INVESTMENT OPTIONS TO EARN BETTER THAN BANK FD RETURNS.
                      INVESTMENT OPTIONS TO 
EARN BETTER THAN BANK 
FD RETURNS
INTRODUCTION
• Low Bank fixed deposit (Bank FD) returns have made them 
unattractive for most investors. 
• Bank FD interest rates have fallen to the levels as seen in 
2004-05.
Source: Livemint
BANK FD
• SBI Bank is offering interest rates between 2.9% and 5.4% across different 
tenures. 
• The current bank FD interest rates are almost at par with the savings bank 
account. 
Source: Livemint
ALTERNATIVE OPTION
• In fact for shorter duration, the bank FDs offer lower interest than bank 
savings account. 
• You can still earn slightly higher returns than a bank deposit with certain post 
office saving schemes, NPS and bank FDs of smaller banks.
Source: Bankbazaar
POST OFFICE NATIONAL SAVINGS 
MONTHLY INCOME ACCOUNT (POMIS):
• POMIS is a five-year investment with a maximum cap of ₹4.5 lakh under 
single ownership and ₹9 lakh under joint ownership. 
• POMIS offers an interest rate of 6.6% payable monthly. POMIS has a maturity 
tenure of five years.
Source: Paisabazaar
7.15% RBI FLOATING RATE SAVINGS 
BONDS 
• RBI Savings Bond have a maturity of seven years. The interest rate for the 
period July 1 to December 31, is 7.15% which will be payable on January 1 
next year. 
• The interest rate on RBI Floating Rate Savings Bond will be reset every six 
months. 
Source: Inventiva
NPS TIER II:
• NPS Tier II is a voluntary account and having an NPS Tier I account is a 
prerequisite to open Tier II Account. 
• You can invest and redeem from Tier II Account at your discretion provided 
you are not a Central Government employee claiming deduction under 
Section 80C for your contributions to Tier II Account.
Source: ET Money
5-YEAR NATIONAL SAVINGS 
CERTIFICATES (NSC):
• Another post office savings scheme, NSCs are quite popular among the HNIs 
to diversify their fixed income portfolio. These certificates are secure and 
useful for those who seek safety of capital. 
• NSCs at present offer interest rate of 6.8 % compounded annually but 
payable at maturity. NSC deposits qualify for tax rebate under Sec 80C of IT 
Act. 
Source: Livemint
SENIOR CITIZEN SAVINGS SCHEME 
(SCSS):
• An individual of age 60 years or more can invest in SCSS. At present, SCSS 
pays an interest at the rate 7.4  % per annum. SCSS allows only one deposit 
not exceeding Rs15 lakh. 
• The depositors may operate more than one account in individual capacity or 
jointly with spouse. Maturity period is 5 years. 
Source: Livemint
SMALL BANK FDS
• Some small finance banks (SFBs) offer interest rates ranging between 8% to 
9% on select fixed deposits (FDs). 
• The interest rates offered by these banks are certainly lucrative, as compared 
to other top lenders like State Bank of India (SBI), HDFC Bank, ICICI Bank, Axis 
Bank and others.
Source: The Finapolis
KISAN VIKAS PATRA (KVP) :
• At a fixed interest rate of 6.9 % compounded annually, a single individual or 
an adult on behalf of a minor can invest in KVPs. 
• Investment can also be done in joint holding. KVP can be purchased from any 
Departmental Post office. 
Source: Jagran Josh