Fixed deposit rate hiked! SBI's three-year FD rates vs post office term deposits. Where to invest your money?
SBI's three-year FD rates vs post office term deposit rates: Fixed deposits are considered one of the safest investment options. Several banks including, the State Bank of India ( SBI), Bank of Baroda (BoB), Punjab National Bank (PNB), and Union Bank of India recently hiked fixed deposit rates. On 29 December, the Modi government raised the interest rates on the three-year post office term deposit (POTD) scheme by 10 basis points for the January-March quarter.
Now let us compare interest rates of three-year post office term deposits with SBI's three-year FD rates. The State Bank of India (SBI) has hiked interest rates on nearly all term deposits. This interest rate is applicable on FDs below ₹2 crore.
The bank has hiked rates by 25 bps on FDs maturing in 3 years to less than 5 years. These deposits are now fetching 6.75%. The new rate is effective from 27 December 2023.
3 years to less than 5 years - 6.75% The government has hiked the interest rate of 3-year time deposits by 10 basis points (bps) from 7% to 7.10%. These rates are effective from 1 January 2024. 3-Year Deposit - 7.1% SBI FDs between 7 days to 10 years will give 3.5% to 7% to general customers.
Senior citizens will get 50 basis points (bps) extra on these deposits. Post office time deposit schemes are similar to bank FDs. Post offices offer term deposits ranging from one year to five years.
With the revision, a one-year term deposit with post offices will now earn 6.9 percent, and for the two years tenor -- 7%. Interest rates on term deposits for three years and five years are 7.1% and 7.5% respectively. These rates are with effect from 1 January 2024.
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