If you are considering investing in a Fixed Deposit (FD) scheme, it is important to compare the options available to make an informed decision. In this article, we will provide you with insights into the interest rates and benefits of both the State Bank of India (SBI) FD scheme and the Post Office Term Deposit (TD) scheme.
SBI FD Scheme
SBI offers FD schemes with durations ranging from 7 days to 10 years. The interest rates for general customers range from 3.00% to 6.50%. However, senior citizens enjoy higher interest rates, with rates ranging from 3.50% to 7.50%. It is worth noting that SBI’s special FD scheme, Amrit Kalash (444 days FD), offers an interest rate of 7.10% for general customers and 7.60% for senior citizens. Please note that this scheme is valid until August 15, 2023.
Post Office TD Scheme
The Post Office also offers TD schemes with durations ranging from 1 to 5 years. Here are the interest rates offered:
- 1-year TD: 6.9%
- 2-year TD: 7%
- 3-year TD: 7%
- 5-year TD: 7.5%
Both SBI and Post Office FDs with durations exceeding 5 years offer a tax rebate of up to Rs 1.50 lakh under Section 80C of the Income Tax Act.
Comparison and Conclusion
For a 5-year investment period, the Post Office TD scheme offers an attractive interest rate of 7.50% even for general individuals. However, before making a decision, investors should carefully evaluate their investment goals, risk appetite, and available options. Consulting with a financial advisor can provide valuable insights and guidance to help you make the best investment choice.
Please note: This article is for informational purposes only and should not be considered as financial advice.