If not Bank Fixed Deposits, where to Invest?

A fixed deposit (FD) is believed to be the safest investment a person can make. The interest rate offered on FDs is higher than on a savings account; there are no market risks involved, one is aware of the maturity amount, and the investment can be withdrawn before maturity

Fixed Deposits

Yet, some seek alternate investment options in the search for higher yields. For those in search of such opportunities, the best ideas today to invest in include:

Public Provident Fund

PPF is one safe investment option. The tenure of a public provident fund is 15 years, although money can be withdrawn before certain conditions. PPF guarantees high returns as an investor earns compound interest through a PPF account, which is tax-free too. Investments in PPF up to Rs 1,50,000 can be counted for tax rebate u/s 80C of the Income Tax Act.

Tax-free bonds

Tax-free bonds are an attractive option for investors ready to invest over an extended period and are concerned more about safety than returns. They guarantee higher returns than bank deposits once tax adjustment is considered. Perhaps the only disadvantage of tax-free bonds is that they can’t be redeemed in case of emergency capital requirements.

However, if you need faster access to money, pre-approved offers by Bajaj Finserv help you save time. In just three clicks, you can avail your cash.


Equity is one of the most attractive options for investors in the startup culture today. Investors with long-term holding periods consider it as a medium for robust gains. Along with the high returns, equity offers additional advantages like flexibility in redeeming parts of the investment per your requirement and instant liquidity. However, unlike fixed deposits offering wide-assured returns, equity investments ensure no fixed returns.

You could dent your principal amount depending on stock market fluctuations. Fixed deposits from NBFCs like Bajaj Finance are a good option. Bajaj Finance Fixed Deposit offers an interest rate of 7.85%, which can go up to 8.20% Interest Rate for senior citizens. Calculate your gains using the online Fixed Deposit Interest Calculator.

Income and arbitrage schemes of Mutual Funds

Equity mutual funds allow one to invest even a small amount of capital. In case you aren’t comfortable with the risks of the equity market and neither have an extended investing period, income and arbitrage schemes of mutual funds are worth consideration. While there are no guarantees, the post-tax returns are significantly higher than a bank fixed deposit. There are no lock-ins here, translating to the same redemption and liquidity flexibility in equity investments.

National Saving Certificate

A risk-free investment, National Saving Certificate (NSC) is a saving bond under the Indian Postal Service used for small and tax savings. With a 5-year fixed term, an NSC is a good option for short, low-risk investment and offers a compound interest rate close to 8%. An annual investment of up to Rs 1 lakh qualifies for the tax rebate, although there is no maximum limit.

With these options in mind, one can make an informed decision based on their capital and investment duration. These ideas ensure the diversification of your investments and provide higher returns, making them a top contender for your capital.

Guide to Investment

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