Five safe fixed-income investment options that offer guaranteed returns (2024)

Fixed-income investment options are investments that provide a fixed return over a specified period of time. For investors, it's crucial to know that the objective of these debt instruments is not to maximize returns, but to ensure the safety of the capital with guaranteed gains.

Fixed-income investment options

These types of instruments include bonds, fixed deposits, government-backed schemes, and Post Office Savings Schemes, to name a few.

Here are five safe investment options for fixed-income

RBI Floating Rate Savings Bonds

RBI Savings Bond has a maturity of seven years. At present, the RBI Floating Rate Savings Bond offers an interest rate of 8.05%. An investor can invest in bonds for a minimum sum of Rs1,000. There is no maximum limit.

The Reserve Bank of India (RBI) has said retail investors can subscribe to Floating Rate Savings Bonds, 2020 (Taxable) through its Retail Direct portal. Earlier, retail investors were allowed to invest in central government securities, treasury bills, state government securities, and sovereign gold bonds through the Retail Direct portal.

National Savings Certificates (NSC)

NSCs are secure and useful for those who seek the safety of capital. NSCs at present offer an interest rate of 7.7 % Deposits qualify for tax rebate under Section 80C of IT Act.

Post Office National Savings Monthly Income Account (POMIS)

POMIS is a five-year investment with a maximum cap of ₹9 lakh under single ownership and ₹15 lakh under joint ownership. POMIS offers an interest rate of 7.4% payable monthly.

Public Provident Fund (PPF)

PPF is a popular long-term savings scheme in India. At present, it offers an interest rate of 7.1%. It is fully secured with a government guarantee. PPF has a maturity of 15 years which can be further extended by five more years. The contribution to PPF is eligible for deduction under Section 80C of the Income Tax Act.

Bank Fixed Deposits (FDs)

Bank FDs are the most popular investment option, especially among senior citizens in our country. In case of a bank failure, bank deposits up to ₹5 lakh are insured by the Government. SBI and ICICI Bank offer 3%-7.1%, HDFC 3 to 7.2%, and Axis Bank 3.5 to 7%.

Disclaimer: We advise investors to check with certified experts before taking any investment decisions.

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