Higher returns than bank FDs with zero risk! Invest in these 4 schemes from SBI, the Post Office, and the RBI..

Better Options Than SBI FD: If you want to earn higher returns than a standard bank Fixed Deposit (FD) while keeping your hard-earned money safe, this information will be very useful to you. At the country’s largest bank, the State Bank of India (SBI), a standard FD with a tenure of 1 to 5 years currently offers an annual interest rate of approximately 6.05% to 6.40% for general citizens.

However, by investing wisely, you can earn an impressive interest rate of up to 8.2% through government-backed or banking options that are 100% secure and carry no credit risk. Let’s explore four excellent schemes—offered by SBI and the government—that can yield higher returns than a regular FD.

1. SBI Multi-Option Deposit (MOD) Scheme: Best for Emergency Funds

What is this scheme? It is a term deposit linked directly to your SBI savings account.

Why is it better than a standard FD? Typically, if you suddenly need money, you have to break your entire FD and pay a penalty. With the MOD scheme, however, any surplus funds above a set threshold are automatically swept into an FD. Whenever you withdraw money via an ATM or UPI, only the specific amount you need (in multiples of, say, ₹5,000) is withdrawn from your FD. You continue to earn full interest—at the same rate as a standard FD—on the remaining balance.

2. SBI Amrit Vrishti (Special 444-Day FD)

What is this scheme? This is a special fixed deposit scheme from SBI with a specific tenure of 444 days.

Why is it better than a standard FD? It offers a higher interest rate compared to a regular 1- to 2-year FD. It provides an annual interest rate of 6.45% for general citizens and 6.95% for senior citizens. And for super-senior citizens (aged 80+), a fixed interest rate of 7.05% p.a. is available. This is an excellent way to park funds for the medium term.

3. RBI Floating Rate Savings Bonds (FRSB) – 8.05% Interest

What is this scheme? These are sovereign bonds issued by the Reserve Bank of India (RBI) on behalf of the Government of India.

Why is it better than a regular FD? The interest rate is linked to the National Savings Certificate (NSC + 0.35%) and is revised every six months. It currently offers an annual interest rate of 8.05%, which is significantly higher than the 6.05% offered on a 5-year fixed deposit (FD) with SBI. Investments come with a 100% sovereign guarantee (zero default risk), and there is no upper limit on the investment amount.

4. Post Office Time Deposits and Senior Citizen Savings Scheme (SCSS)

What are these schemes? These are small savings schemes operated through India Post.

Why are they better than a regular FD? Post Office 5-year Time Deposits (TD) offer an annual interest rate of 7.50% (compared to 6.05% for an SBI 5-year FD) and also qualify for tax benefits under Section 80C. Meanwhile, the SCSS is arguably the best risk-free scheme in the country for senior citizens, offering a guaranteed interest rate of 8.20% p.a.

4 Options That Offer Better Returns Than Risk-Free Bank FDs