For Indian investors, Fixed Deposits (FDs) remain one of the safest and most preferred investment options. Both Post Office and State Bank of India (SBI) offer FD schemes that promise guaranteed returns. However, the key question for most depositors is: Which one gives higher interest and doubles your money faster? Let’s compare the two in detail.
Post Office Fixed Deposit Scheme
The Post Office Time Deposit (TD) is considered one of the most secure FD options, backed by the Government of India. It offers multiple tenure options – 1 year, 2 years, 3 years, and 5 years. The interest is revised every quarter by the Ministry of Finance, ensuring transparency and stability for depositors.
Currently, the Post Office FD interest rate stands at 7.5% per annum for a 5-year deposit, which is the most popular option among investors seeking long-term assured returns.
SBI Fixed Deposit Scheme
Being the country’s largest public sector bank, SBI FDs are widely trusted. SBI offers flexible FD options ranging from 7 days to 10 years. The bank provides different interest rates for general customers and senior citizens.
At present, the highest interest rate on SBI FD is 7.1% per annum for select special tenures, while senior citizens enjoy up to 7.6% per annum.
Comparative Table: Post Office vs SBI FD
| Particulars | Post Office FD | SBI FD |
|---|---|---|
| Backing | Government of India | State Bank of India (PSU) |
| Minimum Deposit | ₹1,000 | ₹1,000 |
| Tenure Options | 1, 2, 3, 5 years | 7 days to 10 years |
| Maximum Interest Rate | 7.5% (5-year FD) | 7.1% (general), 7.6% (senior) |
| Risk Level | Fully secure, govt-backed | Safe, but bank governed |
| Tax Benefit | 5-year FD eligible u/s 80C | 5-year FD eligible u/s 80C |
| Money Doubling Estimate | ~9.6 years at 7.5% | ~10.1 years at 7.1% |
(Money doubling time calculated using the Rule of 72)
Which FD Doubles Money Faster?
Using the Rule of 72, the time taken to double your money can be calculated by dividing 72 by the interest rate:
- Post Office FD at 7.5% → 72 ÷ 7.5 = 9.6 years
- SBI FD at 7.1% → 72 ÷ 7.1 = 10.1 years
Clearly, Post Office FDs double money slightly faster than SBI FDs, provided the current rates remain unchanged.
Which FD Should You Choose?
- Choose Post Office FD if you want government-backed security, higher returns, and guaranteed safety of capital.
- Choose SBI FD if you prefer flexibility in tenure, better liquidity, and easy online management of deposits. Senior citizens may benefit more from SBI FDs due to the extra 0.5% interest advantage.
Conclusion
Both Post Office and SBI FDs are safe investment avenues, but if the main objective is faster money doubling and slightly higher interest, the Post Office FD currently has the edge. For those seeking banking convenience and multiple tenure choices, SBI FD remains a solid option.
