Fixed Deposit- FD is considered a safe and fixed return investment option. However, in recent times FDs have lost their appeal due to low interest rates. Due to Coronavirus, most banks have cut the interest rates on FD. Despite this, people invest in FDs for two reasons. The first is low risk and the second is assured returns. Another advantage of FD is that you can withdraw your money if needed.
Apart from banks, you can also get a fixed deposit in the post office, which is called post office time deposit. But the difference between the two is that you can get FDs in banks ranging from a minimum of 7 days to 28 days to FDs maturing in 10 days. At the same time, time deposit in post office has to be done for a minimum of 1 year and a maximum of 5 years. The post office revises the interest rates received on the time deposit every third month and changes it. Today it is known that post office is giving more interest on FD or State Bank of India (SBI), the country’s largest bank, gives more interest on fixed deposits.
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SBI pays so much interest on FD
The new rates on FD of the State Bank of India (SBI) came into effect from 8 January. According to this, the bank is giving 2.9% interest to customers on FD maturing in 7 days to 45 days. At the same time, interest is getting 3.9% on FDs maturing in 46 to 179 days, 4.4% on FDs maturing in 180 to 210 days, and 4.4% on FDs maturing within 211 days. 5% interest on FDs maturing between 1 year to 2 years, 5.10% on FDs between 2 years to 3 years and 5.30% interest on mid-term FDs from 3 years to 5 years. At the same time, 5.40% interest is being given on long term FD of 5 years to 10 years. The bank gives 50 basis points more interest on all FDs to senior citizens.
Get so much interest on post office time deposit
The time deposit at the post office is also like a bank FD. In this, you can deposit money from 1 year to 5 years. The interest rates offered by the post office on time deposit are effective from January 1, 2021. The post office pays 5.5% interest to depositors on time deposits of 1 year duration. At the same time, investors get 5.5% interest only on the deposit period of 2 years and 3 years. But depositors get 6.7% interest on investing in a post office time deposit for 5 years. If you are going to get FD for a period of 1 year to 5 years, then you will get more interest in the time deposit of the post office.