SBI Fixed Deposits vs Post Office Term Deposit: Fixed deposits are a good option for investors who do not want to take risk and want to earn fixed returns. Know which is better for you between SBI FD and Post Office term deposit.
Recently, SBI had increased the interest rates on some FDs by 0.50 percent, while the Post Office had also increased the term deposit rates for certain periods by 0.10 percent. Let us know further which of these two options (SBI Fixed Deposits vs Post Office Term Deposit) is better for you.
SBI FD latest rates
The interest rate for FDs maturing in seven days to 45 days was increased by 50 bps. Now investors are getting 3.50 percent interest in this. Similarly, for 46 days to 179 days, the bank increased the interest rate by 25 bps to 4.75 percent. Now the interest on fixed deposits of 180 days to 210 days has increased by 50 bps to 5.75 percent. Now interest will be 25 bps more i.e. 6 percent on tenure from 211 days to less than one year. Talking about long term, you will get the benefit of 6.75 percent interest (SBI FD Interest Rate) on FD maturing in three to five years.
| Duration | for common citizens | for senior citizens |
| 7 days to 45 days | 3.5 percent | 4 percent |
| 46 days to 179 days | 4.75 percent | 5.25 percent |
| 180 days to 210 days | 5.75 percent | 6.25 percent |
| 211 days to 1 year | 6 percent | 6.5 percent |
| 1 year to 2 years | 6.8 percent | 7.30 percent |
| 2 years to 3 years | 7 percent | 7.50 percent |
| 3 years to 5 years | 6.75 percent | 7.25 percent |
| 5 years to 10 years | 6.5 percent | 7.50 percent |
Interest rate on post office term deposits
At the same time, the new interest rate on post office three-year deposits is now 7.1 percent. Interest on deposits of other tenures, such as one year, two years and five years, is available at the rate of 6.9 percent, 7 percent and 7.5 percent respectively (Post Office Deposit Interest Rate).
Post Office Deposit (1 year) – 6.9 percent
Post Office Deposit (2 years) – 7 percent
Post Office Deposit (3 years) – 7.1 percent
Post Office Deposit (5 years) – 7.5 percent
Which of the two options is better for you?
For example, suppose you want to earn money by investing in fixed deposits for three years. If you make FD in SBI for three years, you will get 6.75 percent interest. You will get 7.1 percent interest on depositing money in the post office. If you want to make an FD in SBI for five years, you will get the benefit at the rate of 6.5 percent, whereas on deposits in the post office, you will get the interest at the rate of 7.5 percent.
In SBI, you will get the option to invest in FD for a period ranging from seven days to 10 years. But in the post office, you will get the option to invest only for one year, two years, three years or five years.
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