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a savings account; there are no market risks involved, one is aware of the maturity amount, and the investment can be withdrawn before maturity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 options, 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 The tenure of a public provident fund is 15 years, although money can be withdrawn before certain conditions.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 who are ready to invest over an extended period of time and are concerned more about safety than returns. They guarantee higher returns than bank deposits once tax adjustment is taken into account. 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 3 clicks, you can avail your money.


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 also offers additional advantages like flexibility in redeeming parts of the investment as per your requirement and instant liquidity. However, note that unlike fixed deposits that offer assured returns, equity investments assure no fixed returns.

You could dent your principal amount depending on the stock market fluctuations. Fixed deposits from NBFCs like Bajaj Finance are a good option in that case. 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, which translates to the same redemption and liquidity flexibility available 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 come to an informed decision based on their capital and investment duration. These ideas ensure diversification of your investments and provide higher returns, making them a top contender for your capital.

Guide to Investment

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