Bank FDs VS Small Savings Schemes: Nowadays, the inflation rate is increasing day by day, due to which many people are now preferring to save for the future of themselves and their family, because they never know when and what emergency will come. In such a situation, people want to keep their money safe and also want good returns. Bank FD and small savings schemes emerge as the two most popular options, but both have their own advantages and limitations, hence people should choose the right option.

The most important thing is that in the April-June 2026 quarter, the government has not made any change in the interest rates of small savings schemes, while the bank FD rates are around 6.25 percent to 6.66 percent, while small savings schemes are still giving returns up to 8.2 percent. In such a situation, the question before investors is whether they should choose FD facility or invest in government schemes for higher returns.

Who is ahead in interest rates?

If we talk about returns, small savings schemes look better than bank FDs, know how?

• Sukanya Samriddhi Yojana: 8.2 percent
• NSC: 7.7 percent
• Kisan Vikas Patra: 7.5 percent
• Monthly Income Plan: 7.4 percent
• PPF: 7.1 percent
• Post Office Saving: 4 percent

If we look at bank FD rates

• SBI, HDFC, ICICI: 6.25 percent
• Kotak Mahindra: 6.50 percent
• Yes Bank: 6.66 percent

Lock-in and Liquidity

Let us tell you that bank FDs are more flexible. You can invest for more or less time and can also withdraw money when needed (with penalty). If we talk about small savings schemes then there is more lock-in in it.

• NSC: 5 years
• PPF: 15 years
• Sukanya Yojana: Long term (up to the age of the daughter)

Therefore these plans are better for long term goals.

Whose benefit in tax?

Tax exemption up to Rs 1.5 lakh is available under Section 80C on investing in small savings schemes. In some schemes, tax exemption is also available on interest. On the other hand, the interest on bank FD is fully taxable, which may reduce the actual returns.

Who is safer?

Both options are considered safe. Small savings schemes are backed by the government, whereas bank FDs are also safe in big banks. Therefore both are reliable in terms of risk.

Is it right to invest in both?

Experts believe that instead of choosing just one option, it is better to invest in both. With this, you can get more returns and tax benefits from liquidity and small savings schemes from FD.

Mirae Asset Great Consumer Fund: The rapidly increasing consumption in India has emerged as a big opportunity for investment. Based on this theme, Mirai Asset Mutual Fund has attracted attention by giving excellent returns to investors in the last few years. Mirai Asset Mutual Fund, which was launched about 15 years ago, has given good profits to investors by taking advantage of the strength of the consumption sector. Now finally the question arises that what did this fund do that gave so much benefit to the investors?

Fund size and performance

The asset under management (AUM) of this fund is approximately Rs 4500 crore. Also, it has performed brilliantly in the last few years.

• Nearly 25 percent CAGR returns in the last 5 years.
• About 15.4 percent CAGR return on SIP since inception in 2011.

If an investor had done SIP of Rs 10 thousand every month from the beginning, then today his actual amount would have increased to around Rs 62.9 lakh.

Benefit even on lump sum investment

Let us tell you that this fund has given good returns not only to SIP but also to those who invest lump sum. If an investor had invested Rs 10,000 in the beginning, today that amount would have become more than Rs 88,000. Accordingly, the CARG of the fund has been around 15.76 percent.

Where does he invest?

This fund invests in sectors related to consumption, such as…

• consumer durables
• automobile
• retail
• Telecom
• FMCG

Its portfolio includes big companies like Mahindra & Mahindra, Maruti Suzuki, Titan Company and Bharti Airtel.

What is the expert advice?

According to fund manager Siddharth Chhabria, it is very important to have a vision of at least 5 years while investing in such thematic funds. He believes that consumer discretionary sectors like jewellery, fashion, retail can grow rapidly and can give 1.5 to 2 times more growth than GDP.

Positive outlook on quick commerce and digital platforms

However, his stance regarding the FMCG sector is a bit cautious, because the margins here are at their highest and competition is also increasing. In FMCG, he considers food category better than personal care and if we look at it, his outlook towards quick commerce and digital platforms is positive, because now the profit situation in these sectors is gradually getting stronger.

FD Laddering Strategy: Investors who want to stay away from market fluctuations consider fixed deposits as a reliable option. In FD, investors also get secure returns along with fixed interest rates. Due to which the investor does not have to take much risk. However, if you include planning for FD laddering, there may be a change in your returns. Let us know, what is FD laddering and how does it work?

What is FD laddering?

FD laddering is a method in which investors make multiple fixed deposits for different tenures. So that every FD gets completed every now and then. This method is especially useful for those who want to make safe investments for the long term.

The biggest advantage of FD laddering is that you keep getting money from time to time. Also, due to investment in different tenures, there is an opportunity to avail the benefit of better interest rates.

Benefits of FD laddering

By adopting FD laddering, the investor gets many benefits. By investing money at different times, you can get the benefit of better interest rates. Besides, there is a possibility of total return also increasing.

This method also helps in tax planning and reduces risk. If you are getting better interest rates at the time of maturity, you can reinvest it.

FD laddering from Rs 1 lakh

If you want to invest Rs 1 lakh in FD, then it makes more sense to divide it into small parts instead of investing it all at once. For example, you can make FD for different periods of time by dividing it into Rs 20-20 thousand. Due to which one FD will be completed every year.

When an FD is completed, the money can be used as per need or the remaining money can be reinvested. Similarly, by adopting the same method with other FDs, your money runs continuously. Besides, there is also hope of getting higher returns.

Also read: Only 5 years delay in SIP and loss of Rs 3 crore! This is the scary mathematics of compounding, stop being lazy

Iran US Israel War: US President Donald Trump has announced a ceasefire for two weeks amid the war with Iran. This big decision of Trump has not only averted the sound of war, but has also given a new flight to the Indian rupee and the stock market. In early trade on Wednesday, the rupee strengthened by 50 paise to reach 92.56 against the US dollar. Yesterday it closed at 93.06.

The announcement of a two-week ceasefire between America and Iran is the biggest reason behind this strengthening of the rupee. Not only the rupee, there is a Diwali like atmosphere in the stock market today. Sensex has jumped by more than 2800 points and reached the level of 77 thousand 144, while Nifty has also seen an increase of more than 821 points.

There has been a huge fall in the prices of crude oil in the international market. Brent crude has fallen by more than 12% to around $95 per barrel. After Iran’s agreement to open the ‘Strait of Hormuz’, the fear of interruption in oil supply has ended, the direct effect of which has been seen in the fall in the dollar index. Although selling by foreign investors (FIIs) continued yesterday, news of global peace has increased risk appetite in the market.

What benefit does the general public get from the strengthening of the rupee?

When the Indian Rupee strengthens against the Dollar, it has a direct and positive impact on our pockets. Its main benefits are given below.

Relief in prices of petrol and diesel

India buys about 80% of its crude oil needs from abroad. Which is paid in dollars. In such a situation, when the rupee strengthens, oil import becomes cheaper. This increases the possibility of reduction in prices of petrol and diesel in future.

control on inflation

Due to low freight costs, prices of fruits, vegetables and everyday items come down. When fuel is cheap, the cost of transporting goods from one city to another reduces, due to which the retail inflation rate comes down.

Electronics and foreign gadgets will be cheaper

Parts of smartphones, laptops, and other electronic goods are mostly imported. Lower import costs create pressure on companies to reduce prices, due to which you can get cheaper mobiles and computers.

Foreign travel and education affordable

If your child is studying abroad or you are planning to travel abroad, then you will get direct benefit. Earlier you had to pay 93 rupees for 1 dollar, now you have to pay 92.56. That means you will save on every dollar.

Reduction in prices of edible oils

India imports palm oil and other edible oils in large quantities. Due to strengthening of rupee, the import cost of these oils will reduce and your kitchen budget will be balanced.

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