FD Alternatives:Indian investors have been considering Fixed Deposit (FD) as the safest and most reliable investment for years. There is very little risk in this and the interest is also fixed in advance. But in today’s time when inflation is skyrocketing and interest rates are changing frequently, keeping money only in Fixed Deposit (FD) is no longer that beneficial.

If you want higher returns, good liquidity and almost zero risk, there are many options that can give you higher returns than Fixed Deposit (FD).

government bonds

Government bonds are the best option for those who want stable returns without any risk. These are guaranteed by the Central Government, which means there is no chance of losing money. Even though bond prices may fluctuate slightly due to fluctuations in interest rates, they are extremely stable and reliable for those who hold them for the long term. Higher returns than Fixed Deposit (FD) and government guarantee – what is needed.

treasury bills

If you want to invest money for short term, Treasury Bills are amazing. These come for 91 days, 182 days and 364 days. There is no separate interest on these, rather they are bought at a discount and the entire money is returned on maturity. Meaning safe and good returns in a few months. Liquidity also better than Fixed Deposit (FD).

RBI Floating Rate Savings Bond

Floating Rate Savings Bonds issued by RBI are for 7 years and currently they are getting around 8.05% interest. The most important thing – the interest rate is reset every 6 months. If interest rates increase in the market, your returns will also automatically increase. In fixed deposits (FD) the interest remains fixed, but these bonds protect you from inflation. Government guarantee + good returns = perfect combo.

corporate bonds

If you are willing to take some smart risk, then well rated corporate bonds can yield returns of 9% to 11%. If you choose bonds of AAA and AA rated companies then the risk is negligible. Nowadays, it has become very easy to invest in corporate bonds from home with platforms like Grip Invest, Wint Wealth, GoldenPi. The fastest way to withdraw Fixed Deposit (FD).

Post Office Schemes

If you want only government guarantee, then post office schemes are best:
National Savings Certificate (NSC) – around 7.7% interest
Sukanya Samriddhi Yojana – 8.2% interest for daughters
Senior Citizen Savings Scheme (SCSS) – up to 8.2% interest for elderly people
All these are fully government backed and give much higher returns than fixed deposits (FD).
So who is late? Now withdraw your money from Fixed Deposit (FD) and invest it in these best options and beat inflation.