SBI FD Vs Post Office FD: Where You Can Get Maximum Benefits On Investments?

In the last couple of days, since the Reserve Bank (RBI) hiked the interest rate by 40 bps, a number of banks revised their Fixed Deposit (FD) interest rate as well as other interest rates. FD is considered to be the best option to save in today's time for fixed income investment. In FD, along with good interest, you will also get a guarantee of money. Today, continuing the FD interest rate hike, the country's largest lender State Bank of India (SBI) has also hiked interest rates on their FDs of Rs 2 Crore and above.

Looking at hikes in Bank FDs interest rates, Post Office is also a good option to park money in FDs for good returns. Fixed Deposit schemes offered by post offices are comparable to those offered by banks. Investors in post office term deposits, like bank FDs, obtain a guaranteed return throughout the period of the investment.

SBI bulk term deposits rates for retail customers (below 2 Crore)

According to the official website of the bank, the bank revised its interest rate on FD below 2 Crore for retail customers in February 2022. The interest rates are as follows w.e.f 15 February 20222:

Tenors	Interest Rates For Public w.e.f. 15.02.2022	Interest Rates for Senior Citizens w.e.f. 15.02.2022
7 days to 45 days	2.9	3.4
46 days to 179 days	3.9	4.4
180 days to 210 days	4.4	4.9
211 days to less than 1 year	4.4	4.9
1 year to less than 2 year	5.1	5.6
2 years to less than 3 years	5.2	5.7
3 years to less than 5 years	5.45	5.95
5 years and up to 10 years	5.5	6.3

Source- sbi.co.in

Post Office Time Deposit

As mentioned earlier, Post Office FDs are similar to bank FDs and offer good fixed returns according to the tenure and interest rates. Term deposits are available at post offices for one to five years.

Period	Interest Rate
1yr deposit	5.50%
2yr. deposit	5.50%
3yr. deposit	5.5​%
5yr. deposit	6.7​ %

Source- Post Office office Website

Please Note-
(i) Account can be opened with a minimum of Rs. 1000 and in multiple of Rs. 100. No maximum limit for investment.
(ii) The investment under 5 year TD qualifies for the benefit of section 80C of the Income Tax Act, 1961.

Bottom Line

In India, fixed deposits have long considered the safest investment option for both older residents and the middle class. You may invest in both short and long-term term deposits using these term deposits. You can use either depending on your needs. Bank and post office FDs are nearly identical. However, there are several qualities that distinguish the two. You should choose FD based on your investment tenure and that fulfils all your requirements.