One of the most popular savings schemes amongst salaried personnel, bank fixed deposits are a low-risk, good-return investment plan. This savings instrument is a good option for surplus savings, especially for those who are looking for a long-term savings plan. Bank FDs offer fixed and guaranteed returns as compared to the high return of equity-related investments. Many leading banks in India offer fixed deposits, among which the two popular ones are those provided by the State Bank of India and the India Post Office. Here is the comparison to help you decide which one is better for you. State Bank of India (SBI): India's leading public lender, State Bank of India on May 28, 2018, revised its interest rates on retail domestic term deposits or bank FD as they are commonly known. SBI revised the rate of interest on deposit of up to Rs 1 crore according to its corporate website - sbi.co.in. SBI offers 0.50 per cent higher interest rates across tenures to senior citizens. Here are all the rate of interest on deposit of up to Rs 1 crore: Tenors Interest rate (in per cent) for public w.e.f. 28.05.2018 Interest rate for senior citizens w.e.f. 28.05.2018 7 days to 45 days 5.75 6.25 46 days to 179 days 6.25 6.75 180 days to 210 days 6.35 6.85 211 days to less than 1 year 6.4 6.9 1 year to less than 2 year 6.65 7.15 2 years to less than 3 years 6.65 7.15 3 years to less than 5 years 6.7 7.2 5 years and up to 10 years 6.75 7.25 Fixed Deposit in Post office: Post office fixed deposits have been mentioned as Post office time deposit on the India post website. To open a TD account, a subscriber needs to deposit a minimum of Rs 200 at the time of opening. Nonetheless, there is no maximum cap on the amount that can be kept in a TD account. Also, a single account can be converted into a joint account and vice-versa and is transferable. The investment under five-year TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961. The interest is payable annually but is calculated quarterly. The minimum amount for opening an account is Rs 200 while there is no maximum limit. Post Office Fixed Deposit Interest rates: \u2013 Interest rates From 1.01.2018 Period Rate 1yr.A\/c 6.6% 2yr.A\/c 6.7% 3yr.A\/c 6.9% 5yr.A\/c 7.4% Features of Post Office FD including Tax Rebate: - Account may be opened by individual and by cheque. In case of cheque , the date of realization of cheque in government account shall be date of opening of account. - Nomination facility is also available at the time of opening and also after it. - Account is transferable from one post office account to another. - In CBS Post offices, when any TD account is matured, the same TD account will be automatically renewed for the period for which the account was initially opened. Example 2 Years TD account will be automatically renewed for 2 Years. Interest rate applicable on the day of maturity will be applied - The investment under 5 Years TD qualifies for the benefit of Section 80C of the Income Tax Act, 1961 from 1.4.2007.