Term Deposits (TD) or Fixed Deposits (FD), no matter what name you call them by, these fixed-income instruments have inspired trust and confidence among generations of Indians. All investors who are risk-averse, especially people with a limited amount to protect such as retirees, regularly invest a substantial part of their corpus in these instruments and use the interest generated to meet their regular expenditure.
Let’s see what are the returns that are obtained from FDs in SBI and TDs in post offices.
SBI divides its FDs into eight tenure baskets – 7 days to 45 days, 46 days to 179 days, 180 days to 210 days, 211 days to less than 1 year, 1 Year to less than 2 years, 2 years to less than 3 years, 3 years to less than 5 years, 5 years and up to 10 years.
SBI tenure baskets, interest rates
The rate of interest SBI offers on these tenures varies from tenure to tenure. The interest rates SBI pays are – 7 days to 45 days (3.5% general customers), 46 days to 179 days (5.5%), 180 days to 210 days (6%), 211 days to less than 1 year (6.25%), 1 Year to less than 2 years (6.8%), 2 years to less than 3 years (7%), 3 years to less than 5 years (6.7%), 5 years and up to 10 years (6.5%). Senior citizens will be paid 0.5 percentage points more. Only the longest tenure of 5 years and up to 10 years offers 7.5% for senior citizens.
Post office TDs
On the other hand, post office TDs are available for tenures of 1 year, 2 years, 3 years and 5 years. The interest rates paid in these FDs are 6.90% for 1 year, 7.00% for 2 years, 7.10% for 3 years and 7.50% for 5 years, which is the peak rate. The point to note is that post office TDs bear the same rate of interest for both general customers and senior citizens.
SBI fixed tenure FDs
However, SBI has FDs of fixed tenure besides the above. The 400-day FD branded as Amrit Kalash bears 7.1% for general citizens and 7.6% for senior citizens. Also, Amrit Vrishti of 444 days carries an interest rate of 7.25% for general customers and 7.75% for senior citizens. The Amrit Kalash FD will be available only till September 30, 2024.
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