Banking: These government schemes are giving more interest than SBI, HDFC, PNB and ICICI, you will become rich in 5 years..

Government Small Investment Schemes: Many banks have reduced interest rates on fixed deposits and savings accounts, as the Reserve Bank of India has cut the repo rate by 100 basis points or 1% since February this year. However, the government has kept the interest rates on small savings schemes such as Public Provident Fund (PPF), National Savings Scheme (NSC), Senior Citizen Savings Scheme (SCSS), and others unchanged as of June 30, 2025. The new rates will be applicable for the September quarter of the financial year 2025-26.

In such a situation, if you are thinking of investing in a bank's fixed deposit, then before that, definitely compare the government small savings schemes with the fixed deposits of many banks like the State Bank of India (SBI), HDFC Bank, ICICI Bank, and Punjab National Bank (PNB). Because many government savings schemes are getting higher returns than these banks. Let us tell you about 5 such small savings schemes, which are better than the rates of fixed deposits of top banks.

Short-term government savings schemes:

If you want to invest your money only for 5 years, then you can take advantage of schemes like term deposit, National Savings Certificate (NSC), and Post Office Time Deposit (POTD). Post Office Time Deposit (POTD) (5 years) offers an interest rate of 7.5% for all citizens, while NSC is offering a slightly higher rate of 7.7%. For senior citizens, SCSS is offering an interest rate of 8.2%.

On the other hand, State Bank of India (SBI) offers a 6.3% interest rate for general depositors and a 6.8% for senior citizens on a 5-year term deposit. HDFC Bank offers interest rates of 6.4% for general citizens and 6.9% for senior citizens, while ICICI Bank offers slightly higher rates of 6.6% and 7.1%. PNB offers 6.5% for general citizens and 7% for senior citizens.

Are post office schemes and FDs safe?
Post office schemes are backed by the Government of India. Due to this government backing, these accounts are particularly attractive for those who want to earn fixed interest while keeping their principal safe.

On the other hand, bank fixed deposits (FDs) are also considered safe investments, but there is a limit to their safety. Most banks are covered under the Deposit Insurance and Credit Guarantee Corporation (DICG). However, bank depositors should keep in mind that their money is insured up to Rs 5 lakh (including interest). The amount beyond this limit may or may not be recovered if the bank fails.

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