For investors concerned about the fluctuations of the stock market, fixed income instruments offer reliable options that promise good returns while ensuring capital safety.
These investments not only provide attractive returns upon maturity but also facilitate regular income generation.
Top Fixed Income Investment Options
Here are several popular fixed income instruments that can help you achieve financial security:
1. Bank Fixed Deposits (FDs)
Fixed deposits are one of the most favored investment choices. With FDs, the interest rate is locked in at the time of investment, guaranteeing fixed returns.
Deposits of up to Rs 5 lakh are government-backed, making this investment option secure and appealing.
2. Recurring Deposits (RDs)
Recurring deposits allow investors to regularly deposit small amounts, offering higher interest rates than standard savings accounts.
RDs encourage saving habits while ensuring decent returns, making them suitable for those with limited incomes.
3. Public Provident Fund (PPF)
The Public Provident Fund (PPF) is a long-term savings scheme with a maturity period of 15 years, which can be extended in five-year blocks.
Currently, it offers an interest rate of 7.1% per annum.
Contributions to the PPF are tax-deductible, and the maturity amount is tax-free, making it an excellent retirement savings option.
More Fixed Income Schemes
4. Post Office Monthly Income Scheme (POMIS)
The Post Office National Savings Monthly Income Account (POMIS) enables investors to secure monthly income through a fixed deposit amount.
Currently, it offers an interest rate of 7.4%, making it ideal for individuals seeking a stable income source while preserving their capital.
5. RBI Floating Rate Savings Bonds
RBI’s floating rate savings bonds have a maturity period of seven years and currently yield an interest rate of 8.05%.
Investment starts at a minimum of Rs 1,000, with no upper limit, and can be done via RBI’s retail direct portal.
6. National Savings Certificates (NSCs)
National Savings Certificates (NSCs), issued by the government, currently provide an interest rate of 7.7%.
They also offer tax deductions under Section 80C. With a fixed maturity period, NSCs are a secure investment choice with reliable returns.
