Top 3 Govt Banks FDs Rates Vs Post Office FDs Rates; Where To Invest For High Interest?

Fixed deposits (FDs), especially FDs backed by the government, are frequently a key component of the investment portfolios of risk-averse investors. With safe and secure deposits, government-backed FDs provide respectable returns.

Other than Bank FDs, the Post Office Small Savings Scheme that offers FDs are also a Govt-Backed investment option. It provides fixed deposits plan with various tenures. What makes Post Office FDs and Bank FDs different is their change in Interest price. Post Office FDs Rates are decided by the Govt, while the Bank FDs rates are influenced by the change in Repo rate by the RBI.

Here we have compared the FD Rates of the top 3 Govt. Banks with the Post Office FDs.

State Bank of India (SBI) FD Rates

State Bank of India, the biggest Govt. Bank in India, offers FD interest rates between 3% to 7.10% for general citizens for amounts below Rs 2 crore, while for senior citizens, the bank offers FD Interest rates between 3.50% to 7.60% for amounts below Rs 2 Crore. The bank offers the highest interest rate on 400 days (Special Scheme i.e. " Amrit Kalash") i.e. 7.10% to general citizens and 7.60% to Senior Citizens are offered, respectively. The Interest rates compounded quarterly.

According to the bank, "The specific tenor scheme of "400 days" (Amrit Kalash) at Rate of Interest of 7.10 % w.e.f. 12- April- 2023. Senior Citizens are eligible for a rate of interest of 7.60%. The Scheme will be valid till 15-August-2023."

FD Rates For Tenure of 1 to 10 Years

Tenors	General Public FD Rates (in %)	Senior Citizens FD Rates (in %)
1 Year to less than 2 years	6.8	7.3
2 years to less than 3 years	7	7.5
3 years to less than 5 years	6.5	7
5 years and up to 10 years	6.5	7.50@
400 days (Special Scheme i.e. " Amrit Kalash")	7.1	7.6

Note - @ Including additional premium of 50 bps under "SBI We-care" deposit scheme.

Source - sbi.co.in

Bank Of Baroda (BoB) FD rates

Bank of Baroda (BoB) is the second Govt bank on the list that offers high-interest rates on FD to the general public and Senior Citizens. The Bank offers FD Interest rates ranging between 3% to 7.25% to the General public and 3.50% to 7.75% to Senior citizens for the tenure of 7 days to 10 years. The above FD interest rates are applicable on deposits amounts below Rs 2 Crore.
ON FD tenure of Above 2 Years and up to 3 years, the bank offers 7.05% interest to General Public and 7.55% to Senior Citizens. While the bank offers maximum 7.25% FD interest rates to the general public and 7.75% FD interest rates to Senior Citizens on FD for the tenure of 399 Days (Baroda Tiranga Plus Deposit Scheme).

FD Rates For Tenure of 1 to 10 Years

Tenors	General Public FD Rates	Sr. Citizen FD Rates
1 year	6.75	7.25*
Above 1 year to 400 days	6.75	7.25*
Above 400 days and upto 2 Years	6.75	7.25*
Above 2 Years and upto 3 Years	7.05	7.55*
Above 3 Years and upto 5 Years	6.5	7.15 #
Above 5 Years and upto 10 Years	6.5	7.50***
Above 10 years (MACT/MACAD Court Order schemes only)	6.25	6.75*
399 Days (Baroda Tiranga Plus Deposit Scheme)	7.25	7.75*

Note - (* incl. additional ROI 0.50%, # incl. additional ROI of 0.50+0.15, *** incl. additional ROI of 0.50%+0.50%)

Source - bankofbaroda.in

Punjab National Bank (PNB) FD Rates

Punjab National Bank (PNB) offers general citizens FD interest rates ranging between 3.5% and 7.25% to General Public and 4% and 7.75% to Senior Citizens (up to 80 Years) for tenures ranging from 7 days to 10 years on amounts below Rs 2 Crore.

The bank also offers high-interest rates on FDs to Super Senior Citizens (above age 80 years) for the same tenure that ranges between 4.30% and 8.05%. The highest interest rate of 7.25% is now provided for a tenure of 444 days.

The highest interest rate of 7.25% to the general public, 7.80% to Senior Citizens and 8.10% to Super Senior Citizens is offered on tenure of 444 days.

FD Rates For Tenure of 1 to 10 Years

Period	FD Rates For Public	FD Rates For Senior Citizens	FD Rates For Super Senior Citizens
1 Year	6.75	7.25	7.55
>1Year to 443 Days	6.8	7.3	7.6
444 Days	7.25	7.75	8.05
445 Days to 2 Years	6.8	7.3	7.6
above 2 years & upto 3 years	7	7.5	7.8
above 3 years & upto 5 years	6.5	7	7.3
above 5 years & upto 10 years	6.5	7.3	7.3

Source - PNBindia.in

Post Office FD rates

Post Office FDs are one of the most secured FDs for investments and earn good returns. Under the scheme name Post Office Time Deposit Account, the post office offers FD for 1-year, 2-year, 3-year, and 5-year tenure. Post Office FDs are backed by the Govt. Of India.

The Govt. Of India has recently hiked the interest rate on select Post office time deposits for the quarter July- September quarter 2023. Following the hike, now, the post office offers 6.9% interest on 1-year FDs, 7% on 2 and 3 years FDs and maximum 7.5% interest on 5-year FD. Investors should note that the investment under 5-year Term Deposit qualifies for the benefit of section 80C of the Income Tax Act, 1961.

Interest rates From 01.07.2023 to 30.09.2023

Period	Rate
1yr.A/c	6.90%
2yr.A/c	7.00%
3yr.A/c	7.0​%
5yr.A/c	7.50%

Source - indiapost.gov.in

According to the India Post website, "No deposit shall be withdrawn before the expiry of six months from the date of deposit. If the TD account closed after 6 months but before 1 year, the PO Savings Account Interest rate will be applicable. If a 2/3/5 year TD account prematurely closed after 1 year, interest shall be calculated at 2 per cent less than of TD interest rate (i.e. 1/2/3 years) for completed years, and for a part period less than a year, PO Savings Interest rates will be applicable."