However, while chasing higher returns, you should not ignore safety or tax implications.
ET Wealth explores various debt products to help you choose the one most suitable.
1. 5-year bank fixed deposits
Caution: Smaller banks offer better rates. However, weigh the risks before investing.
2. Tax saving fixed deposits
Caution: Smaller banks offer better rates. However, weigh the risks before investing.
3. 5-year company deposits
Caution: Risk increases with smaller banks, but risks multiply with smaller and weaker companies. So, restrict investments only to AAA rated companies.
4. Senior Citizens’ Savings Scheme
5. Sukanya Samriddhi Yojana
6. Public Provident Fund
7. National Savings Certificate (NSC)
8. Voluntary Provident Fund
9. Listed tax-free bonds
10. RBI bonds
11. Debt mutual funds
12. Pradhan Mantri Vaya Vandana Yojana
Note: Though a pension plan, this works like an FD; Invested amount returned after 10 years or at the death of insured.
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