SBI FD rates vs Post Office FDs: Where will you Get Better Returns?


For the longest time, fixed deposits have been the go-to option of investment for the Indian middle class. Despite being a low-return financial investment tool, FDs are preferred to other options because of their risk-free nature. They come with options of investing money for both short term and long term depending upon the customers’ needs and requirements. Apart from banks, FD schemes are also provided by the Post Office which in some cases offer better interest rates than leading lenders. The rates are revised quarterly depending upon the market situation and government policies.

Another preferred option of FDs for risk-averse investors is the term schemes offered by India’s largest public-sector lender, the State Bank of India (SBI). The FD offerings by SBI come with a minimum tenure of 7 days that go up to 10 years depending on the need of the investment. With the virtue of being the largest Indian bank, SBI commands great trust among customers and investors making it the first choice of FDs for many.

So how do these trusted FD scheme providers fair against each other? And which one offers better rates? We find it out here for you.

Post Office FD Interest Rate

While usually the post office FD rates are supposed to be revised every quarter, they have remained unchanged since April 1, 2020. Starting with interest offerings of 5.5 per cent for one year FD scheme, the rate of return on post office FDs goes up to 6.7 per cent.

India Post FD rate for 1 year -5.5 per cent

India Post FD rate for 2 year -5.5 per cent

India Post FD rate for 3 year -5.5 per cent

India Post FD rate for 5 year -6.7​ per cent

SBI FD Rates

The fixed deposit schemes offered by SBI come with a more flexible tenure of investment when compared to post office FD schemes. While the minimum tenure for FD with India Post is 1 year, SBI scheme tenure with minimum 7 day period. The interest rate offered by India’s largest sector lender varies between 7 days and 10 years depending on the tenure and deposit.

SBI FD Interest rate for deposits below Rs 2 crore

7 days to 45 days – 2.9 per cent

46 days to 179 days – 3.9 per cent

180 days to 210 days – 4.4 per cent

211 days to less than 1 year – 4.4 per cent

For FD investments with tenure of between 1 year and less than 2 years, the return rate is 5 per cent, and it goes marginally up to 5.1 per cent for FD with less than a 3-year lock-in period. For all FD with lock-in between 3 years and less than 5 years, the rate is 5.3 per cent and in the uppermost time slab from 5 years and up to 10 years, the rate of return is 5.4 per cent.