INSUBCONTINENT EXCLUSIVE:
Fixed deposit interest rates vary according to the tenor of a fixed deposit.Fixed deposits (FDs), also known as term deposits, are secure
investment instruments offered by banks, non-banking financial companies and post offices
In a fixed deposit, money can be invested for a higher rate of interest than savings accounts
One can deposit a lump sum of money in fixed deposits for a specific period and avail of features like guaranteed returns, choice of
interest payout, liquidity through overdraft (OD) or premature withdrawal
Fixed deposit interest rates vary according to the tenor of a fixed deposit
comparison of fixed deposits (FDs) offered by SBI and post office:State Bank of India (SBI):The minimum amount that one requires to open a
fixed deposit with SBI is Rs 1,000
However, there is no limit on maximum deposit, said the country's largest lender on it's official portal- sbi.co.in
SBI offers maturity period ranging from seven days to 10 years for fixed deposits.Premature withdrawal facility is available with SBI's FD
The interest shall be 0.50 per cent or 1 per cent below the rate applicable at the time of deposits for the period deposit remained with the
bank or 0.50 per cent or 1 per cent below the contracted rate, whichever is lower
However, no interest will be paid on deposits which remain for a period of less than 7 days, noted SBI.The following FD interest rates are
applicable on deposits below Rs
citizen7 days to 45 days5.756.2546 days to 179 days6.256.75180 days to 210 days6.356.85211 days to less than 1 year6.46.91 year to less than
Office Time Deposit (TD) or Fixed Deposit (FD) accountPost office time deposit (TD) or Fixed Deposit (FD) account can be opened by cash or
The minimum amount that one requires to open a fixed deposit with the post office is Rs
Just like SBI, there is no maximum limit available
Interest is payable annually but is calculated quarterly
are applicable on deposits according to India Post's official website -
indiapost.gov.in:PeriodRate1yr.A/c6.90%2yr.A/c7.0%3yr.A/c7.20%5yr.A/c7.8%The investment under 5 years fixed deposit qualifies for the
benefit of Section 80C of the Income Tax Act.
