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If an investor wants to invest in a 5-year FD, State Bank of India will give a return of 6.5 per cent, whereas the post office gives a return of 7.5 per cent for this period
State Bank of India offers interest rates ranging from 3.50 per cent to 7.25 per cent on FDs.(Representative/Shutterstock)
Fixed Deposits (FDs) have always been a safe investment option with guaranteed returns. Common investors prefer to invest in FD schemes offered by banks and post offices. If you are considering investing in one of them and are unsure which is better, here is a comparison between Post Office and SBI FDs to help you decide.
State Bank of India offers interest rates ranging from 3.50 per cent to 7.25 per cent on FDs. On the other hand, customers are given interest ranging from 6.9 per cent to 7.5 per cent on post office time deposits.
Return On A 5-year FD
If an investor wants to invest in a 5-year FD, State Bank of India will give a return of 6.5 per cent. Whereas the post office gives a return of 7.5 per cent for this period.
Return On A 5-year FD in SBI
Amount invested: Rs 3,50,000
Interest rate: 6.50 per cent per annum
Estimated return: Rs 1,33,147
Total value on maturity: Rs 4,83,147
eturn On A 5-year Time Deposit In Post Office
Amount invested: Rs 3,50,000
Interest rate: 7.50 per cent per annum
Estimated return: Rs 1,57,482
Total value on maturity: Rs 5,07,482
Post office Offers More Profit Than SBI
If you invest Rs 3.5 lakh in SBI for five years, you will get interest of Rs 1,33,147 at a rate of 6.5 per cent. Thus, you will receive a total of Rs 4,83,147 on maturity. If you invest Rs 3.5 lakh in a post office time deposit for five years, you will get interest of Rs 1,57,482 at a rate of 7.5 per cent. Thus, you will receive a total of Rs 5,07,482 on maturity.
