SBI vs Post Office Fixed Deposit: Where to invest?

In the current context, investing in fixed deposits can be beneficial as interest rates have risen since the RBI announced an increase in the repo rate. Investing in fixed deposits not only guarantees you a stable interest rate, but also helps you to plan ahead for your future goals, because term deposits have a flexible maturity from 7 days to 10 years. Fixed deposit interest rates are not market based, so debt investors can get a safe return on their investment. In addition, deposits into a fixed deposit account are insured by the DICGC up to 5 lakhs, making fixed deposits a better deal for investors with a low risk appetite. Here is the comparison in interest rates of SBI and Post Office Time Deposit, which can help you plan better to choose one.

SBI FD rates

The country’s largest lender, State Bank of India (SBI), raised interest rates on selected maturities on deposits below June 14, 2022 on June 14, 2022. 2 million. SBI has raised interest rates on fixed deposits with a maturity of 211 days to less than 1 year from 4.40 percent to 4.60 percent, on deposits with a maturity of 1 year to less than 2 years from 5.10 percent to 5 .30 percent, and on deposits maturing in 2 years to less than 3 years from 5.20 percent to 5.35 percent. Generally, investors make fixed deposit investments for one to ten years, with SBI offering 4.60 percent interest on one-year deposits, 5.30 percent interest on two-year deposits, 5.35 percent interest on three-year deposits, 5.45 percent interest on five-year deposits and 5.50 percent interest on ten-year deposits. Seniors get an extra 0.50 percent rate on deposits from 7 days to 5 years, but the best thing about the SBI FD is that under the “SBI Wecare” Deposit Scheme, seniors also get an extra 30 basis premium. points on top of the existing 50 basis points on 5 to 10 year deposits. The deposit scheme ‘SBI Wecare’ is in effect until September 30, 2022 and SBI now gives older residents an interest of 6.30 percent on this scheme.

SBI FD rates 2022

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SBI FD rates 2022 (sbi.co.in)

Post office FD

Post Office Time Deposit Account (TD) is a small savings account offered by the Department of Posts, which is operated by the Ministry of Communications of the Government of India. The risk of interest payment and deposit is nil as this post office plan is backed by the Indian government. A single adult, a joint account for up to three people, a guardian on behalf of a minor, a guardian on behalf of a mentally ill person, or a minor over the age of 10 in their own name can all open a Post Office Term Account (TD). This account can be opened for a period of one to five years, with a minimum deposit of INR 1000/- and deposits in increments of 100 with no upper limit. On 1 to 3 year post office fixed deposits, the interest rate provided is 5.5% much higher than SBI FD, and on 5 year post office FD the applicable interest rate is 6.7% which is in turn much higher than SBI FD interest rates. But the point to note here is that these higher interest rates are only for regular customers and on Post Office Time Deposit Account (TD) no additional interest benefit is provided to seniors, so both non-seniors and seniors get a higher interest rate up to 6. .70% on their post office FDs much higher than the interest rates of not only SBI but other leading banks like HDFC, Axis, ICICI Bank, PNB and so on.

Post office FD rates

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Post office FD rates (indiapost.gov.in)

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