SBI FD vs Post Office Fixed Deposits: Which One Should You Choose?

Here is the comparison of interest rate, tax benefits, maturity period, premature withdrawal charges, and many more of SBI FD and Post Office fixed deposits.

A term deposit with the State Bank of India may last anywhere between seven days and ten years. Postal service programmes are only available for 1, 2, 3, and 5 years.

The State Bank of India gives returns on retail deposits under Rs 2 crore that range from 3 to 7 percent to the general investors. Senior citizens receive a 0.5 percent higher interest rate. The bank's unique Amrit Kalash programme allows for dividends as high as 7.6 percent for senior citizens.

Interest rates for term deposits at the post office range from 6.8 to 7.5 percent. Every year, the interest is compounded. Senior citizens are not eligible for a discounted rate.

Customers can receive tax advantages from SBI and post offices as per the Income Tax Act.

No FD may be withdrawn from the post office prior to six months after the date of the deposit. The post office savings account interest rate will apply to the FD if the deposit is closed before the year but after six months.

SBI customers have to pay a fine if they want to withdraw prematurely.