Want to deposit over Rs 15 lakh in a Fixed Deposit scheme? State Bank of India is offering a higher interest rate than PPF, NSC, and various other Post Office deposit schemes. Under SBI Sarvottam (non-callable) term deposit scheme, senior citizens can get a 7.9% interest rate on deposits of 2 years. The general public can get 7.4% interest on Sarvottam deposits of two years.
On 1 year deposits under the Sarvottam scheme, senior citizens can get a 7.6% interest rate while others can get 7.1% interest. According to information on the SBI website, the interest rate for Sarvottam (Non-Callable) Domestic Retail Term Deposits has been revised with effect from 17th February 2023. (Also read: Latest FD rate hikes in 2023)
The annualised yield on 2-year Sarvottam deposits of above Rs 15 lakh is 8.14% while the yield for a 1-year deposit is 7.6% for senior citizens. On bulk deposits of Rs 2 crore to Rs 5 crore, SBI
Also Read: Best 5-year Government Bank Fixed Deposit Interest Rates for Senior Citizens
The SBI also recently revised its interest rates for regular term deposits where it is offering 7.5% interest to senior citizens for deposits of 2 years to less than three years and, 5 years to 10 years. Under a special Amrit Kalash deposit of 400 days, SBI is offering 7.6% interest to senior citizens and 7.1% to others.
Compared to SBI Sarvottam Term Deposit rates, current interest rates offered on various small savings schemes and post office deposits for senior citizens are less.
PPF Interest Rate
The current interest rate on Public Provident Fund deposits is 7.1%. You can invest only Rs 1.5 lakh in a PPF account in a year. Though the PPF interest rate is lower than the SBI Sarvottam deposit, the tax benefits offered by the PPF account make it better than any FD scheme.
Post Office Interest Rates
On 5-year Post Office Time deposits, you can get 7% interest. The rates offered by Post Office on 1-year and 2-year deposits are 6.6% and 6.8% respectively. Under Post Office monthly income account, you can get a 7.1% interest rate.
NSC Interest Rate
The current interest rate for National Saving Certificate (NSC) deposits is 7% compounded annually. You can invest in this scheme for five years and also enjoy a tax benefit under Section 80C.
Also Read: Fixed Deposit investment strategy for 2023
KVP interest rate
The current interest rate for Kisan Vikas Patra (KVP) deposits is 7.2% compounded annually. You can double your investment with this scheme in 120 months.