Post Office FD vs SBI FD: Even with numerous investment choices available, a significant portion of individuals still relies on the Fixed Deposit Scheme that offers assured returns. Individuals typically have fixed deposits made at the bank.
However, this option is available at both the post office and the bank. It is referred to as Post Office Time Deposit or Post Office FD. You can open an FD at the post office for durations of 1, 2, 3, or 5 years. Similar to banks, the interest rates at the post office also differ based on the duration. Allow us to explain how much profit you will earn on a fixed deposit in SBI for various durations, and compare it to the potential profit from investing the same amount in a post office fixed deposit. Once you are aware of the interest rates, you can determine which one is advantageous for you.
Post Office FD:
you can choose terms of 1, 2, 3, or 5 years. The interest rate is identical for all groups of individuals. At present, fixed deposits for up to 1 year are earning interest at a rate of 6.90%. If you obtain an FD for two or three years, the interest you will receive is at a rate of 7.00%. In 5 years, you will receive interest at a rate of 7.50%.
SBI FD:
The minimum term FD available at SBI ranges from 7 days to 45 days. In this case, you receive 3% interest while senior citizens receive 3.50% interest. From 46 days to 179 days, the rates are 4.50% and 5.00% for senior citizens. For terms of 180 days to 210 days, the rates are 5.25% and 5.75% for senior citizens. The rate for fixed deposits over 211 days but under 1 year is 5.75%, while senior citizens receive 6.25% interest on fixed deposits.
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