Want to get better returns than fixed deposits? Check these 4 options!
Fixed deposits (FD) have always been considered a safe investment option, but these days, banks have reduced interest rates, due to which people are turning to other options to get higher returns. I think, if you keep your money only in FD, you will not benefit much. Come on, today I will tell you 4 different investment options that give better returns than FD, which can be useful for you!
Mutual Funds
Mutual funds are where your money is given to experts to invest, who invest it in shares, bonds and other assets. It has higher risk than FD, but it can give good returns for long-term investment.
- Advantage: If you are expecting a return of 10-12%, then equity mutual funds are a good option. With SIP (Systematic Investment Plan), you can start with a small amount.
- Example: If you invest Rs 5,000 in SIP every month and get 10% return, your money can reach 22-25 lakhs in 15 years!
- Remember: Markets fluctuate, so you need some patience.
Sovereign Gold Bonds (SGBs)
Gold has always been a safe and reliable investment option. Sovereign Gold Bonds are bonds issued by the government, in which you get 2.5% interest in addition to the increase in the price of gold.
- Advantage: Higher returns than FD and tax benefits (under Section 80C). Your investment increases as the price of gold increases.
- Example: If you invest Rs 1 lakh for 5 years and the price of gold increases by 50%, you can get Rs 1.5 lakh + 2.5% interest (about Rs 12,500)!
- Important: These bonds are for 8 years, but can be withdrawn only in the 5th year.
Read this: SIP with IndusInd Bank
Real Estate Investment Trusts (REITs)
Investing in real estate has become easier now, because REITs give you a small stake in a large property. These trusts share the rent and profits of commercial properties with investors.
- Advantage: You can get 6-8% annual returns and this option is more attractive than FD. There are less fluctuations in the market.
- Example: If you invest Rs 1 lakh and get 7% returns, you will get Rs 7,000 per year, which is more than 5-6% of FD.
- Advice: Invest only after knowing this, because the property depends on the market.
National Pension System (NPS)
The National Pension System is a pension scheme, which is good for long-term investment. In this, your money is invested in shares, bonds and government securities.
- Benefits: You can get 8-10% returns and get tax deduction of up to 1.5 lakhs under Section 80C. This is a good place for retirement.
- Example: If you invest Rs 50,000 every year and get 8% returns, you can build a fund of about 25-30 lakhs in 20 years.
- Remember: This money cannot be withdrawn till retirement, so planning is required.
My thoughts!
Keeping money in FD is safe, but in today’s time when inflation is increasing, it is not enough to be satisfied with just 5-6% interest. I think, if you are ready to take some risk, then options like Mutual Funds or NPS can be good for you. I myself have started SIP with a small amount and am gradually seeing the benefits. You too should take this decision according to your needs and risk tolerance. If you have any doubts, be sure to ask me, I’ll explain in simple terms!scheme is for you! Go to PM-Vidyalaxmi portal today and apply. If you have any doubts, ask me, I will explain in simple words!
Know: SBI RD Interest Rates
FAQ:
1. What are better investment options than fixed deposits?
Options like Mutual Funds, Sovereign Gold Bonds, REITs, and NPS offer 6-12% returns, surpassing FD’s 5-6% interest, with varying risk levels.
2. How do Mutual Funds give better returns than FD?
Equity Mutual Funds can yield 8-12% annually through SIPs, leveraging market growth, though they carry higher risk than FD’s guaranteed returns.
3. What is Sovereign Gold Bonds and its return potential?
SGBs offer 2.5% interest plus gold price appreciation (e.g., 50% gain on ₹1L in 5 years), beating FD returns with tax benefits.
4. Are REITs a good alternative to fixed deposits?
Yes, REITs provide 6-8% annual returns from commercial property rentals, offering steady income with less market volatility than FD.
5. How does NPS compare to fixed deposits?
NPS offers 8-10% long-term returns with tax benefits under Section 80C, ideal for retirement, unlike FD’s lower, fixed returns.