Fixed deposit (FD) accounts offered by banks and post offices offer lucrative interest rates. The interest rates are fixed until a given maturity period. The interest rates on fixed deposits do not change and thus the customer knows at the time of applying for a fixed deposit, the returns that he/she will make on his/her FD investment. Leading banks as well as post offices offer the option of opening fixed deposit accounts. The largest lender of the country State Bank of India (SBI) also offers this option.
Given below is a comparison of interest rates on fixed deposit accounts offered by SBI and post offices
Fixed deposit interest rates of SBI
The following are the fixed deposit interest rates on deposits less than Rs. 1 crore (according to sbi.co.in):
(All figures in % per annum)
|Tenors||Existing for Public w.e.f. 28.02.2018||Revised For Public w.e.f. 28.03.2018||Existing for Senior Citizens w.e.f. 28.02.2018||Revised for Senior Citizens w.e.f. 28.03.2018|
|7 days to 45 days||5.75||5.75||6.25||6.25|
|46 days to 179 days||6.25||6.25||6.75||6.75|
|180 days to 210 days||6.35||6.35||6.85||6.85|
|211 days to less than 1 year||6.4||6.4||6.9||6.9|
|1 year to less than 2 year||6.4||6.4||6.9||6.9|
|2 years to less than 3 years||6.5||6.6||7||7.1|
|3 years to less than 5 years||6.5||6.7||7||7.2|
|5 years and up to 10 years||6.5||6.75||7||7.25|
Fixed deposit interest rates of post offices
Post office fixed deposits require a minimum investment of Rs. 200, according to India Post’s website, indiapost.gov.in. The following interest rates are with effect from January 1, 2018:
SBI also offers savings accounts, savings plus accounts, and basic savings bank deposit accounts, among others.
Post offices offer nine savings schemes, including fixed deposits. The other eight savings schemes are: savings accounts, recurring deposits, public provident funds, Sukanya Samriddhi accounts, monthly investment saving scheme, senior citizen savings scheme, national savings certificates, and Kisan Vikas Patra.