With the recent increase in RBI rates, banks are offering higher fixed deposit rates to attract new depositors. Post Office Time Deposits are also considered a safe option for FDs. However, banks have increased their deposit rates, and the rates have surged from an average of 5% to over 7%.

Post Office Time Deposits see a quarterly revision of rates, and they have become competitive again with the government’s back-to-back increases in interest rates on small savings schemes. The return on Post Office Time Deposits of two years is 6.9%, which is the same as offered by most banks on deposits of similar maturity. The rate on POTD of three years has increased to 7% from 5.5%.

1 year -6.8%

2 year-6.9%

3 year- 7.0​%

5 year- 7.5 %

State Bank of India (SBI) is the largest bank in India, and they offer fixed deposit rates between 7 days to 10 years. SBI’s interest rate on deposit of one year to less than two years is 6.8%, and on deposit of two years to less than three years, it is 7%. Senior citizens will get an additional 50 basis points (bps) on these deposits.
These rates are effective from 15 February 2023.

7 days to 45 days – 3%

46 days to 179 days – 4.5%

180 days to 210 days – 5.25%

211 days to less than 1 year – 5.75%

1 year to less than 2 years – 6.8%

400 Days (AMRIT KALASH)-7.10%

2 years to less than 3 years – 7.00%

3 years to less than 5 years – 6.5%

5 years and up to 10 years – 6.5%

Both Post Office Time Deposits and SBI Fixed Deposits are safe investment options, but investors should consider the interest rates and the lock-in period before making a decision.