Want Better Returns Than FDs?
These 3 Government Schemes Can Be a Safe Option
Even today, many people prefer Fixed Deposits because they are considered one of the safest investment options.
In an FD, the risk of losing money is very low.
However, many investors feel that FD interest rates are not high enough.
Because of this, some people start investing in risky or unsecured schemes for higher returns.
But there are certain government-backed options that can offer better returns than FDs while still keeping your money safe.
Let’s look at three government schemes that provide good returns and strong security.
National Pension System (NPS)
The National Pension System is a retirement-focused investment plan supported by the Government of India.
In this scheme, your money is invested in a mix of government bonds and the stock market.
A part of the investment is used to build your pension for retirement.
You can withdraw money after the age of 60, and the account can remain active until the age of 70–75.
Investors can get returns of around 8 percent, along with tax benefits.
RBI Floating Rate Savings Bonds
Another safe option is the RBI Floating Rate Savings Bonds issued by the Reserve Bank of India.
These bonds currently offer interest of up to 8.05 percent.
The interest rate is called “floating” because it can change from time to time based on market conditions.
Investors can buy these bonds easily through the RBI Retail Direct platform.
They are considered as safe as FDs but often provide higher interest.
National Savings Certificate (NSC)
The National Savings Certificate is another popular government-backed investment scheme.
It is a long-term savings option with a maturity period of 5 to 10 years.
The scheme currently offers an interest rate of around 7.7 percent.
One of its biggest benefits is tax savings.
Investments in NSC qualify for tax deductions under Section 80C of the Income Tax Act.
You can start investing in this scheme with just ₹1,000, making it a good option for small and long-term investors looking for safe returns.