SBI vs Post Office Fixed Deposit: Where to invest?

In the current context, investing in fixed deposits might be advantageous because interest rates have been rising since the RBI announced a raise 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 period ranging from 7 days to 10 years. Fixed deposit interest rates are not market-based, so debt investors can earn a safe return on their investment. Furthermore, deposits in 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 to plan better to pick one.

SBI FD Rates

The country’s largest lender, State Bank of India (SBI), raised interest rates on 14th June 2022 on selected tenors on deposits of less than 2 crore. SBI has raised interest rates on fixed deposits maturing in 211 days to less than 1 year from 4.40 per cent to 4.60 per cent, on deposits maturing in 1 year to less than 2 years from 5.10 per cent to 5.30 per cent, and on deposits maturing in 2 years to less than 3 years from 5.20 per cent to 5.35 per cent. In general, investors make fixed deposit investments for one to ten years, with SBI offering 4.60 per cent interest on one-year deposits, 5.30 per cent interest on two-year deposits, 5.35 per cent interest on three-year deposits, 5.45 per cent interest on five-year deposits, and 5.50 per cent interest on ten-year deposits. Senior citizens are given an additional rate of 0.50 per cent on deposits of 7 days to 5 years, but the best part of the SBI FD is that under the “SBI Wecare” Deposit scheme, senior citizens are also given an additional premium of 30 basis points over and above the existing 50 basis points on deposits of 5 years to 10 years. The “SBI Wecare” deposit scheme is in force till September 30, 2022, and SBI is now providing older residents with a 6.30 per cent interest rate on this scheme.

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SBI FD Rates 2022 (

Post Office FD

Post Office Time Deposit Account (TD) is a small savings account offered by the Department of Posts, which is administered by the Ministry of Communications of the Government of India. The risk of interest payment and deposit is nil because 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 person of unsound mind, or a minor over 10 years in his own name can all open a Post Office Time Deposit Account (TD). This account can be established for a period of one to five years, with a minimum deposit of INR 1000/- and deposits in multiples of 100 with no upper limit. On post office fixed deposits of 1 to 3 years the interest rate provided is 5.5% much higher than SBI FD, and on post office FD of 5 years the interest rate applicable is 6.7​ % which is again much higher than interest rates of SBI FD. But the point to note here is these higher interest rates are only for regular customers and on Post Office Time Deposit Account (TD) no additional interest rate benefit is provided to senior citizens, hence both non-senior citizens and senior citizens will get a higher rate of interest rate up to 6.70% on their post office FDs much higher than the interest rates of not only SBI but also other leading banks like HDFC, Axis, ICICI Bank, PNB and so on.

Post Office FD Rates

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Post Office FD Rates (

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