Are you planning to make a fixed deposit in a bank or post office? Know where you can get ₹14,000 more return on ₹2 lakh in 5 years. The complete calculation of interest rates and maturity will surprise you!
Fixed Deposit ( FD ) is a safe investment option, which comes with guaranteed returns. Indian investors often invest in bank and post office FD schemes. If you are also planning to invest in SBI FD or Post Office FD, then it is very important to know which of the two options gives better returns. Here we will understand the complete calculation of interest rates and maturity amount on FD of Rs 2 lakh.
SBI Fixed Deposit: SBI FD Schemes and Interest Rates
State Bank of India (SBI) offers attractive interest rates on its FD schemes. These rates vary depending on the investment period. Here are the details of SBI’s interest rates for different tenures:
- 7 to 45 days: 3.5%
- 46 to 179 days: 5.5%
- 180 to 210 days: 6.25%
- 211 days to less than 1 year: 6.5%
- 1 year to less than 2 years: 6.8%
- 2 years to less than 3 years: 7%
- 3 years to less than 5 years: 6.75%
- 5 years to 10 years: 6.5%
If you invest ₹2 lakh in SBI for a period of 5 years, you will get interest of Rs 76,084 at 6.5% interest rate. The total amount on maturity will be ₹2,76,084.
Post Office Time Deposit: Interest Rates and Benefits
Post Office Time Deposit (TD) scheme is similar to fixed deposit. This scheme is available for a period of 1 to 5 years. Post office FD interest rates are slightly higher than banks. Here are the post office time deposit interest rates:
- 1 year: 6.9%
- 2 years: 7.0%
- 3 years: 7.1%
- 5 years: 7.5%
If you invest ₹2 lakh in Post Office Time Deposit for 5 years, you will get interest of Rs 89,990 at 7.5% interest rate. The total amount on maturity will be ₹2,89,990.
SBI FD or Post Office FD: Where is more profit?
Comparing both the options, Post Office Time Deposit offers better returns than SBI FD for a tenure of 5 years. Understand the key differences here:
Interest Rates : The interest rate on SBI FD for a tenure of 5 years is 6.5%, while on Post Office FD it is 7.5%.
Total amount of interest : SBI gives an interest of Rs 76,084 on ₹2 lakh, while in post office it gives an interest of Rs 89,990.
Maturity Amount : The total amount in SBI is ₹2,76,084, whereas in Post Office it is ₹2,89,990.
What to choose for safe investment?
If you want safe and better returns, then post office time deposit is more profitable for a period of 5 years. However, the advantage of SBI FD is that wider access and convenience of banking services are easily available. Investors can choose any one option based on their preferences.
1. Which option is safer between SBI and Post Office FD?
Both options are equally safe, as SBI is the largest government bank in India and the post office operates government schemes.
2. What is the maximum investment limit on post office FD?
There is no maximum limit on investment in post office FD.
3. Is the interest received on post office FD taxable?
Yes, tax has to be paid on interest income received from post office FD.
4. Do senior citizens get additional interest rate?
Senior citizens get additional interest rate in SBI FD. Senior citizen schemes are available separately in the post office.
5. Can the FD be broken before its term is over?
Yes, in both the schemes, FD can be broken before maturity, but penalty charges may apply for this.
6. How is the interest of post office time deposit received?
Interest in post office FD is paid annually or on maturity.
7. Can SBI FD be opened online?
Yes, you can open SBI FD online through net banking or mobile app.
8. Does the interest rate of post office FD change from time to time?
Yes, post office FD interest rates are revised by the government on a quarterly basis.
