in the current financial year, RBI has continuously increased the repo rate. Because of this, banks are trying to make their FD schemes attractive by increasing the interest rates. Where banks are giving annual returns ranging from 7.5 to 8 percent on fixed deposits. At the same time, Small Finance Banks (SFBs) are giving returns of up to 9.5 per cent on fixed deposits.

Know which bank is paying how much interest on FD

SBI is offering 7.5 per cent interest on 10-year FD to senior citizens. An investor can earn more than Rs 2.10 lakh in 10 years on a deposit of Rs 1 lakh. Apart from this, SBI has launched Amrit Kalash Deposit Scheme with a tenure of 400 days. Senior citizens are getting interest at the rate of 7.60 percent on investment in this scheme. You can invest in this scheme till 31 March 2023.

PNB is offering interest at the rate of 7.3 per cent on 10-year FD to its senior citizen customers. Investors can earn Rs 2.14 lakh by the end of 10 years on a deposit of Rs 1 lakh at an interest rate of 7.3 per cent in PNB.

HDFC Bank has introduced a special scheme Senior Citizen Care FD for senior citizens. In this scheme, interest will be given at the rate of 7.75 percent on the investment amount for a period of 10 years. The last date to invest in this scheme is 31 March 2023.

ICICI Bank is running a scheme called Golden Years FD for senior citizens. On investing in this scheme for 10 years, you will get interest at the rate of 7.50 percent. This interest rate is applicable on deposits of less than Rs 2 crore.

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