SBI FD Vs Post Office TD Scheme: There was a time when it was believed that investment is only for the rich. But, with the changing times, now every section of the country has started understanding the importance of investment. Nowadays, from the post office to mutual funds, from the stock market to bank FD, many types of savings schemes are available.
But, before investing, it is important to keep in mind whether you want to invest your money in any risky option or want to stay away from market risk. Today we are going to give you information about two such investment options which are away from market risk. This option is Post Office TD Scheme and SBI Fixed Deposit. So let us tell the special things about both the schemes-
Features of SBI FD
Here are some key features of SBI FD
- The deposit period ranges from 7 days to 10 years.
- The nomination facility is available in favor of individuals only.
- Minimum deposit amount Rs. 1,000/- and thereafter in multiples of Rs. 100/-
- No maximum limit for deposit.
- TDS is applicable as per the tax rule.
SBI FD Interest Rate
The country’s largest bank State Bank of India is giving about a 5.5 % interest rate on its 5-year fixed deposit. Along with this, the bank offers a
- 2.9 % interest rate to common citizens on FDs of 7 to 45 days.
- 3.9 % on FDs of 46 to 179 days,
- 4.4 % on FDs from 180 days to 210,
- 4.4 % on FDs of 211 days to less than 1 year,
- 5.1 % on FDs of 1 to 2 years
- 5.2 % interest rate on FDs of 3 years
- 5.45 % on FD of 3 to 5 years.
- 5.5 % on FDs of 5 to 10 years.
Features of Post Office Time Deposit Scheme
We have mentioned some key features of Post Office TD below
- Anyone can open an account – single adult, joint, or guardian on behalf of a minor
- An account can be opened with a minimum of Rs. 1000 and in multiple of Rs. 100. No maximum limit for investment.
- Deposit account type for 1 year, 2 years, 3 years, 5 years.
- On maturity, the depositor may further extend the TD account for another tenure for which the account was initially opened.
Interest Rate Available on Post Office TD
On the other hand, if you invest money in the Post Office TD Scheme, then you will get a 6.7 percent interest rate. This interest rate is given for a tenure of 5 years. The post office is giving this interest rate from the year 2020.
At the same time, it offers an interest rate of 5.5 percent on term deposits with tenures ranging from 1 year to three years. In such a situation, if you are planning to invest in any scheme, then the term deposit scheme of the post office will give you more returns.
Also read-
SBI FD Vs Post Office TD Scheme: The Main Difference
FD rates are effective from September 10, 2019. After revising the rates, the bank is offering a maximum interest of 6.5 percent to the general public on FD accounts opened for deposits from one year to less than two years. There is no limit on the maximum amount in case of the post office is less than Rs 2 crore. It offers a maximum interest rate of 7.7 percent on fixed deposits of five years.
The minimum interest rate on FDs offered by SBI remains unchanged at 4.5 percent. It is offered on fixed deposits opened for a period of seven days to 45 days on retail domestic fixed deposits. which is less than Rs. 2 crores. However, in a Post Office Time Deposit Account, the minimum tenure for the deposit is one year and the minimum interest on the deposit is 6.9 percent.
SBI FD Account can be opened online through a net banking facility. If you want to open a Post Office Fixed Deposit Account, you have to visit the post office branch. Whenever the Reserve Bank of India announces a change in the repo rate, the bank FD rates in SBI are affected. On the other hand, Post Office FD Scheme is a government-backed scheme. Rates are revised on a quarterly basis.
