Fixed deposit rate hiked! SBI's three year FD rates vs post office term deposits. Where to invest your money?

Fixed deposits are considered one of the safest investment options. Several banks including, the State Bank of India ( SBI), (BoB), (PNB), and recently hiked fixed deposit rates. On 29 December, the raised the interest rates on the three year post office term deposit (POTD) scheme by 10 basis points for the January March quarter.

Now let us compare interest rates of three year post office term deposits with SBI's three year FD rates. Three year SBI FD rates The State Bank of India (SBI) has hiked interest rates on nearly all term deposits. This interest rate is applicable on FDs below 2 crore. The bank has hiked rates by 25 bps on FDs maturing in 3 years to less than 5 years.

These deposits are now fetching 6.75%. The new rate is effective from 27 December 2023. 3 years to less than 5 years 6.75% Three year post office term deposits The government has hiked the interest rate of 3 year time deposits by 10 basis points (bps) from 7% to 7.10%. These rates are effective from 1 January 2024.

3 Year Deposit 7.1% SBI FDs between 7 days to 10 years will give 3.5% to 7% to general customers. Senior citizens will get 50 basis points (bps) extra on these deposits. Post office term deposits latest rates Post office time deposit schemes are similar to bank FDs. Post offices offer term deposits ranging from one year to five years.

With the revision, a one year term deposit with post offices will now earn 6.9 percent, and for the two years tenor 7%. Interest rates on term deposits for three years and five years are 7.1% and 7.5% respectively. These rates are with effect from 1 January 2024. 1 Year Deposit 6.9% 2 Year Deposit 7.0% 3 Year Deposit 7.1% 5 Year Deposit 7.5% 5 Year RD 6.5% Apart from the three year term deposit, interest rates on the Sukanya Samriddhi scheme were also hiked by 20 basis points for the January March quarter.

According to a finance ministry circular, the deposit under the Sukanya Samriddhi scheme would attract an interest rate of 8.2 per cent from the existing 8 per cent, Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.