Investment: Small savings schemes or FDs, where do you earn more? Here's the complete list..

The government on Wednesday kept the interest rates unchanged for various small savings schemes for the seventh consecutive quarter, starting January 1, 2026. These schemes include PPF and NSC. The Finance Ministry, in a notification, stated that the interest rates on small savings schemes for the fourth quarter of FY 2025-26 will remain the same as those applicable in the third quarter of FY 2025-26. So, let's understand where you will get more interest – in a popular investment option like an FD or in these savings schemes?

Interest Rates on Small Savings Schemes
According to the notification issued by the government, the Sukanya Samriddhi Yojana, one of the most popular small savings schemes, will offer an interest rate of 8.2 percent on deposits, while the interest rate on three-year term deposits will remain at 7.1 percent, the same as the current quarter. The interest rates for Public Provident Fund (PPF) and Post Office Savings Account schemes have also been kept unchanged at 7.1 percent and 4 percent respectively. Additionally, the interest rate on Kisan Vikas Patra will be 7.5 percent, and the investment will mature in 115 months.

Interest on National Savings Certificate
The interest rate on National Savings Certificates (NSC) will remain at 7.7 percent for the January-March quarter. Similar to the current quarter, the Monthly Income Scheme will also offer investors a return of 7.4 percent during the fourth quarter of the current financial year. The interest rates on small savings schemes offered through post offices and banks have remained unchanged for the seventh consecutive quarter. Earlier, the government had revised the interest rates of some schemes in the fourth quarter of 2023-24.

Interest Rates on FDs
Following the RBI's interest rate cuts, several government and private banks have revised the interest rates offered on their FDs. Let's look at the latest rates. 

SBI Bank
According to a Paisabazaar report, SBI, one of the country's largest public sector banks, offers FD interest rates of 3.05%-6.45% per annum for the general public and 3.55%-6.95% per annum for senior citizens for tenures ranging from 7 days to 10 years. SBI's tax-saving FD interest rate is 6.05% per annum for the general public and 7.05% per annum for senior citizen depositors.

Axis Bank
Axis Bank offers FD interest rates of 3.00-6.45% per annum for the general public and 3.50-7.20% per annum for senior citizens for tenures ranging from 7 days to 10 years. The bank also offers tax-saving FDs at 6.45% per annum for the general public and 7.20% per annum for senior citizen depositors for a 5-year tenure.

HDFC Bank
HDFC Bank offers FD rates of 2.75-6.45% per annum for the general public and 3.25-6.90% per annum for senior citizens for tenures ranging from 7 days to 10 years. The bank is offering tax-saving FDs at 6.40% per annum for the general public and 6.90% per annum for senior citizen depositors for a 5-year tenure.

ICICI Bank
ICICI Bank, a major private sector bank, offers FD rates of 2.75-6.50% per annum for the general public and 3.25-7.10% per annum for senior citizens for tenures ranging from 7 days to 10 years. The bank is offering tax-saving FDs at 6.50% per annum for the general public and 7.10% per annum for senior citizen depositors for a 5-year tenure. 

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. These rates are for tenures ranging from 7 days to 10 years for senior citizens. Currently, the interest rate on PNB Tax Saving FDs is 5.85%-6.25% per annum for the general public and 6.35%-6.75% per annum for senior citizens.

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