New Delhi: Fixed deposit (FD) is not only the best medium to get guaranteed returns, but it is also important in terms of peace of mind. Fixed deposits have been very popular among investment options. But even then it has been seen that due to low returns in bank FD, most of the investors want to invest their money elsewhere. The interest rate on fixed deposits (FD) has been falling for the last two years and has touched a 12-year low.
It may be noted that SBI Bank is offering interest rates between 2.9% and 5.4% in various tenures. Currently, bank FD interest rates are equivalent to savings bank account. Basically for short term, banks pay less interest than FD bank savings account. In such a situation, if you want to earn big profits by investing money in another investment scheme, then we have brought some better options for you.
Kisan Vikas Patra (KVP)
In Kisan Vikas Patra, your money doubles in a set period. This scheme is being offered to people in all post offices and big banks of the country. It is a better savings scheme offered by post offices in India. The scheme gives a notional return of 6.9% for the current October-December quarter. It is a completely risk-free investment. The interest rate on these deposits is announced every quarter by the government. The minimum required investment in this scheme is Rs 1000. There is no upper limit for investment in these schemes.
National Savings Letter (NSC)
It is very easy to buy a national savings card. It can be purchased from any post office. Long-term investments can be made in National Savings Certificates. Through this, the investor keeps getting returns at a fixed interest rate. NSC is currently paying 6.8% per annum, but it is payable at maturity. Minors over 10 years of age can purchase NSC. The Post Office Savings Scheme NSC is popular among investors for its fixed income portfolio. This certificate is safe and useful for those who want protection of capital.
Senior Citizen Savings Scheme (SCSS)
Senior Citizen Savings Scheme (SCSS) is a government supported savings scheme. In this, a person 60 years of age or older can invest in SCSS. Currently, SCSS pays interest at the rate of 7.4% per annum. Depositors may operate more than one account in a personal capacity or with a spouse. Its maturity period is 5 years. After maturity, the account can be extended for three more years.
Bank FDs still remain the first option of savings for many people. Some small finance banks (SFBs) offer interest between 8% and 9% on select FDs. The interest rates offered by these banks are certainly attractive compared to State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis Bank and other lenders. Senior citizens get 50 basis points more on these deposits than normal customers.
Corporate fixed deposit
Corporate FD is very similar to bank FD, but the risk is slightly higher in case of corporate FD as compared to bank FD. However, strong and highly rated companies have lower FD risk. For those looking for more guaranteed returns, corporate fixed deposits can be an option for bank fixed deposits. It gives 7-8% annual returns. Corporate FDs have a relatively high repayment risk, this can be a good option for those who are not willing to invest in equity mutual funds for higher returns.