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Savings, Recurring Deposit (RD), Fixed Deposit (FD) Accounts: Post Office Vs State Bank Of India (SBI)

Fixed deposits are a one-time investment but recurring deposits require periodical contributions.
Fixed deposits are a one-time investment but recurring deposits require periodical contributions.

Post offices across the country offer the option of opening savings accounts, recurring deposits (RDs) and fixed deposits (FDs). The largest lender of the country, State Bank of India (SBI), also offers the option of opening these accounts. While a savings bank account is a safe place to maintain one's residual savings and park funds for regular expenses as well as for any emergencies, fixed deposits and recurring deposits help customers accumulate wealth and grow on their savings. Fixed deposits are a one-time investment but recurring deposits require periodical contributions.

Here is a comparison of interest rates offered in savings, recurring deposit and fixed deposit accounts by post offices and State Bank of India (SBI):

Interest rates on post office savings accounts:

Deposits in savings accounts of post offices fetch an interest rate of 4 per cent per annum, according to the India Post website - indiapost.gov.in.

Interest rates on post office fixed deposits

Period Rate
1yr.A/c 6.60%
2yr.A/c 6.7%
3yr.A/c 6.90%
5yr.A/c 7.40%


Interest rates on post office recurring deposits

Your deposits in recurring deposit accounts of post offices fetch 6.9 per cent per annum. On maturity, Rs 10 in the account fetches Rs 717.43. The account can be continued for another five years on a year-to-year basis.

Interest rates on State Bank of India (SBI) savings accounts

Particulars Rate of Interest
Saving Deposits Balance upto Rs. 1 crore. 3.50% p.a
Saving Deposits Balance above Rs. 1 crore. 4.00% p.a


Interest rates on State Bank of India (SBI) fixed deposits

Below Rs 1 crore: All figures in percentage, according to sbi.co.in:

Tenors Existing for Public w.e.f. 28.03.2018 Revised For Public w.e.f. 28.05.2018 Existing for Senior Citizens w.e.f. 28.03.2018 Revised for Senior Citizens w.e.f. 28.05.2018
7 days to 45 days 5.75 5.75 6.25 6.25
46 days to 179 days 6.25 6.25 6.75 6.75
180 days to 210 days 6.35 6.35 6.85 6.85
211 days to less than 1 year 6.4 6.4 6.9 6.9
1 year to less than 2 year 6.4 6.65 6.9 7.15
2 years to less than 3 years 6.6 6.65 7.1 7.15
3 years to less than 5 years 6.7 6.7 7.2 7.2
5 years and up to 10 years 6.75 6.75 7.25 7.25


Interest rates on State Bank of India (SBI) recurring deposits

Interest rates on RDs and FDs of SBI are the same, according to the bank's corporate website - sbi.co.in.

Among other savings schemes, post offices offer monthly income scheme account, senior citizen savings scheme, 15-year public provident fund accounts, national savings certificates, Kisan Vikas Patra, and Sukanya Samriddhi accounts.  

Customers have instant access to the funds in their savings account, with the flexibility to deposit and withdraw money at any time.