The advantage of bank FDs is that you can open a deposit with a flexible tenure of between 7 days and 10 years. The minimum tenure for post office fixed deposits is one year, and the maximum is 5 years. Interest rates for bank fixed deposits are set by the particular bank and vary between 2.5% and 8.4%. On the other hand, the interest rate for post office FDs is fixed by Ministry of Finance and currently ranges from 6.8% to 7.5%. Bank FDs offer the option of earning income on a monthly, quarterly, bi-annual or annual basis, whereas the Post Office enables depositors to earn an annual income or monthly income