Financial Planning: Forget FDs, invest in these 5 schemes; profits guaranteed..

Indian investors have always considered fixed deposits (FDs) to be the safest and most reliable investment. They offer neither market fluctuations nor the risk of capital loss. However, times have changed. With rising inflation and a rapidly changing market, it's no longer wise to keep your money solely in FDs. If you want higher interest rates, better liquidity, and security, you now have several excellent options. Let's explore seven schemes that can offer you greater returns than FDs.

Treasury Bills
If you're looking to invest for a few months, Treasury Bills (T-Bills) are an excellent option. They are issued for 91, 182, and 364-day periods. They don't pay interest, but are purchased at a lower price, and the full amount is received upon maturity. A bill purchased for ₹990 would yield ₹1,000 upon maturity. These are extremely safe investments, backed by a 100% government guarantee.

RBI Floating Rate Savings Bonds
These bonds, issued by the Reserve Bank, are for a 7-year term and currently offer an interest rate of 8.05%. The special thing is that their interest rate is updated every 6 months, meaning if market rates rise, your returns will also increase. Therefore, these bonds are an ideal option for investors looking to invest for the long term.

Corporate Bonds
Companies issue corporate bonds to raise funds for their businesses. They offer interest rates ranging from 9% to 11%, which is significantly higher than bank FDs. However, there is some risk involved; if a company defaults, losses may be incurred. Therefore, be sure to check its credit rating (AAA, AA, A, etc.) before investing.

Corporate Fixed Deposits
In corporate FDs, you lend money to companies for a fixed period of time and receive fixed interest in return. These can offer returns up to 1.5% or 2% higher than bank FDs. For example, NBFCs like Bajaj Finserv, Shriram Finance, or Muthoot Capital offer interest rates of 8.5% or more. However, these are not government-insured, so invest only in AAA-rated companies.

Government Bonds
Government bonds are fully backed by the central government, meaning they carry virtually no credit risk. They are considered best for those seeking stable and assured returns. They typically yield around 7%. However, changes in interest rates can cause their prices to fall slightly, making them best for long-term investments.

Disclaimer: This content has been sourced and edited from News 18 hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.