SBI FD vs Post Office time deposit: Fixed deposits are considered one of the safest investment options. However, currently, when SBI fixed deposit rates and fixed deposit rates of other banks are stagnant, small saving schemes like post office term deposits are lucrative investment schemes for investors who have a low-risk appetite.
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SBI fixed deposit latest interest rates
SBI FDs between 7 days to 10 years will give 3% to 7.1% to general customers. Senior citizens will get 50 basis points (bps) extra on these deposits. The interest rate offered by India’s largest lender State Bank of India on deposits of one year to less than two years is 6.8%. SBI’s interest rate on deposits of two years to less than three years is 7%. These rates are effective from 15 February 2023.
7 days to 45 days – 3%
46 days to 179 days – 4.5%
180 days to 210 days – 5.25%
211 days to less than 1 year – 5.75%
1 year to less than 2 years – 6.8%
2 years to less than 3 years – 7.00%
3 years to less than 5 years – 6.5%
5 years and up to 10 years – 6.5%
400 days (Special Scheme i.e. “ Amrit Kalash”) 7.10
Post Office time deposit latest interest rates
Post office time deposit schemes are similar to bank FDs. Post offices offer term deposits ranging from one year to five years. With the revision, a one-year term deposit with post offices will now earn 6.9 percent, and for the two years tenor — 7%. Interest rates on term deposits for three years and five years are 7% and 7.5% respectively. These rates are with effect from 1 July
Post Office Time Deposit (1 year)- 6.9%
Post Office Time Deposit (2 years)- 7%
Post Office Time Deposit (3 years)-7%
Post Office Time Deposit (5 years)-7.5%
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The depositors can also claim income tax exemptions worth Rs. 1.5 lakh under Section 80C of the Income Tax Act, 1961. However, these exemptions are available only for the lock-in period of five years.
The government has raised interest rates on select saving schemes by up to 0.3% for the July-September quarter.
