Fixed deposit interest rates high, but are PPF and debt MFs better investment bets than FDs? Find out

Fixed deposit interest rate is hitting a several-year high and as an investor you may be wondering if this is the right time to put your money in FD. In fact, for the first time in several years, banks are providing inflation-defying real returns on FDs.
Reserve Bank of India (RBI) has increased repo rate up 250 basis points since the rate hike cycle began last year. With that, banks have also increased the interest rates they offer on FDs, making them a very attractive investment.
In this episode of TOI Wallet Talks, Harshvardhan Roongta, CFP of Roongta Securities talks about the importance of asset allocation and why this is the right time to put your money in debt instruments.

But in debt investment, is the bank fixed deposit way to go? To be fixed income investments such as debt mutual funds and Public Provident Fund (PPF) better investment path? Watch the video above to see what you should invest in – fixed deposit, MF debt or PPF?
Roongta also talked about the interest brought by postal savings programs and savings programs for the elderly. Effective April 1, the deposit limit in senior savings schemes has been doubled from Rs 15 lakh to Rs 30,000.
According to Roongta, the impact of taxes is an important factor to consider. Thus, while choosing between different fixed income instruments, interest is not the only driving principle but also the after-tax returns.
As March 31, 2023 approaches, Roongta also offers some last-minute tax planning tips if you’re planning to invest in fixed income instruments.