Looking for alternatives to FD? Discover higher-return investment options in India. Explore debt funds, corporate FDs, and more for smarter savings.
Managing your finances effectively often involves exploring diverse investment options. While Fixed Deposits (FDs) like Bajaj Finance Fixed Deposits are a secure and predictable way to grow your savings, some investors may seek alternatives offering higher returns or greater flexibility. This article explores various FD alternatives to help you make informed financial decisions.
But if you want to invest in AAA-rated FDs by Bajaj Finance, you can check the rates and book an FD now!
Fixed Deposits are a popular choice for risk-averse investors due to their guaranteed returns and safety. However, they may not always align with your financial goals, especially if you are seeking higher returns, tax benefits, or better liquidity. Exploring alternatives can help diversify your portfolio and optimise your investments.
NSC continues to offer 7.70% p.a., with a 5-year lock-in. It is government-backed, low-risk, and qualifies for a tax deduction under Section 80C, though interest at maturity is taxable. Rates remain unchanged for the January–March 2026 quarter.
Investing in property to lease out can generate inflation-adjusted rental income and potential appreciation. It suits moderate-risk investors seeking passive income but involves significant capital, property maintenance, taxation on rental income, and vacancy risks.
PPF offers 7.10% p.a. as per the latest small savings rates for January–March 2026. It has a 15-year lock-in, tax benefits under Section 80C, and tax-free interest and maturity proceeds, making it a strong long-term low-risk option.
G-Secs are sovereign bonds issued by the Government of India, providing very high safety and fixed returns if held to maturity. They include short-term Treasury Bills and long-term bonds. Prices may fluctuate if traded before maturity, influenced by interest rate changes and economic factors.
Corporate bonds typically offer higher yields than bank FDs, but carry credit risk tied to the issuer’s financial health. Investors should check credit ratings and maturity profiles before investing. These are suited for those seeking better returns with moderate risk tolerance.
Debt mutual funds invest in government and corporate bonds and money market instruments. They offer diversification and potential for higher post-tax returns versus FDs, but returns are not guaranteed and depend on interest rate movements and credit quality.
Corporate FDs by companies/NBFCs generally offer higher rates than bank FDs. However, they carry higher credit risk. Bajaj Finance Fixed Deposits, with [ICRA]AAA(Stable) and CRISIL AAA/STABLE ratings, are among the safest in this category with attractive returns.
Open an FD account and start earning up to 7.30% p.a. returns.
Recurring deposits let you save fixed amounts monthly and earn interest similar to term deposits. Post Office RDs currently offer 6.7% p.a. and can be opened for a range of tenures (minimum six months in banking RDs). They are ideal for disciplined saving with predictable returns.
RBI Floating Rate Savings Bonds (2020) offer 8.05% p.a. interest for January–June 2026, linked to NSC rates plus a 0.35% spread. Interest is paid semi-annually and fully taxable. Premature redemption is allowed under specific conditions with a penalty.
FMPs are closed-ended debt funds with a fixed tenure that invest in instruments maturing alongside the plan. They aim to deliver predictable returns and may be tax-efficient for long durations, but offer lower liquidity and returns are not guaranteed like FDs.
While exploring alternatives to Fixed Deposits can enhance your portfolio, it is essential to balance risk and return based on your financial goals. Bajaj Finance Fixed Deposits remain a secure choice for predictable returns, offering flexible tenures and high credit ratings.
Start your FD with as little as Rs. 15,000 today and grow your savings confidently.
The best alternative depends on your financial goals. Debt funds offer higher returns, while PPF provides tax savings and long-term safety.
RBI bonds provide inflation-adjusted returns and semi-annual payouts, but they lack the fixed, predictable interest rates of Bajaj Finance FDs.
Alternatives like loans against FDs or other investment options offer liquidity without penalties, preserving your original FD investment.
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