Like FD in post office, term deposit scheme is bank. The post office offers the option of investment for deposits of period ranging from one year to five years.
If you come in those investors who give only slightly lower returns but prefer safety, then Fixed Deposit (FD) is the right option for you. This is a good option especially for senior citizens. Many banks, including the country’s largest bank SBI, have reduced the interest rates on FD significantly. In such a situation, many people are now turning to the post office. Interest rates on these deposits were last updated on April 1 in the post office amid coronavirus epidemic.
Post Office Time Deposit or Post Office Term Deposit Scheme
Like FD in post office, term deposit scheme is bank. The post office offers the option of investment for deposits of period ranging from one year to five years. Like bank FDs, investors earn guaranteed returns through post office term deposits. The last interest on post office deposits was revised on 1 April 2020. For one year to three years, the post office gets a return of 5.5% on the amount deposited. For a five-year time deposit account, the post office returns at an interest rate of 6.7 percent.
How to apply for e-PAN Card: PAN card holders can get digital version of this
Interest rate on post office time deposit from 1 April 2020
For 1 year – 5.5% for
2 years – 5.5% for
3 years – 5.5% for
5 years – 6.7%
SBI Fixed Deposit (FD)
For FDs in SBI, the investment period may vary from 7 days to 10 years, depending on the investment requirement, whether it is for short periods or long periods of time. SBI FD interest rates vary from 2.9% to 5.4% for general customers.
SBI’s new FD interest rates applicable from September 10 (for less than Rs 2 crore)
7 days to 45 days – 2.9%
46 days to 179 days – 3.9%
180 days to 210 days – 4.4%
211 days to less than 1 year – 4.4% less than
1 year to 2 years – 4.9%
to less than 2 years to 3 years – 5.1%
from 3 years to less than 5 years – 5.3% to
5 years and up to 10 years – 5.4%.
