While headline interest rates are the easiest feature to spot, picking an investment based purely on numbers can be misleading. Factors such as deposit limits, lock-in periods, tax implications, and safety play an equally critical role in shaping your overall financial returns.
Small savings rates remain steady for Q2 FY27, with PPF offering 7.1%, NSC 7.7%, SCSS 8.2%, and 5-year Post Office Deposits 7.5%. However, bank FD rates vary significantly across different lenders and tenures. (Image: File Photo)
Bank FDs offer flexible investment amounts without strict upper limits. In contrast, small savings schemes enforce annual caps PPF limits deposits to Rs 1.5 lakh annually, while SCSS sets a maximum ceiling of Rs 30 lakh. (Image: File Photo)
Bank FDs generally allow premature withdrawal subject to bank penalties. Small savings schemes carry rigid commitments—PPF requires a 15-year tenure with restricted withdrawals, while NSC runs for five years, making liquidity a key decision factor. (Image: File Photo)
Interest earned from bank FDs, NSC, and SCSS is fully taxable according to your income tax slab. Meanwhile, PPF enjoys distinct tax-exempt status, meaning post-tax returns can differ vastly for investors in higher tax brackets. (Image: File Photo)
PPF suits long-term wealth accumulation, while SCSS and Post Office Monthly Income Accounts provide regular income payouts for senior citizens. Similarly, bank FDs can be structured for cumulative growth or periodic monthly/quarterly payouts. (Image: File Photo)
Bank deposits carry DICGC insurance protection up to Rs 5 lakh per depositor per bank, covering both principal and interest. Spreading large deposits across multiple banks helps manage risk, while small savings schemes carry sovereign guarantees. (Image: File Photo)
Disclaimer: News18 advises users to consult certified financial experts before making any investment decisions. (Image: File Photo)
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