Fixed deposit interest rates high, but are debt PPFs and MFs better investment bets than FDs? Discover

Interest rates on fixed deposits they are hitting multi-year highs and as an investor you may be wondering if now is the right time to put your money into FDs. Indeed, for the first time in several years, banks are offering real yields that exceed inflation on FDs.
The Reserve Bank of India (RBI) increased the repo rate by 250 basis points since the start of the rate hike cycle last year. In line with this, banks have increased the interest rates they offer on FDs as well, making them a very attractive investment bet.
In this episode of TOI Wallet Talks, Harshvardhan Roongta, the CFP of Roongta Securities, talks about the importance of asset allocation and why now is the right time to invest your money in debt instruments.

But within debt investing, there are the banks fixed deposits the way to go? I am fixed income investments such as debt mutual funds and public benefit funds (PPF) best avenues for investment? Watch the video above to know what your investment should be: fixed deposits, MF of debt or PPF?
Roongta also talks about the returns offered by post office savings banks and retirement savings banks. Effective April 1, the limit on deposits in senior savings plans has been doubled from Rs 15 lakh to Rs 30 lakh.
According to Roongta, the tax implication is an important factor to consider. So, when choosing between various fixed income instruments, interest rates should not be the only guiding principle, but also the tax return.
As March 31, 2023 approaches, Roongta is also offering some last-minute tax planning tips if you plan to invest in fixed income instruments.