Fixed Deposits (FDs) have consistently been regarded as a secure investment avenue that offers assured returns. Many investors tend to favor FD schemes provided by banks and post offices. If you are contemplating an investment in either option and are uncertain about which one to choose, the following comparison between Post Office and SBI FDs may assist you in making an informed decision.
The State Bank of India provides interest rates that range from 3.50% to 7.25% on FDs. In contrast, post office time deposits offer interest rates between 6.9% and 7.5%.
Return on a 5-Year FD
For those looking to invest in a 5-year FD, the State Bank of India offers a return of 6.5%. Conversely, the post office provides a more attractive return of 7.5% for the same duration.
Return on a 5-Year FD in SBI
Investment amount: Rs 3,50,000
Interest rate: 6.50% per annum
Estimated return: Rs 1,33,147
Total maturity value: Rs 4,83,147
Return on a 5-Year Time Deposit in Post Office
Investment amount: Rs 3,50,000
Interest rate: 7.50% per annum
Estimated return: Rs 1,57,482
Total maturity value: Rs 5,07,482
Investing in a post office time deposit yields higher returns compared to SBI. If you allocate Rs 3.5 lakh in SBI for a duration of five years, the interest earned will amount to Rs 1,33,147 at an interest rate of 6.5 percent, resulting in a total of Rs 4,83,147 upon maturity. Conversely, if the same amount is invested in a post office time deposit for five years, the interest accrued will be Rs 1,57,482 at a rate of 7.5 percent, culminating in a total of Rs 5,07,482 at maturity.
Desclaimer: For any financial invest anywhere on your own responsibility, Times Bull will not be responsible for it.