SBI deposit vs Post Office deposit vs KVP (Kisan Vikas Patra): Latest interest rates comparison

Interest rate comparison of SBI FD, Post Office Deposit and Kisan Vikas Patra

SBI FD vs Post Office deposit vs Kisan Vikas Patra

Fixed income instruments promise a guaranteed rate of return that is not affected by market volatility. As such, these instruments are quite popular among investors.

The rates of these instruments are determined by the financial institution that issues them. These financial institutions, in turn, calculate the interest based on different macroeconomic factors, repo rates included.

The Reserve Bank of India (RBI) recently increased the repo rates to bring inflation in check. The Monetary Policy Committee (MPC) was created with three RBI members and three external experts to review the repo rates. The committee reviewed and increased the rate to 5.90%.

This hike in the repo rate has percolated down to banks and post offices that have increased their interest rates too. Effective from 1st October 2022, the increased rates would give you a higher return on your investment. Here's a look at the latest interest rates on fixed deposits, post office deposits and the Government saving scheme, Kisan Vikas Patra.

SBI FD interest rate

The State Bank of India is one of the largest banks in the country. It offers a variety of fixed deposit schemes to its customers. The deposits range from 7 days to up to 10 years.

The interest rate on fixed deposits offered by SBI depends on the amount of investment, your age and the tenure that you select. Given below are the latest interest rates for SBI fixed deposits 

SBI FD interest rate

(Source: https://sbi.co.in/web/interest-rates/interest-rates/deposit-rates)

Related - Here are the five best banks based on their interest rates

Post Office Term Deposits

The post office has increased the interest rates on some of its deposit schemes. Currently, the post office issues four types of time deposit schemes based on their tenure. The deposit schemes and their effective interest rates are as follows 

post office term deposits

(Source: https://www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx)

Related – Find out more about post office deposit schemes

Kisan Vikas Patra

Kisan Vikas Patra is a government-backed fixed-income saving scheme that is offered by the post office. Following the hike in the repo rates, the Government has also made changes to the Kisan Vikas Patra. The changes include a hike in the interest rate but a reduction in the maturity tenure.

The changes are as follows –

Kisan Vikas Patra

The bottom line

With a hike in interest rates, these saving schemes have become attractive from the returns point of view. So, compare the schemes and invest in them depending on your investment needs and strategy.

Fixed income instruments promise a guaranteed rate of return that is not affected by market volatility. As such, these instruments are quite popular among investors.

The rates of these instruments are determined by the financial institution that issues them. These financial institutions, in turn, calculate the interest based on different macroeconomic factors, repo rates included.

The Reserve Bank of India (RBI) recently increased the repo rates to bring inflation in check. The Monetary Policy Committee (MPC) was created with three RBI members and three external experts to review the repo rates. The committee reviewed and increased the rate to 5.90%.

This hike in the repo rate has percolated down to banks and post offices that have increased their interest rates too. Effective from 1st October 2022, the increased rates would give you a higher return on your investment. Here's a look at the latest interest rates on fixed deposits, post office deposits and the Government saving scheme, Kisan Vikas Patra.

SBI FD interest rate

The State Bank of India is one of the largest banks in the country. It offers a variety of fixed deposit schemes to its customers. The deposits range from 7 days to up to 10 years.

The interest rate on fixed deposits offered by SBI depends on the amount of investment, your age and the tenure that you select. Given below are the latest interest rates for SBI fixed deposits 

SBI FD interest rate

(Source: https://sbi.co.in/web/interest-rates/interest-rates/deposit-rates)

Related - Here are the five best banks based on their interest rates

Post Office Term Deposits

The post office has increased the interest rates on some of its deposit schemes. Currently, the post office issues four types of time deposit schemes based on their tenure. The deposit schemes and their effective interest rates are as follows 

post office term deposits

(Source: https://www.indiapost.gov.in/Financial/pages/content/post-office-saving-schemes.aspx)

Related – Find out more about post office deposit schemes

Kisan Vikas Patra

Kisan Vikas Patra is a government-backed fixed-income saving scheme that is offered by the post office. Following the hike in the repo rates, the Government has also made changes to the Kisan Vikas Patra. The changes include a hike in the interest rate but a reduction in the maturity tenure.

The changes are as follows –

Kisan Vikas Patra

The bottom line

With a hike in interest rates, these saving schemes have become attractive from the returns point of view. So, compare the schemes and invest in them depending on your investment needs and strategy.

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