In this era of the stock market and mutual funds, many people in the country still consider FD the safest and best investment option. The continuous decline in the Indian stock market for months has caused concern among common investors. In such a situation, those disappointed with the market are once again turning to bank FDs. Both government and private banks, along with the post office, are offering attractive interest rates on FDs. Today, we will find out which offers better returns on fixed deposits—the State Bank of India (SBI) or the Post Office.

State Bank of India (SBI):

State Bank of India is the largest government bank in the country. SBI offers interest rates ranging from 3.50% to 7.25% on fixed deposits (FD) to its customers. The interest rates for different tenure FDs are as follows:

  • 6.80% on a 1-year FD
  • 7.00% on a 2-year FD
  • 6.75% on a 3-year FD
  • 6.75% on a 4-year FD
  • 6.50% on a 5-year FD

Additionally, SBI provides an extra 0.50% interest to people above 60 years of age on all FD schemes.

Post Office:

Similar to banks, the post office also allows customers to open FD accounts, which are known as Time Deposits (TD). TDs can be opened for a minimum of 1 year and a maximum of 5 years. The interest rates offered by the post office are:

  • 6.9% on a 1-year TD
  • 7.0% on a 2-year TD
  • 7.1% on a 3-year TD
  • 7.5% on a 5-year TD

Unlike banks, the post office does not offer any additional interest to senior citizens. Everyone is given the same interest rate.

SBI vs Post Office FD: Best for the Middle Class?

For middle-class investors, both SBI and Post Office FDs have their advantages. SBI offers flexibility, loan options, and an extra 0.50% interest for senior citizens, making it a good choice for those who need liquidity. On the other hand, Post Office FD provides higher interest rates, especially for a 5-year term (7.5%), along with government-backed security, making it a safer long-term investment. If you prioritize higher returns and safety, the Post Office FD is a better option. However, if you need flexibility and senior benefits, SBI FD is the right choice.

Disclaimer: Times Bull will not be responsible for any financial investments made, as it is entirely your responsibility. Please consult a financial advisor for better results.