Small Savings Scheme
The government on Wednesday made no change in the interest rates for various small savings schemes starting from January 1, 2026, for the seventh consecutive quarter. PPF and NSC are also included in these schemes. The Finance Ministry said in a notification that the interest rates on small savings schemes for the fourth quarter of the financial year 2025-26 will remain the same as the rates applicable in the third quarter of the financial year 2025-26. In such a situation, let us understand which of the popular investment options, FD or these savings schemes, will give you more interest?
Interest on Small Savings Schemes
According to the notification issued by the government, the most popular scheme among small savings schemes, Sukanya Samriddhi Yojana, will get an interest rate of 8.2 percent on the deposits, while the interest rate on three-year term deposits will remain the same at 7.1 percent like the current quarter. At the same time, the interest rates for Public Provident Fund (PPF) and Post Office Savings Account Scheme have also been kept at 7.1 percent and 4 percent. Apart from this, the interest rate on Kisan Vikas Patra will be 7.5 percent and the full investment will be received in 115 months.
Interest on National Savings Certificate
At the same time, the interest rate on National Savings Certificate (NSC) will remain 7.7 percent for the January-March quarter. Like the current quarter, the monthly income scheme will also give investors a return of 7.4 percent during the fourth quarter of the current financial year. Along with this, interest rates on small savings schemes run through post offices and banks have remained unchanged for the seventh consecutive quarter. Earlier, the government had changed the interest rates of some schemes in the fourth quarter of 2023-24.
Interest rates on FD
After the cut in interest rates by RBI, many government and private banks have revised the rates offered on their FDs. Let us tell you about the latest rates.
SBI Bank
According to Paisa Bazaar report, SBI, one of the largest government banks in the country, offers FD interest rates of 3.05%-6.45% per annum to the general public and 3.55%-6.95% per annum to senior citizens for a period of 7 days to 10 years. The interest rate on SBI Tax Saving FD is 6.05% per annum for general public and 7.05% per annum for senior citizen depositors.
Axis Bank
At the same time, Axis Bank offers FD interest rates of 3.00-6.45% per annum to the general public and 3.50-7.20% per annum to senior citizens for a period ranging from 7 days to 10 years. The bank also offers tax saving FD at the rate of 6.45% per annum to the general public and 7.20% per annum to senior citizen depositors for a period of 5 years.
HDFC Bank
HDFC Bank offers FD rates of 2.75-6.45% per annum to the general public and 3.25-6.90% per annum to senior citizens for a period of 7 days to 10 years. The bank is offering tax saving FD at the rate of 6.40% per annum to the general public and 6.90% per annum to senior citizen depositors for a period of 5 years.
ICICI Bank
Apart from this, the big private sector bank ICICI Bank is offering FD rates of 2.75-6.50% per annum to the general public and 3.25-7.10% per annum to senior citizens for a period ranging from 7 days to 10 years. The bank is offering tax saving FD at the rate of 6.50% per annum to the general public and 7.10% per annum to senior citizen depositors for a period of 5 years.
Punjab National Bank
Punjab National Bank (PNB) is offering FD interest rates of 3.00-6.50% per annum to the general public and 3.50-7.00% per annum to senior citizens. For senior citizens for a period ranging from 7 days to 10 years. Currently the interest rate on PNB Tax Saving FD is 5.85%-6.25% per annum for general public and 6.35%-6.75% per annum for senior citizens.
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