Small savings schemes still attractive despite fixed deposit rate hike

State Bank of India has twice hiked interest rates on fixed deposits within a month, but an investor still gets better returns at Post Office

Traditional fixed deposit investors have something to cheer about. Even though the government kept interest rates on small savings scheme unchanged, the State Bank of India (SBI) has hiked interest rates on fixed deposit (FDs) twice in about a month. The upward revision is in longer-tenured of two years and above making bank FDs once again attractive for conservative investors.

Many of these investors had started looking at debt funds in the recent months. “But the volatility in of interest rates in the past four-five months also worried many who are not experienced with debt funds,” says a Sebi-registered investment