Interest rates on SBI’s fixed deposits (FD) range from 3% to 7%, while post office time deposit (TD) schemes offer interest rates ranging from 6.9% to 7.5%.
SBI FD Vs Post Office FD: If you want to get assured returns with low risks, then Fixed Deposit (FD) can be a great option. This scheme provides investors a better option of safe investment and guaranteed returns. If you are also thinking of investing in FD scheme, the country’s largest bank, State Bank of India (SBI) offers attractive interest rates ranging from 3.50 percent to 7.50 percent on FD schemes. Let us tell you that the interest rates in this are different for general public and senior citizens. At the same time, apart from SBI, Post Office Time Deposit (POTD) scheme can also prove to be a better investment option for you. Taking POTD scheme, interest ranging from 6.9% to 7.5% is available, which is common for all.
In both FD and TD, money is invested for a fixed time and guaranteed returns are available on maturity.
Let’s know SBI Bank FD Scheme or Post Office FD Scheme, which one gives guaranteed returns on opening?
SBI FD Schemes
These schemes of SBI not only provide the option of safe investment but also guarantee attractive returns. SBI had implemented new interest rates for fixed deposit (FD) schemes of less than Rs 3 crore from June 15, 2024. These rates have been fixed according to different periods and categories of investors.
Interest Rates (General Public and Senior Citizens):
Short Term FD (7 to 45 days): 3.50% for general public and 4.00% for senior citizens.
Tenure less than 1 year (46 to 179 days): Interest rates 6.50% (General Public) and 7.00% (Senior Citizens) respectively.
2 to 3 years tenure: 7.00% interest to general public and 7.50% interest to senior citizens.
Long Term FD (5 to 10 years): 6.50% interest to general public and 7.50% interest to senior citizens.
SBI Special Schemes:
Amrit Kalash FD (400 days): 7.10% for general public and 7.60% for senior citizens.
Amrit Vrishti FD (444 days): 7.25% interest to general public and 7.75% interest to senior citizens.
Apart from this, investors can also get the benefit of tax exemption of up to ₹ 1.5 lakh on FDs of 5 years and above.
Benefits of SBI FD Scheme:
SBI’s FD scheme can be a great option for investors, which is suitable for both short term and long term. The minimum deposit period in this is 7 days and maximum 10 years. This scheme is available in all SBI branches and can be started from ₹ 1,000. There is no maximum deposit limit in this. An amount of ₹ 2 crore or more is considered a bulk deposit. This scheme gives both flexibility and security to the investors.
Post Office FD Schemes:
Post Office FD schemes are considered to be the safest and most reliable investment option as they are backed by sovereign guarantee. These schemes, like other small savings schemes, are run by the National Savings Institute, which works under the Ministry of Finance. That is why they are also called National Savings Time Deposits.
Interest rates on Post Office FDs range from 6.90% to 7.50% per annum. These interest rates are applicable for FDs ranging from 1 year to 5 years. The special thing is that an interest rate of 7.50% per annum is being offered for general citizens on tax saving FDs.
Post Office Fixed Deposit (FD) Interest Rates (1 January 2025 to 31 March 2025)
1 year tenure: 6.90% per annum
2 year tenure: 7.00% per annum
3 year tenure: 7.10% per annum
5 year tenure (including tax saving FD): 7.50% per annum
Features of Post Office FD Scheme
Post Office FD is a safe and reliable investment option, as it is guaranteed by the government. Your money is completely safe by investing in it. The interest rates of Post Office FD are revised every three months, which gives investors the benefit of returns according to the current market conditions. This scheme is suitable for those who want to grow their money without any risk.
This account can be opened for a period of 1 year, 2 years, 3 years or 5 years. The minimum deposit amount in it is ₹ 1,000 and after that deposits can be made in multiples of ₹ 100. There is no maximum limit of investment. The interest on the deposit will be paid on an annual basis. If the interest remains in the account and is not withdrawn, then no extra interest will be given on it. An application can be given to transfer the annual interest to the savings account.
Investing in a 5-year FD provides tax benefits under Section 80C of the Income Tax Act, 1961. The deposit amount matures on completion of 1 year, 2 years, 3 years or 5 years from the date of opening the account. This scheme is a good option for safe investment as well as tax saving.
SBI FD vs Post Office FD Calculator: Know how much return you will get on Rs 5 lakh
SBI FD Scheme Calculator
If you open an FD of Rs 5,00,000 in State Bank of India (SBI), then according to the interest rate of 6.5 percent in 5 years, your total return will be Rs 1,90,210. That is, after 5 years your total amount will increase to Rs 6,90,210.
At the same time, if a senior citizen opens an FD of Rs 5,00,000, then according to the annual interest rate of 7.5% in 5 years, the total return will be Rs 2,24,974. Thus, after 5 years the total amount will be ₹ 7,24,974.
Post Office FD Scheme Calculator
If you invest ₹5,00,000 in the Post Office FD scheme and this scheme is for 5 years at an annual interest rate of 7.5%, then you will get interest of ₹2,24,974 after 5 years. In this way, your total amount will be ₹7,24,974. This post office scheme is a great option for safe investment, where your money grows with guaranteed returns.
Note- SBI’s Amrit Vrishti scheme is effective from 15 July 2024 and will be valid till 31 March 2025. At the same time, the 400-day Amrit Kalash scheme is effective from 15 July 2024 and will be valid till 31 March 2025.
