Indian Bank & Post Office Savings Schemes – Interest & Risks
Complete guide on interest rates, benefits and risk factors of Indian bank deposits, post office schemes and other government savings options.
🏦 Bank Fixed Deposit (FD) – Interest Rates (2026)
| Bank | 1 Year FD | 2 Year FD | 5 Year FD |
|---|
| State Bank of India | 5.00% – 5.50% | 5.10% – 5.60% | 5.40% – 6.10% |
| HDFC Bank | 5.10% – 5.75% | 5.20% – 5.85% | 5.50% – 6.25% |
| ICICI Bank | 5.10% – 5.80% | 5.20% – 5.90% | 5.60% – 6.25% |
Interest varies by bank and deposit amount. Senior citizens often get extra 0.25%–0.50%.
📮 Post Office Saving Schemes – Interest Rates
| Scheme | Interest Rate | Tenure |
|---|
| Post Office RD | 6.90% | 5 Years |
| Post Office TD | 6.50% – 7.00% | 1–5 Years |
| PPF | 7.10% | 15 Years |
| NSC | 7.00% | 5 Years |
| Senior Citizens Savings Scheme | 8.20% | 5 Years |
🇮🇳 Other Government Savings Options
- Public Provident Fund (PPF) – Long term wealth + tax saving
- National Savings Certificate (NSC) – Guaranteed returns
- Sukanya Samriddhi Yojana – For girl child savings
- Senior Citizens Savings – High returns for retirees
⚠️ Risk Factors
- Inflation risk: High inflation can reduce real returns.
- Interest rate changes: Banks adjust rates quarterly.
- Liquidity risk: Early withdrawal penalties.
- Credit risk: Bank FD small risk if bank weak (but insured up to ₹5 lakhs).
Note: Government and post office schemes have **very low risk**, but returns may fluctuate yearly.
❓ FAQs
- Is bank FD safe? Yes, bank FDs are safe and insured up to ₹5 lakh per bank.
- Which gives higher interest? Senior Citizens Savings Scheme & some post office schemes typically give higher rates.
- Tax applicable? Yes, interest is taxable as per income slab.
Source: Government & bank public interest data. Always verify with official bank/post office rates before investing.