Post Office Time Deposits vs Bank FD: Which is better? Know interest rates, tenure – All Details

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The central government has recently hiked the interest rates of certain small savings schemes by up to 30 bps for the July-September 2023 quarter. This includes 1 and 2 year post office time deposits, 5-year recurring deposits.

Following this hike, a comparison is being drawn between the Post Office Time deposit interest rates and the bank FDs of the same tenure.

Let’s find out which would be more beneficial for you

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Post office time deposits

For the July-September quarter, the government has hiked the interest rate of one year POTD by 10 basis points from 6.8 per cent to 6.9 per cent. Also, two-year POTD interest have been increased by 10 basis points from 6.9 per cent to 7 per cent.

SBI Fixed Deposit Rates The State Bank of India offers interest rates of 6.8 per cent on tenure of 1 year to less than 2 years for regular citizens. The bank offers 7 per cent interest on the tenure of 2 years to less than 3 years and 6.50 per cent in tenure between 3 years to less than 5 years. These rate have been effective from February 15, 2023.

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HDFC Bank FD interest rateHDFC Bank offers an interest rate of 6.60 per cent on tenure of 1 year to less than 15 months and 7.10 per cent on 15 months to less than 18 months. The bank offers 7 per cent interest on tenure ranging between 18 moths to 5 years.

ICICI Bank FD rates ICICI Bank offers an interest rate of 6.70 per cent on tenure of 1 year to less than 15 months and 7.10 per cent on 15 months to less than 2 years.

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PNB FD Rates The Punjab National Bank offers interest rate of 6.75 per cent on tenure of 1 year and 6.80 per cent on 1 year to 443 days. PNB offers 77.25 per cent tenure of 444 days.

Canara Bank FD interest ratesCanara Bank offers interest rate of 7 per cent on tenure of 1 year and 7.25 per cent on 444 days tenure. Canara bank offers 6.90 per cent of between 1 year to less than 2 years.