Which option is better between post office time deposit and country’s largest bank State Bank of India (SBI) fixed deposit? Before investing, you must know about the interest rates.
Ever since the Reserve Bank of India has increased the repo rates, the interest rates offered by banks to their customers on deposits have also increased. This has directly benefited the customers, because they are getting more interest on their deposited money than before. People who have kept their money in Bank Fixed Deposits (FDs) for safety, are getting more benefits.
Due to the increase in the repo rate, since all the banks have increased the interest rates. Apart from banks, post office is also a better option to get good returns. Now the question comes in the mind of the customers that which option is better between the post office time deposit and the country’s largest bank State Bank of India (SBI) fixed deposit? So today we are answering your question here.
SBI FD Rates
According to a report in Live Mint, State Bank of India had changed its interest rates on deposits of less than Rs 2 crore on June 14, 2022. State Bank of India has increased from 4.40 percent to 4.60 percent for FDs maturing in 211 days to 1 year. For periods ranging from 1 year to less than 2 years, increased from 5.10 per cent to 5.30 per cent.
Similarly, for FDs made from 2 years to less than 3 years, it has been increased from 5.20 to 5.35 percent. If a person has kept a fixed deposit for 3 to 5 years, then he will get 5.35 percent interest. The interest rate will be 5.45 percent on deposits for 5 years, and 5.50 percent on deposits for 10 years.
Benefit for senior citizens Only
0.50 percent additional interest rate has been offered for senior citizens for a period of 7 days to 5 years. This is called SBI’s Wecare Deposit Scheme. One of the specialties of this scheme is that in this, an additional 0.30 percent interest is given to senior citizens on FD of 5-10 years on top of 0.50 percent more interest. This scheme will continue till 30 September 2022. For more details, you can visit the bank branch or visit the bank’s website.
Post Office Time Deposit (Post Office TD)
First of all, let us tell you that the scheme has been named as Time Deposit for the money to be kept in the post office for a fixed time. So in the post office time deposit account, you can keep FD like banks. The Department of Posts is run by the Ministry of Communications, Government of India, so there is no risk on the money kept in it.
Under this post office scheme, you can open a time deposit account for 1 to 5 years. At least 1000 rupees have to be kept in this. There is no upper limit, meaning you can deposit as much money as you want. 5.5% interest rate is given on money kept in the post office for 1 to 3 years, which is much higher than the interest rate of State Bank of India.
If you keep the money for 5 years, you will get 6.7% interest. Another feature is that everyone gets the same interest here. Meaning even if you are not a senior citizen, you will get good interest.
