While comparing the rate of interest offered by the State Bank of India fixed deposits for a term of five times and post office term deposit for the same term, the difference comes around 1.3.
SBI FIXED DEPOSIT VS POST OFFICE DEPOSIT :
On one hand, where SBI fixed deposit rates are 5.4, the other hand, post office term deposits offer an interest rate of 6.7 when the investment is made for five times. In fact, from 01st April 2020, the new interest rates for post office term deposits have come into picture wherein for one time, two- times, and three times fixed deposits are 5.5 whereas, for fixed deposits of five times, the rate of interest is 6.7.
So, for illustration, if we invest Rs. 1 Lakh for five times in State Bank of India Fixed Deposit account and the same amount for the same term in Post Office Term Deposit, also SBI Fixed Deposit will give Rs. 64, 362 as interest, and the final amount will be Rs. 1, 64, 362.
Whereas in the Post Office Term deposit, this capitalist will moneybags. 2,00,016 in five times. This fluently shows that capitalist will be doubled in post office term deposit in comparison to fixed deposits of SBI.
Therefore, despite being the same as bank fixed deposits, post office term deposits give guaranteed returns.
WE ARE PROVIDING A COMPARISON OF SBI FIXED DEPOSIT SCHEME AND POST OFFICER TERM DEPOSITS :
. For fixed deposits of State Bank of India, the term can vary from seven days to 10 times according to the demand of the investment, whether it’s for a short term of seven days or long term of 10 times. Still, the term deposit schemes of Post Office are for one time, two, three, or five times.
. An SBI Fixed Deposit account can easily be opened online by using the installation of net banking. still, for opening a term deposit account with Post Office, one has to visit a branch of the post office.
. The interest rate of SBI Fixed Deposit ranges between 2.90 to 5.40 for the general public. Post Office Fixed Deposit interest rates range from 5.50 to 6.70.
. The USP of term deposit schemes offered by Post Office is that it’s a government scheme and its interest rates are revised every quarter. still, in the case of State Bank of India fixed deposits, there is no rule like this. The fixed deposit rates of banks get affected by the repo rate of the Reserve Bank of India.
. Account portability is allowed in both SBI Fixed Deposit accounts and Post Office Term Deposit schemes.
Indeed though both SBI and Post Office are government- backed up schemes, where your capitalist is safe, but after seeing the rate of interest and final amount upon completion of the maturity period Post Office Term Deposits are recommended. In addition to this, the Post Office also offers multitudinous other investment schemes like National Savings Certificate, Senior Citizens Savings Scheme, Kisan Vikas Patra, Public Provident Fund, Monthly Income Scheme,etc.
Nearly all these schemes offer an interest rate that is further than seven percent and in addition to this, the rate of interest in these schemes is revised every quarter. So, it’s over to the investor what he she selects as deciding according to his/ her conditions is always suggested.
FAQs
Ques 1. Which is swish post office RD or bank RD?
Ans- The return on post office time deposits of two times is the same as offered by utmost top banks, including the State Bank of India( SBI) on deposits of similar maturity. piecemeal from the banks, Post Office Time Deposits are also considered a safe option for FDs.
Ques 2. Is post office RD salutary?
Ans- Post Office Account RD helps small investors by allowing them to invest as little as Rs. 100 per month and above minimum any amount in multiples of Rs. 10. There is no upper limit for the investment. common accounts can also be opened by two adult individualities. The account can also be opened in the name of a minor.
Ques 3. What is the interest rate of RD in SBI and post office?
Ans- Post office( RD)-6.50( interest rate), 5 times( term) SBI-6.50( interest rate), 3 times to 5 times( term).
Ques 4. Which is swish post office or SBI?
Ans- also’s a comparison of Post office time deposits and SBI fixed deposit interest rates.
