Post Office or SBI where is the highest interest on deposits?

SBI FD vs Post Office TD: Public sector banks have increased their FD interest rates to attract customers. Meanwhile, State Bank of India (SBI) is also offering attractive interest rates on its FDs. In this article, we will compare the interest rates and features of SBI and Post Office term deposits to help you understand which option is better for you.

SBI Fixed Deposit Interest Rates

SBI has fixed its fixed deposit interest rates for different tenures. Some of the main rates are as follows:
- 7 days to 45 days: 3.5%
- 46 days to 179 days: 5.5%
- 180 days to 210 days: 6%
- 211 days to less than 1 year: 6.25%
- 1 year to 2 years: 6.8%
- 2 years to 3 years: 7%
- 3 years to 5 years: 6.7%
- 5 years to 10 years: 6.5%

SBI also has special provisions for senior citizens. They are given 0.5% more interest. Specifically, senior citizens get interest at the rate of 7.5% on FDs of 5 to 10 years. This higher interest rate makes their investment even more profitable.

Post Office Term Deposit

Post office term deposit schemes are also safe and attractive. These schemes are available for 1 year, 2 years, 3 years, and 5 years. The interest rates offered are as follows:
- 1 year: 6.90%
- 2 years: 7.00%
- 3 years: 7.10%
- 5 years: 7.50% (maximum)
An important feature of post office term deposits is that the interest rate is the same for general customers and senior citizens. This provides equal opportunities to all investors.

SBI's Special Fixed Deposit Scheme

Apart from its regular FD, SBI has also launched some special schemes, which attract investors more. These include:
- Amrit Kalash (400 days): In this scheme, general customers get 7.1% interest and senior citizens get 7.6% interest. This scheme is best for those who want to invest for a short time.

- Amrit Vrishti (444 days): This special scheme offers 7.25% interest rate to general customers and 7.75% to senior citizens. This is also a good option, especially if you want to invest for a slightly longer period.

Which to choose?

When you decide to invest, it is essential that you keep in mind your needs, risk appetite, and future plans.

- If you are looking for maximum interest, the post office 5-year term deposit offers 7.50% interest, which is higher than other options.

- On the other hand, SBI's special FD schemes also have good interest rates, especially if you want to invest for a period of less than a year.

Your investment strategy depends on your financial situation and future requirements. Both SBI and post office are reliable and safe options. To make the right choice, you should carefully analyze the interest rates, tenure, and other features. Thus, you can make an informed decision that meets your financial goals.