New FD Rates: SBI vs Post Office fixed deposit interest rates compared. Where to invest?

A fixed deposit (FD) promises to offer a reliable, consistent, long-term return on investments. This financial tool allows you to deposit a lump sum of money for a fixed period, earning interest on the amount.

FDs provide higher interest rates than savings accounts, making them an attractive option for conservative investors.

Both banks and post offices offer fixed deposit facilities.

SBI fixed deposits

India's biggest bank, the State Bank of India (SBI), offers varying fixed deposit (FD) interest rates based on the duration of the deposit. SBI provides FD facilities in the range of 6.5 per cent to 7 per cent for a fixed deposit tenure between 1 and 5 years. A term deposit of one year will provide 6.8 per cent interest, 7 per cent for a two-year term deposit, and 6.75 per cent interest for term deposits of three and four years. A term deposit of five years will get 6.5 per cent interest.

Post office fixed deposit

India Post offers a fixed deposit facility, also called the Post Office Time Deposit Accounts (TD). The Government of India backs these accounts. They are often considered a safe investment option among investors. For the period of January to March 2025, post offices will offer fixed deposits in the range of 6.7 per cent to 7.1 per cent.

“The rate of interest on various Small Savings Schemes for the fourth quarter of FY 2024-25, starting from January 1, 2025, and ending on March 31, 2025, shall remain unchanged from those notified for the third quarter (October 1, 2024 to December 31, 2024) of FY 2024-25,” according to a Department of Economic Affairs, Finance Ministry statement on December 31, 2024.

A one-year term deposit will provide 6.9 per cent interest, 7 per cent for a two-year term deposit, and 7.1 per cent for a three-year term deposit. A five-year term deposit will get 6.7 percent interest.

Compare the latest FD rates here: