Top fixed income schemes in India providing high returns: From RBI bonds to post office schemes and more

Fixed Income Schemes: In the last few years, investing in fixed income schemes has become a better option than investing in equity markets, after the Reserve Bank of India (RBI) increased the repo rate, resulting in higher returns for investors in fixed income schemes. Schemes like fixed deposits offered by banks and small finance banks, post office schemes, RBI bonds, and mutual funds are now providing higher returns than before, making them an attractive investment option for many.

The returns on government schemes and mutual funds have seen an increase in the last 1 to 10 months, prompting financial advisors to recommend investing in them. With the recent increase in tax exemption limits, it is expected that more people will invest in schemes like mutual funds. Let's take a look at the fixed income schemes that have emerged as better competitors to the equity market.

Bank and Small Finance Bank Fixed Deposit is one such scheme where investors can get an average interest of 3.50 to 9 per cent on different tenures with good liquidity. However, some banks may charge a fee of 0.5 per cent to 1 per cent for withdrawing money from these accounts.

Corporate Fixed Deposit, on the other hand, requires investors to keep their money invested for at least one month to three months, or they will be subject to a penalty. Returns on tenures from one year to ten years range from 6.9 to 9.05 per cent.

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RBI Bond is a safe investment option with a maturity period of seven years, and investors receive a return of 7.35 percent. Post Office Scheme is another risk-free option, but investors cannot withdraw their money before the lock-in period ends, and they may have to pay a fee for early withdrawals. On maturity, investors receive returns ranging from 6.6 percent to 7 percent on tenures from one year to five years.

The Senior Citizen Saving Scheme is ideal for people aged 60 years and above, with a maturity period of five years, and an annual interest of 8 per cent. Public Provident Fund has a maturity period of 15 years and allows any citizen to invest up to Rs 1.5 lakh annually. Investors receive a tax-free interest rate of 7.1 percent, and partial withdrawals are allowed.

Mahila Samman Saving Certificate is a scheme that will be available from April 2023, and investors can invest up to Rs 2 lakh. Partial withdrawals are allowed under this plan.

Investing in fixed income schemes has become a better option for many investors due to the higher returns and safety they provide. It is advisable to consult a financial advisor before investing in any scheme and assess the risks involved. With proper research and analysis, fixed income schemes can provide good returns while ensuring safety and security for your investment.