InvestorQ : What are some deposit options other than bank fixed deposits that could provide higher returns?
sanjana Tulsiani made post

What are some deposit options other than bank fixed deposits that could provide higher returns?

Answer
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Nikita Damle answered.
2 months ago


Due to so much volatility in the market conservative investors look for options that are safe and provide good returns. At this time, interest rates on bank fixed deposits have declined significantly and investors are looking for options that are better in terms of return while being safe. Here are some of the options that could be considered during this time:

Bajaj Finance: It offers an interest rate of 7.10% on fixed deposits for a tenure of 3 to 5 years. The minimum deposit amount is Rs. 25,000 and the company’s fixed deposits are AAA-rated.

YES Bank: This bank has recently gone under reconstruction and now it is backed by the State Bank of India, which means we can now consider it a safe investment option. It is providing an interest rate of 7% on its 2-3 year period fixed deposits.

IDFC First saving bank account: IDFC first is a well-capitalized bank and its fixed deposits are AAA-rated, which means risk on your investment is very low. It can provide interest rates of up to 7% on your fixed deposits of Rs 1,00,000. You can also withdraw money from your fixed deposit account in case of an emergency without paying any additional charges.

Mahindra Finance: It is offering some attractive deals for investors as online booking of fixed deposits can fetch investors’ interest at the rate of 8% on a 40-month deposit. The deposits of Mahindra Finance are AAA-rated and hence are secure. The interest rates offered on its cumulative scheme are 7.05 percent for 27 months, 7.20 for 33 months, and 7.30 for 40-month tenure.