Bank Fixed Deposit or Post Office KVP, which is the better option? Know where to get more profit

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KVP Vs Bank FD: At present, many investment options have become available for the people. Some people choose investment option in government schemes and some are investing money in bank FD. Two such risk-free options are Bank Fixed Deposit and Post Office Kisan Vikas Patra Yojana (Post Office Kisan Vikas Patra).

Kisan Vikas Patra comes with a maturity of 10 years and the government has recently increased its interest. On the other hand, banks like SBI, HDFC and PNB have increased the interest of FD several times and are paying much higher interest than before. Here is a comparison of both the options at maturity of 10 years. Let us know in which you will get more interest and in which less.

Kisan Vikas Patra

This scheme comes under small savings scheme and its interest is decided on a quarterly basis. The interest rate for January to March 2023 is 7.2 percent per annum. If you invest on this interest, your income will double in 10 years. There is no limit on the maximum investment in this, but at least one thousand rupees can be invested.

Tax on Kisan Vikas Patra

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.

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Who is paying how much interest on fixed deposit

On maturity of 10 years, SBI FD is paying 6.8 percent interest, HDFC Bank 7 percent annual interest and Punjab National Bank 6.5 percent interest and talking about TDS charge on this, 10 to 20 percent tax will be applicable.

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