FDs vs Small Savings: Where to Invest for Better Returns & Tax Benefits?

• Small Savings Schemes (SSS) interest rates (6.9%-8.2%) generally surpass bank FDs (6%-7%), with rates like SSY and SCSS at 8.2%.
• Government maintained SSS interest rates for Jan-Mar 2026 quarter, ensuring stability for investors.
• FDs offer greater liquidity with premature withdrawal options, unlike SSS which have longer lock-in periods (e.g., NSC 5 years, PPF 15 years).
• SSS like PPF and NSC provide significant tax benefits with tax-free interest, while FD interest is taxable per income slab.
• Experts advise a balanced investment strategy, combining FDs for short-term needs/emergencies and SSS for long-term goals and tax-efficient returns.

Why It Matters: Combine FDs and Small Savings Schemes for a balanced, secure, and tax-efficient investment portfolio.