Bank FDs are the most popular investment options in India as it’s considered safe. The invested amount of money doesn’t fluctuate and the maturity value is fixed. There is a fixed rate of interest. People who are averse to risk and they want to generate a corpus after some years go for the FDs. Retired persons are the most risk-averse people and so they choose the FDs. Different banks offer different interest rates on FDs. There are companies too that give you an FD facility. Those are called NBFCs and you can check with them to know the FD interest rate. For example, you can also check with Bajaj Finance FD rates. Bajaj finance is an NBFC that is well-known in India.

FD provides an interest rate close to the prevailing rate of inflation. It cannot beat inflation after the FD accumulation is taxed. If you keep withdrawing the interest earned, the invested capital will gradually lose its purchasing power. The principal amount remains intact. Here, losing purchasing power is a serious problem with the FD. This phenomenon especially affects the retired persons who depend so much on their investment and interest earned. So, you should choose your FD with care. There are types of FDs offered by different companies and some of them are relatively better than the rest. HDFC bank is one of the leading banks of India and also has a facility of FD. While exploring various FD rates in the market, you can check HDFC FD rates also.

You may explore the following three FDs to beat the low-interest rates

  1. Mahindra and Mahindra Financial Services Ltd (MMFSL) Fixed deposits

There is a 7.2% interest rate on FD from MMFSL on a deposit of one year. There is a 7.3% rate of interest on an 18-month deposit, 7.6% on a three-year deposit, 7.7% interest on a four-year deposit, and 7.8% on a five-year deposit. This rate of interest rate is far greater than that offered by other banks of the country. The deposits of Mahindra and Mahindra are rated AAA. This certificate means the deposits are of high safety. If you are a senior citizen, you are entitled to an additional 0.25% rate of interest. There is a greater interest rate for those depositing for a short period.

  1. LIC Housing Finance Fixed Deposits

This deposit also has been rated AAA. That means it is safe and secure. LIC is a well-known name and has a strong brand image. This company provides a rate of interest of 7 % on a 12-month deposit, 7 % on an 18-month deposit, and 7.10 % on a 3-year deposit. There is an additional 0.25 % interest rate for senior citizens. You will do better if you keep your deposit for a shorter duration. If the interest rate rises, you won’t stay locked in for a longer period at a lower interest rate.

  1. Bajaj Finance

There is a rate of interest of 6.9 % for one year. If you keep the deposit for 2-years, the interest rate will be at the rate of 7 %, and a deposit for a longer period will fetch an interest rate of 7.10 %. Bajaj enjoys a commendable reputation. Its deposits are safe. You should remember that there will be a TDS deduction in case the amount of interest earned per year exceeds Rs 5000. Its deposit has been rated AAA. It makes the deposits relatively safer and more secure. If you are looking for a short-term deposit, you should go for Bajaj Finance Fixed Deposit.

  1. HDFC Fixed Deposits

HDFC is a very old housing finance company and it has HDFC banks under its banner. The interest rates offered by HDFC are 6.36 % on 1 and 2 years of deposit. For a longer period of deposit, the interest rates are @ 6.46 %. A fixed deposit with HDFC is better than other bank fixed deposits.

The Reserve Bank of India has reduced the repo rate. The banks also have cut their interest rates affecting people who depend on the FDs for income. There is a fall in the return of interest rates. Many senior citizens depend on the FDs for a regular income.

In this scenario of falling interest rates, you should look for other options. There are other investment options available to people. It is advisable to the senior citizens that they go for traditional investment schemes such as small savings schemes and PPF that offer greater interest rates.

Listed below are some investment options available that are giving a higher interest rate than other banks FDs:

Post Office Time Deposits (POTD)

Post Office time deposits offer 6.9 % interest on a period between 1 and 3 years. There is a rate of interest of 7.7 % for a five-year term. This rate is higher than that of SBI. SBI offers a rate of interest of 6.25 % for five years of FD. SBI offers an additional interest rate of 0.25 % for the senior citizens for the same period. These deposits are secured by a sovereign guarantee and are safer than bank FDs. The interest gained on these FDs is taxable as per the IT Act.

Senior Citizen Savings Scheme (SCSS)

Senior Citizen Savings Scheme is an attractive senior citizens’ scheme. These schemes are available with the post offices and the banks. You can invest up to Rs 15 lakh in this scheme. The interest rate offered by this scheme is 8.6%. The interest can be paid quarterly. This scheme is protected with Government backing, so the scheme is quite safe. The interest earned is taxable. You can avail of tax benefit up to Rs 50, 000 according to the IT Act.

Post office Monthly Income Scheme (POMIS)

If you are looking for a monthly income scheme, for you there is the Post Office Monthly Income Scheme (POMIS). The interest offered by this scheme is 7.6 % and you can invest up to 4.5 lakh in your account. And for a joint account, you can invest up to Rs 9 lakh. This scheme is for all.

RBI Savings bonds

RBI bonds are giving 7.75 % interest per year. You can invest any amount in these bonds. The tenure of these bonds is 7 years. You can earn your interest on the RBI savings bonds on a non-cumulative and cumulative basis. On a cumulative basis, the interest is paid with the principal when it is matured.