Post Office Saving Schemes vs. Bank FDs: Where your money earns more in 2025

Since February, leading banks such as SBI, HDFC, ICICI, and PNB have revised their FD interest rates in response to a 100 basis points (bps) cut in the RBI’s repo rate.

So, what should conservative investors do? Stick with their bank FDs or shift to post office small savings scheme?

Bank FDs vs. Post Office Savings Schemes

**National Savings Certificate (NSC): **Fixed at 7.7% annually over a 5-year lock-in period.

**Senior Citizen Savings Scheme (SCSS): **Currently provides 8.2% interest, making it one of the most attractive options for retirees.

5-year bank fixed deposit rates offered by top lenders

**ICICI Bank: **6.6% (general), 7.1% (senior citizens).

Clearly, post office schemes offer a better return , with the SCSS standing out for senior citizens.

In terms of risk, small saving schemes are among the safest as they are fully backed by the Government of India, both the principal and the interest are guaranteed

Bank FDs are also considered risk free. Deposits in banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC), but only up to ₹5 lakh per depositor per bank (including interest).

With falling FD rates, for conservative investors, especially senior citizens, post office saving options are indeed a smart and secure investment choice.