A fixed deposit or a term deposit has been a popular investment option for those who avoid risky investments and opt for a secure alternative for decent returns. However, while SBI fixed deposit rates remain static, post office time deposits are becoming more flattering. These options provide a competitive interest rate and added tax benefits, which makes them suitable for conservative investors.
SBI Fixed Deposit Interest Rates
Fixed deposit schemes in the State Bank of India (SBI) include the revised interest rate of 3% to 7.1% for general customers. Whereas, senior citizens are further cushioned by an additional 50 basis points on these rates. For the tenure of one year to less than two years of the deposit, SBI pays an interest rate of 6.8%. For a two-year to less than three-year tenure, the interest rate rises to 7 %. These rates have been effective from 15 February 2023.
Tenure
Interest Rate (%)
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%
3 years to less than 5 years
6.5%
5 years to 10 years
6.5%
400 days (Special Scheme: “Amrit Kalash”)
7.1%
Post Office Time Deposit Interest Rates
Post office time deposits are another familiar investment tool as bank FDs. The current change in rates makes these schemes even more appealing. For a one-year deposit, the interest rate is now 6.9%, and for two years, it is 7%. The rates for three-year and five-year tenures are 7% and 7.5%, respectively. These rates came into force on the 1st of July 2023.
1 year – 6.9%
2 years – 7%
3 years – 7%
5 years – 7.5%
Further, the deposits having a locked maturity of five years carry tax exemptions up to ₹1.5 lakh for investments made under section 80C of the Income Tax Act of 1961. This makes the post office time deposits an even more attractive investment instrument for investors who are in search of returns coupled with tax incentives.
Conclusion
Although fixed deposits are conservative in nature investments like post office time deposits are relatively more attractive now because of a better rate of return. These choices may be of considerable interest to investors who seek better returns but are cautious about risk-taking.
Here is the comparison of the SBI and Post Office FD rates to find the best low-risk investment for stable returns. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
