Post office or bank FD, where will your money be most safe? Who will take the guarantee?

Post office schemes vs Bank FD: While making savings, the first thing that comes to mind for small investors is security. They are worried about where to invest their hard-earned money so that they get bumper returns and there is no fear of losing money.

Actually, from the point of view of security, both the post office and the bank are considered very safe because the government itself guarantees its security. On top of that, returns are also guaranteed. Still, if this question comes to mind that which of the two is better? So this news is for you to understand this.

post office

Post office savings schemes like PPF, NSC, MIS have ‘Sovereign Guarantee’ of the Government of India. That means the government itself takes responsibility for your money deposited in it. It includes both principal and interest, hence it is considered 100 percent risk free.

Since it is part of the government, the question of its bankruptcy does not arise. Here whether you deposit Rs 1 lakh or Rs 1 crore, it is the responsibility of the government to return your entire money. This is best for those people who want to keep a large amount of more than Rs 5 lakh in one place without any tension.

bank FD

Be it SBI or HDFC, your money deposited in banks is protected by DICGC (Deposit Insurance and Credit Guarantee Corporation), which is a part of RBI. In this, the maximum amount up to Rs 5 lakh is completely safe and insured. This means that if tomorrow the bank goes bankrupt due to some reason, then by law you are guaranteed to get back only a maximum of Rs 5 lakh. Even if the amount in your account is more than Rs 50 lakh.

Which one is better for you?

If you want to keep a large amount of money like retirement money in a secure place, then post office is best for you. At the same time, if you have a large amount, then you can divide it into Rs 5 lakh each and deposit it in different banks. With this, your entire money will remain under the insurance coverage.

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This post office scheme leaves even bank FD behind, get Rs 20,500 every month