SBI Fixed Deposit vs Post Office Fixed Deposit: Compare account opening procedures and interest rates

Because fixed deposit interest rates are rising, debt investors are actively looking for a fixed deposit scheme with higher interest rates in the market.

Because fixed deposit interest rates are rising, debt investors are actively looking for a fixed deposit scheme with higher interest rates in the market. Banks and the Department of Posts both offer fixed deposits, which have a number of advantages and disadvantages that investors should consider before investing. When it comes to bank fixed deposits, investors are most interested in SBI’s interest rates because SBI is our country’s largest nationalised bank and a Fortune 500 company. Given that the Post Office Fixed Deposit scheme offers higher interest rates than SBI, a comparison of interest rates and the online account opening process is unquestionably necessary.

SBI FD Rates

SBI last revised its interest rates on fixed deposits of less than 2 Cr on 14.06.2022. Following the revision, the bank now offers interest rates ranging from 2.90% to 5.50% for the general public and 3.40% to 6.30% for senior citizens. SBI is offering 5.50 percent and 6.30 percent interest rates on tax-saving fixed deposits to senior citizens.

SBI has stated on its website in support of seniors that “A special “SBI Wecare” “Deposit for Senior Citizens introduced in the Retail TD segment, in which an additional premium of 30 bps (over and above the existing 50 bps as detailed in the above table) will be paid to Senior Citizens on their retail TD for tenors of ‘5 Years and above’ only. The “SBI Wecare” deposit scheme has been extended until September 30th, 2022.”

How to open an SBI FD account online?

1. Navigate to retail.onlinesbi.com/retail/login.htm and select ‘Continue to login.’
2. Now enter your username and password and click the ‘Login’ button.
3. Now, select ‘Fixed Deposit’ from the drop-down menu under ‘Deposit & Investment’.
4. Next, select ‘Fixed Deposit (e-TDR/e-STDR)’ and enter the OTP that was sent to your registered mobile number.
5. Next, click ‘Proceed’ and enter the amount you wish to deposit.
6. Check the box if you are a senior citizen.
7. Choose an investment type from STDR, a cumulative option, or TDR, a non-cumulative option.
8. Choose the tenure and maturity training.
9. Accept the terms and conditions by clicking the ‘Submit’ button.
10. Check the submitted information and click the ‘Confirm’ button.
11. You will now see a successful message on the screen, and the details of your fixed deposit account will be displayed under the account summary section.

Post Office FD

To open a Post Office Time Deposit account, a minimum deposit of INR 1000 and deposits in multiples of 100 with no maximum amount are required. The account has a duration of one to five years. Section 80C of the Income Tax Act of 1961 applies to investments lasting less than five years, just as it does to bank fixed deposits. Post Office Time Deposit, on the other hand, pays interest rates of 5.5 percent for deposits made for one to three years and 6.7 percent for deposits made for five years. This 6.7 percent interest rate on post office fixed deposits is significantly higher than the FD rates offered by not only SBI, but also other major banks such as HDFC, ICICI, Axis, BoB, PNB, and others. One thing to keep in mind is that, while the Post Office Fixed Deposit Scheme does not provide such a benefit for senior citizens, bank fixed deposits do provide an additional rate of interest to senior citizens.

How to open a Post Office FD account online?

1. Go to ebanking.indiapost.gov.in and sign in with your user ID and password to the DoP eBanking portal.
2. Select the ‘Service Request’ option from the ‘General Services’ menu.
3. Now, from the drop-down menu, select ‘New Requests,’ and then click on ‘TD Accounts – Open a TD Account.’
4. Now enter the deposit amount, deposit duration, and debit account information.
5. Enter your renewal and redemption instructions and then click ‘Submit Online.’
6. On the ‘Request Confirmation’ page, confirm your entered details by entering your account password.
7. A successful message will appear on the screen, as well as an online receipt of your transaction, which you can download in PDF format.

Disclaimer:- Whatever information is given is for educational purposes only and all the information given is taken from the entire official website.