Debt investors are now actively looking for fixed deposit scheme with higher interest rates in the market as the fixed deposit interest rates are increasing. Both banks and the Department of Posts offer fixed deposits, which have several advantages and disadvantages that investors should be aware of before investing. When it comes to bank fixed deposits investors are mostly interested in SBI interest rates as SBI is the largest nationalized bank and Fortune 500 company in our country. The process of comparing interest rates and setting up an online account is undeniably necessary, as the post office fixed deposit scheme offers higher interest rates than SBI.
SBI FD Rates
on fixed deposit of less than 2 crore, SBI last revised its interest rates on 14.06.2022. After the revision, the bank is now offering interest rates ranging from 2.90% – 5.50% for general public and 3.40% – 6.30% for senior citizens. SBI is offering an interest rate of 5.50% and 6.30% to senior citizens on Tax Saving Fixed Deposits.
SBI on its website in favor of older persons states that “a special “SBI WeCare” deposit for senior citizens has been introduced in the retail TD segment with an additional premium of 30 bps (over and above the existing 50 bps as mentioned in the table above). ) ) Senior citizens will be paid on their retail TD only for the period ‘5 years and above’. “SBI Wecare” deposit scheme has been extended till 30th September, 2022.”
How to Open SBI FD Account Online?
1. Go to Retail.onlinesbi.com/retail/login.htm and click on ‘Continue to login’.
2. Now enter your username, password and click on ‘Login’.
3. Now click on ‘Deposit & Investment’ option and under the drop-down menu, select ‘Fixed Deposit’.
4. Now click on ‘Fixed Deposit (e-TDR/e-STDR)’ and then enter the OTP sent to your registered mobile number.
5. Now click on ‘Proceed’ and enter the amount you want to deposit.
6. If you are a senior citizen, then tick the category.
7. Now choose the investment type from STDR which is a cumulative option and TDR which is a non-cumulative option.
8. Select the Tenure and Maturity Instruction.
9. Accept the terms and conditions and click on ‘Submit’.
10. Verify the submitted details and click on ‘Confirm’.
11. Now you will get a success message on the screen, and your Fixed Deposit account details will be shown under Account Summary section.
Post Office FD
To open a post office fixed deposit account, the minimum amount required to be deposited is Rs 1000 and in multiples of 100 without the maximum amount. The account comes with a tenure ranging from 1 to 5 years. Section 80C of the Income Tax Act of 1961 applies to investments of less than five years, just as it is to bank fixed deposits. However, post office time deposits pay interest rates of 5.5 per cent for deposits made for one to three years and 6.7 per cent for deposits made for five years. This interest rate on post office fixed deposits, which is 6.7 per cent, is much higher than the FD rates offered by not only SBI, but also other major banks like HDFC, ICICI, Axis, BoB, PNB and others. However, one thing to note is that the post office fixed deposit scheme does not provide any such benefit for senior citizens, bank fixed deposits offer an additional rate of interest to senior citizens.
How to Open Post Office FD Account Online?
1. Visit ebanking.indiapost.gov.in and login to the DoP eBanking portal using your User ID and Password.
2. Now click on ‘General Services’ menu and then select ‘Service Request’ option.
3. Now select ‘New Requests’ from the drop-down menu, and then click on ‘TD Accounts – Open a TD Account’.
4. Now enter the deposit amount, deposit period and select your debit account.
5. Now specify your renewal and redemption instructions and click on ‘Submit Online’.
6. Under the ‘Request Confirmation’ page, verify your entered details and enter your account password to confirm the details.
7. Now you will get a successful message on the screen and an online receipt of your transaction, which you can download in PDF format.
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