FDs vs Small Savings: Rates Unchanged, Which Offers Better Returns?

• Government confirms no change in small savings scheme interest rates for Jan-Mar 2026 quarter.
• Small savings schemes like SSY, SCSS offer up to 8.2% interest, generally higher than bank FDs (6-7%).
• Schemes like PPF and NSC provide tax benefits, while FD interest is taxable per income slab.
• Bank FDs offer better liquidity and premature withdrawal options compared to long lock-in periods of small savings.
• Experts recommend a balanced investment strategy combining FDs for liquidity and small savings for higher returns and tax benefits.

Why It Matters: Combine FDs and small savings for a balanced strategy, leveraging higher returns and liquidity.