investment planning
Indian investors have long considered fixed deposits (FD) as the safest investment. There is less risk in FD and the interest is fixed in advance. But in today’s time, where inflation is increasing rapidly and the market is constantly changing, keeping money only in FD is no longer that beneficial. If you want higher returns, better liquidity and almost zero risk, then there are many options which can prove to be much better than FD.
Government bonds: investments guaranteed by the government
Government bonds are best for those who want consistent returns without risk. These are instruments guaranteed by the Central Government, hence there is almost no possibility of losing money in them. Although their prices may go up or down due to changes in interest rates, they are considered very stable options for long-term investors.
Treasury Bills: Safe and fast returns of a few months
If you are looking for a safe investment for a short period of 3 months to 1 year then treasury bills are a great option. Interest is not earned on these, rather they are purchased at a low price and the full value is returned on maturity.
RBI Floating Rate Savings Bond
The tenure of these bonds issued by the Reserve Bank of India is 7 years and currently around 8.05% interest is being given on them. The special thing is that their interest rate can change every 6 months. If interest rates increase in the market, the returns on these bonds also increase. This is a great opportunity to get both government security and high rates together.
Corporate Bonds: Higher returns than FD
In corporate bonds, companies run their business by taking money from investors and give attractive interest in return. Generally one can get returns up to 9%-11% on these. But if the position of the companies is not strong then there is risk. Therefore, choose only bonds of good rated companies like AAA, AA. Nowadays it has become easy to invest in platforms like Grip, Wint Wealth.
Post Office Government Schemes
If you just want a safe government option, post office schemes are the most reliable option. The interest rates in various post office schemes are as follows: NSC: Around 7.7% interest, Sukanya Samriddhi Yojana: 8.2% interest (for girl students) SCSS: Up to 8.2% interest for senior citizens.