SBI FD Rates VS Post Office FD Rates: Which is Profitable for You?

Fixed deposits have traditionally been the go-to investment option for the Indian middle class. FDs are preferred above other options due to their risk-free nature, despite being a low-return financial investment tool. They offer options for investing money in both the short and long term, based on the needs and requirements of the customers. 

Apart from banks, the Post Office offers FD schemes that, in certain situations, give higher interest rates than leading lenders. Rates are revised quarterly based on market circumstances and government policies. 

The term schemes offered by India's largest public-sector lender, the State Bank of India (SBI), are another preferred option of FDs for risk-averse investors.

SBI's FD offerings include a minimum tenure of 7 days and a maximum tenure of 10 years, depending on the demand of the investment. SBI commands great trust among consumers and investors as the largest Indian bank, making it the first choice of FDs for many. 

So, how do these renowned FD scheme providers stack up against one another? And which one offers better rates? We find it out here for you. 

Post Office FD Interest Rate 

While post office FD rates are usually revised quarterly, they have remained unchanged since April 1, 2020. Starting with interest offerings of 5.5 per cent for one year FD scheme, the rate of return on post office FDs goes up to 6.7 per cent. 

India Post FD rate for 1 year -5.5 per cent 

India Post FD rate for 2 year -5.5 per cent 

India Post FD rate for 3 year -5.5 per cent 

India Post FD rate for 5 year -6.7​ per cent 

SBI Fixed Deposit Rates 

When compared to post office FD schemes, SBI's fixed deposit schemes have more flexible investment tenure. While the minimum term for FD with India Post is 1 year, the minimum tenure for an SBI scheme is 7 days. The interest rate offered by India's largest sector lender varies from 7 days to 10 years, depending on the tenure and deposit. 

SBI Fixed Deposit Interest Rate for Deposits under Rs.2 Crore 

• 7 days to 45 days - 2.9 per cent

• 46 days to 179 days - 3.9 per cent

• 180 days to 210 days - 4.4 per cent

• 211 days to less than 1 year - 4.4 per cent

The return rate on FD investments with tenure of 1 year to less than 2 years is 5%, with a marginal increase to 5.1% for FD with a lock-in period of less than 3 years. The rate of return for all FDs with a lock-in period of 3 years to less than 5 years is 5.3 percent, while the rate of return for all FDs with a lock-in period of 5 years to 10 years is 5.4 percent.