Best schemes for investment.
Indian investors have always considered Fixed Deposit (FD) as the safest and most reliable investment. There are neither market fluctuations nor any risk of capital loss. But now times have changed. In the rising inflation and rapidly changing market, it is no longer wise to keep money only in FD. If you want to get more interest, better liquidity and security on your money, then now you have many great options. Let us know those 7 schemes which can give you more benefits than FD.
treasury bills
If you want to invest money for a few months, Treasury Bills (T-Bills) are a great option. These are issued for a period of 91, 182 and 364 days. Interest is not paid on these, rather they are purchased at a low price and the full amount is received on maturity. That means, on maturity of the bill purchased for ₹ 990, you get ₹ 1,000. These are extremely safe investments with 100% guarantee by the government.
RBI Floating Rate Savings Bonds
These bonds issued by the Reserve Bank are for 7 years and currently the interest rate on them is 8.05%. The special thing is that their interest rates are updated every 6 months, that is, if the rates increase in the market, your returns will also increase. Therefore, these bonds are the perfect option for investors who want to invest money for the long term.
corporate bonds
Companies issue corporate bonds to raise funds for their business. Interest on these ranges from 9% to 11%, which is much higher than bank FD. However, there is some risk in this, if the company defaults then there may be loss. Therefore, before investing, definitely check its credit rating (AAA, AA, A etc.).
Corporate Fixed Deposit
In corporate FD, you give money to companies for a fixed period of time and get fixed interest in return. You can get 1.5%-2% more returns on these than bank FD. Like NBFCs like Bajaj Finserv, Shriram Finance or Muthoot Capital are offering 8.5% or more interest. However, these do not have government insurance, so invest only with AAA rated companies.
government bonds
Government bonds are fully backed by the central government, which means the credit risk in it is almost negligible. These are considered best for those who want stable and assured returns. Usually the interest on these is around 7%. However, their prices may fall slightly due to changes in interest rates, hence they are best for long term investment.