SBI 3-year FD vs Post Office 3-year FD: Which of 2 can grow Rs 3.50 lakh and Rs 7.50 lakh investment faster for senior citizens
SBI 3-year FD vs Post Office 3-year FD: Senior citizens use fixed deposit schemes to get regular income post retirement. They also get higher interest rates in FDs compared to what general citizens get.
SBI 3-year FD vs Post Office 3-year FD: When people grow old, their expenses may decrease. But they need some source of income to meet even the reduced expenses. However, at that age, not many of them have a regular source of income. So, they either depend on someone or on the return from their investments. Such investments can be marked-linked or non-market linked. Since most senior citizens don't want to take a risk with their money in old age, they prefer guaranteed return schemes with the least risk. Fixed deposit (FD) is one of the popular investment options for senior citizens to have regular income. While it gives them a fixed income, they can get it credited to their account every month, quarter, half year, or year. The other advantage is that they get a higher interest on FDs compared to rates that general citizens get. State Bank of India (SBI) and Post Office offer 1-year, 3-year, and 5-year FDs to investors. In this write-up, know more about 3-year FDs from both, and which of the two will provide higher returns on Rs 3.50 lakh and Rs 7.50 lakh investments in the fixed deposit schemes.
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SBI 3-year Senior Citizen FD
India's No. 1 lender offers a 7.25 per cent interest rate to senior citizens in its 3-year scheme.
Post Office 3-year FD
In the 3-year FD, the interest rate is 7.10 per cent.
SBI 3-year Senior Citizen FD: Maximum Deposit
In its Retail Domestic Term Deposit, the maximum investment limit is Rs 3 crore.
Post Office 3-year FD: Minimum and maximum investment
The minimum investment in the fixed deposit scheme is Rs 1,000, while there is no maximum investment limit.
SBI 3-year Senior Citizen FD: Interest periodicity
As per SBI's website, interest on a Term Deposit is payable to the depositor quarterly from the date of issue or at maturity along with principal. However, on request from the depositor, interest may be paid at monthly, half-yearly, or yearly intervals in case of Term Deposits fixed for a term of 12 months and above.
Post Office 3-year FD: Interest periodicity
Interest is payable annually but it is calculated quarterly.
SBI 3-year Senior Citizen FD: Maturity amount on Rs 3.50 lakh investment
The estimated interest on a Rs 3,50,000 investment will be Rs 84,191, while the estimated maturity amount will be Rs 4,34,191.
Post Office 3-year: Maturity amount on Rs 3.50 lakh investment
The estimated interest on a Rs 3.50 lakh investment in the 3-year FD will be Rs 82,276, while the estimated maturity will be Rs 4,32,276.
SBI 3-year Senior Citizen FD: Maturity amount on Rs 7.50 lakh investment
On a Rs 7.50 lakh investment in the 3-year SBI FD, the estimated interest will be Rs 1,80,410, while the estimated maturity will be Rs 9,30,410.
Post Office 3-year: Maturity amount on Rs 7.50 lakh investment
The 3-year Post Office FD will provides an estimated interest of Rs 1,76,306, and the estimated maturity amount of Rs 9,26,306 on completion.