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While bank FD interest rates are decreasing in 2025, many small savings schemes of post office are giving better returns. Many schemes are offering more than 7 percent interest, due to which the interest of investors has increased rapidly. Due to government guarantee, these schemes are considered risk free, which makes them more attractive than bank FDs.
New Delhi. Many big banks have reduced their fixed deposit interest rates in 2025. New investors are now able to get FD at rates of only 6-7 percent, whereas a few years ago these rates were higher. The current economic situation and efforts to reduce costs in the banking sector have put pressure on interest rates. In such an environment, investors are looking for safe but better returns, due to which post office schemes have suddenly come into focus again.
Post office schemes are giving more than 7 percent interest
The government decides the interest rates of Post Office Small Savings Schemes every quarter. At present, many schemes are giving returns of 7 percent or more, which are much better than the FD rates of many banks. These include schemes like National Savings Time Deposit, Monthly Income Scheme, Senior Citizen Savings Scheme and Public Provident Fund. The special thing is that tax benefits are also available on many schemes in the old tax system, due to which the net return increases further. Investors believe that post office schemes are emerging as an excellent option to get stable interest in the long term.
Why is the popularity of post office schemes increasing?
Investors are also attracted towards post office schemes because they have full sovereign guarantee of the Indian Government. While only amounts up to Rs 5 lakh in bank FDs are protected under DICGC, the entire investment in post office schemes is guaranteed by the government. This reduces the risk to almost zero, no matter how large the investment amount is. In such a situation, investors are considering post office schemes as a strong alternative to bank FD to get better returns in safe options.
What signals for investors?
In this era of fluctuating interest rates, Post Office Small Savings Schemes provide a strong option for those looking for safe returns. Due to more than 7 percent interest and government guarantee, these schemes not only reduce the risk but also provide stable income in the long run. Experts believe that if bank FD rates remain low like this, the pace of investment in post office schemes may increase further in the coming months. However, it is important for investors to choose the right scheme as per their financial goals and investment tenure, so as to get maximum benefit of returns.
