The uncertainty about the economy in this period of Corona epidemic is not yet completely over. Even if people have money, they want to invest in a fund with safe and guaranteed returns. Fixed Deposit is one such instrument which is very popular among investors. It is clear from the name itself that you get guaranteed returns by investing in this scheme. State Bank of India is the largest bank in the country. The bank has a large customer base and because of this people are very keen on SBI FD. Similarly, Post Office has the highest reach and that is why Post Office Fixed Deposit and Post Office Term Deposit are very popular among investors.
However, after the reduction in the repo rate by the Reserve Bank of India (RBI), all major banks have reduced interest rates for almost all periods of Fixed Deposit. State Bank has also reduced the fixed deposit rate for several maturity periods.
State Bank is giving some rate of return on Fixed Deposit:
Term Interest Rate For Senior Citizens
7 days to 45 days 2.90 percent 3.40 percent
46 days to 179 days 3.90 percent 4.40 percent
180 days to 210 days 4.40 percent 4.90 percent
4.40 percent to 4.90 percent for one year from 211 days
4.90 percent 5.40 percent for one year to two years
5.10 percent 5.60 percent for two years to three years
Three years to five years 5.30 percent 5.80 percent
Five years to ten years 5.40 percent 6.20 percent
Note: This interest rate is effective for domestic investment up to Rs 2 crore.
Post Office Time Deposit or Post Office Term Deposit Scheme
This scheme of post office is similar to bank FD. Investing in a post office term deposit like a bank also gives investors a guaranteed return like a bank FD. The government fixes the interest rate for the post office term deposit before every new quarter starts. You can invest for a maturity period of one to five years for a post office time deposit.
Let us know at what rate the returns are being received at the post office term deposit at this time:
Term interest rate
5.50 percent a year
Two years 5.50 percent
Three years 5.50 percent
Five years 6.70 percent
