Not only bank FDs, there is no need to worry about losing money on these investments either, you will get a guaranteed return on maturity.

New Delhi. Whenever there is talk of savings, the name of fixed deposit i.e. FD of banks definitely comes up. Your investment in Fixed Deposit is safe and you also get guaranteed returns. Currently, an insurance cover of up to Rs 5 lakh is available on Bank FDs in India through the government organization DICGC. This insurance covers deposits up to Rs 5 lakh of each investor in case of bank default.

Do you know that apart from bank FD, there are many investment options for investors in the market in which they can invest money and earn good returns on maturity. Apart from this, the investment in them is also safe. Let us know about some such fixed income instruments.

Recurring Deposit (RD)
Recurring Deposit (RD) is an investment vehicle in which an investor deposits a fixed amount into an account every month. Regular deposit of small amount in RD can earn good returns. In this, higher interest is available as compared to normal savings deposits.

Public Provident Fund (PPF)
Public Provident Fund (PPF) is one of the popular small savings schemes in the country. PPF scheme is a scheme that gives best returns in long term. The scheme is currently offering an interest rate of 7.1 percent. The most important thing about PPF is that it is included in the EEE scheme of the government. EEE stands for Exempt. The amount deposited in it, the interest received and the amount received on maturity are completely tax free.

Post Office MIS (POMIS)
Monthly income can be arranged through Post Office Monthly Income Account (POMIS). Currently, interest is available at the rate of 7.4%. Interest income starts from the next month after the lump sum investment in this scheme. Under this scheme, you can open an account with an investment of just Rs.1000.

National Savings Certificates (NSC)
National Savings Certificate (NSC) is a fixed income investment scheme. In this government scheme, you can open an account with a minimum deposit of Rs.1000 only. The scheme matures in 5 years and one gets the benefit of compound interest. Talking about the interest earned by investors opening NSC account, it is currently 7.7%.

Tags: Bank FD, FD Rates, Fixed Deposit