1, 2 year post office time deposits vs bank fixed deposits: Which offers best interest rate?

The government hiked the interest rates of certain small savings schemes by up to 30 bps for the July-September 2023 quarter. The interest rates of schemes like the 1-and 2-year post office time deposits, 5-year recurring deposits have been hiked.


After the recent hike in POTD interest rates, let us take a look at how they compare with bank FDs of the same tenure.


Post office time deposits
For the July-September quarter, the government has hiked the interest rate of one year POTD by 10 basis points (bps) from 6.8% to 6.9%. It has raised the two-year POTD interest rate by 10 basis points (bps) from 6.9% to 7%.

SBI FD interest rates
State bank of India offers interest rate of 6.8% on tenure of 1 year to less than 2 years for regular citizens. The bank offers 7% interest on tenure of 2 years to less than 3 years and 6.50% on tenure between 3 years to less than 5 years. These rates are effective from February 15, 2023.

Tenors	Rates w.e.f. 15/02/2023
7 days to 45 days	3
46 days to 179 days	4.5
180 days to 210 days	5.25
211 days to less than 1 year	5.75
1 Year to less than 2 years	6.8
2 years to less than 3 years	7
3 years to less than 5 years	6.5
5 years and up to 10 years	6.5
400 days (Special Scheme i.e. “ Amrit Kalash”)	7.1

HDFC Bank FD interest rate
HDFC Bank offers an interest rate of 6.60% on tenure of 1 year to less than 15 months and 7.10% on 15 months to less than 18 months. The bank offers 7% interest on tenure ranging between 18 months to 5 years.

Tenor	Interest Rate (per annum)
7 - 14 days	3.00%
15 - 29 days	3.00%
30 - 45 days	3.50%
46 - 60 days	4.50%
61 - 89 days	4.50%
90 days < = 6 months	4.50%
6 months 1 days < = 9 months	5.75%
9 months 1 day to < 1 year	6.00%
1 year to < 15 months	6.60%
15 months to < 18 months	7.10%
18 months to < 21 months	7.00%
21 months - 2 years	7.00%
2 Years 1 day to < 2 Year 11 Months	7.00%
2 Years 11 Months - 35 Months	7.20%
2 Years 11 Months 1 day < = 3 Year	7.00%
3 Years 1 day to < 4 Years 7 Months	7.00%
4 Year 7 Months - 55 months	7.25%
4 Year 7 Months 1 day < = 5 Years	7.00%
5 Years 1 day - 10 Years	7.00%

ICICI Bank FD interest rate
ICICI Bank offers an interest rate of 6.70% on tenure of 1 year to less than 15 months and 7.10% on 15 months to less than 2 years.

	General
7 days to 14 days	3.00%
15 days to 29 days	3.00%
30 days to 45 days	3.50%
46 days to 60 days	4.25%
61 days to 90 days	4.50%
91 days to 120 days	4.75%
121 days to 150 days	4.75%
151 days to 184 days	4.75%
185 days to 210 days	5.75%
211 days to 270 days	5.75%
271 days to 289 days	6.00%
290 days to less than 1 year	6.00%
1 year to 389 days	6.70%
390 days to < 15 months	6.70%
15 months to < 18 months	7.10%
18 months to 2 years	7.10%
2 years 1 day to 3 years	7.00%
3 years 1 day to 5 years	7.00%
5 years 1 day to 10 years	6.90%
5 Years (80C FD) – Max to `1.50 lac	7.00%

PNB FD rates
Punjab National Bank offers interest rate of 6.75% on tenure of 1 year and 6.80% on 1 year to 443 days. PNB offers 77.25% tenure of 444 days.

Canara Bank FD interest rate
Canara Bank offers interest rate of 7% on tenure of 1 year and 7.25% on 444 days tenure. Canara Bank offers 6.90% tenure of between 1 Year to less than 2 Years

Term Deposits (All Maturities)	General Public
	Rate of Interest (% p.a.)
7 Days to 45 Days	4
46 Days to 90 Days	5.25
91 Days to 179 Days	5.5
180 Days to 269 Days	6.25
270 Days to less than 1 Year	6.5
1 Year Only	7
444 Days	7.25
Above 1 Year to less than 2 Years	6.9
2 Years & above to less than 3 Years	6.85
3 Years & above to less than 5 Years	6.8
5 Years & above to 10 Years	6.7