Post Office FD and Bank FD have a lot of similarities. But before you write them off as the same, be aware that there are notable differences. The interest rates of Bank FDs are controlled by a particular issuing bank. Compared to this, Post Office FDs have interest rates that are decided when each quarter begins.   The duration for Bank FDs can be as small as four days or as long as ten years. Compared to this, a person can avail POFDs for 1, 2, 3, or 5 years.  If a person chooses to open a POFD, he/she must do it at a post office or a bank physically. There is no provision for any online service. However, the person can create online Bank FDs.   POFDs enjoy more security than Bank FDs since the former has the support of the government.