These schemes provides more returns than fixed deposit.

The central government has decided not to change the interest in Small Savings Schemes for the July-September quarter. This includes schemes like Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS). After the government did not change these interest rates on Small Savings Schemes, now these schemes have become more attractive than Bank Fixed Deposit. In fact, after the loss of the economy from Kovid-19, the Reserve Bank of India has continuously cut policy interest rates. After this decision of RBI, banks have reduced FD rates.

Interest in Public Provident Fund is getting interest at the rate of 7.1 percent. Similarly, interest in PO Term Deposit rates for one to three years will continue to get 5.5% interest. The interest rate on 5-year post office term deposits is 6.7 percent.