Fixed deposit interest rates are high, but are PPF and debt mutual funds better than FDs for investment? Find out – Times of India

fixed deposit interest rates are touching multi-year highs and as an investor you must be wondering whether this is the right time to invest in FDs. In fact, for the first time in many years, banks are offering real returns on FDs beating inflation.
reserve Bank of India (reserve Bank of India) has increased repo rate 250 basis points since the rate hike cycle began last year. Along with this, banks have also increased the interest rates on FDs, making them a very attractive investment bet.
In this episode of TOI Wallet Talks, Harshvardhan Roongta Securities, CFP, Roongta talks about the importance of asset allocation and why this is the right time to park your money in debt instruments.

But within debt investments, banks are Fixed deposit way to go? Are fixed income Investments like Debt Mutual Funds and Public Provident Fund (PPF) Better investment avenues? Watch the video above to know what should be your investment horizon – Fixed Deposit, Debt MF or ppf,
Roongta also talks about the returns offered by post office savings schemes and senior citizens’ savings schemes. With effect from April 1, the deposit limit in Senior Citizen Savings Schemes has been increased from Rs 15 lakh to Rs 30 lakh.
According to Roongta, an important factor to keep in mind is the tax implications. Hence while choosing between various fixed income instruments, the driving principle should not only be interest rates, but also post-tax returns.
With March 31, 2023 approaching, Roongta also gives some last minute tax planning tips if you are planning to invest in fixed income instruments.