Investment Tips: These five investment options are giving more returns than bank FD, know what are the benefits

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Small finance banks offer significantly higher interest on deposits than major banks. Small finance banks offer interest on FDs between 8 and 9 percent. Investors in FDs of these banks can get good returns.


New Delhi, Business Desk. Fix Deposit (FD) has been a very popular investment option among Indians. Especially senior citizens are seen investing in FDs. The reason for this is that it is a relatively safer investment option. But interest rates on FDs have fallen considerably for the last two years. Interest rates on FDs of major banks have touched a 12-year low. This is why FDs are slowly losing their appeal and people are looking at other investment options. Let us know about such investment options.


National Savings Letter (NSC)

The National Savings Certificates (NSC) is currently offering a 6.8 percent interest rate to customers. It is payable at maturity. The minimum amount to open an account in this scheme is Rs 1,000. Minors over 10 years of age can also purchase NSC. Post office savings scheme NSC is quite popular among investors due to its fixed-income portfolio. These certificates are safe and useful for those who want the protection of capital.

Kisan Vikas Patra (KVP)

Kisan Vikas Patra (KVP) is currently offering a 6.9 percent interest rate to customers. The minimum amount to open an account in this scheme is Rs 1,000. This is a fairly good savings scheme in India. Investment in this scheme is completely risk-free. There is no upper limit for investment in this scheme.

Corporate Fix Deposit (Corporate FD)

Corporate fixed deposits offer higher returns than bank FDs. Corporate FDs give 7 to 8 percent annual returns. However, corporate FDs carry more risk than bank FDs. This can prove to be a better option for those who are not willing to invest in equity mutual funds for higher returns.

Senior Citizen Savings Scheme (SCSS)

The Senior Citizen Savings Scheme (SCSS) is currently offering a 7.4 percent interest rate to customers. The minimum amount to open an account in this scheme is Rs 1,000. A person 60 years or older can invest in SCSS. The investor can operate more than one account with the individual or spouse in the scheme. The maturity period of this scheme is 5 years. In this scheme, the account can be extended for three years after maturity.

Small Finance Bank FD

Small finance banks offer significantly higher interest on deposits than major banks. Small finance banks offer interest on FDs between 8 and 9 percent. Investors in FDs of these banks can get good returns.