SBI, BoI Slash FD Rates – 10 Alternate Investment Options With High Returns

The Reserve Bank of India (RBI) has cut the repo rate by 25 basis points. The new repo rate is now 6 per cent. This has led many banks to reduce their Fixed Deposit (FD) interest rates.

For example, the State Bank of India (SBI) lowered FD rates by 10 basis points for deposits below Rs 3 crore. A one-year FD now earns 6.7 per cent instead of 6.8 per cent. A two-year FD earns 6.9 per cent instead of 7 per cent. SBI has also stopped its popular Amrit Kalash FD.

Bank of India (BoI) also changed its FD rates. Some FD rates went down, while a few increased slightly.

This change is bad news for senior citizens and safe investors. Many of them depend on FDs for regular income.

However, there is good news too. Many other safe investments offer better returns and benefits. Here are ten options you can consider:

National Savings Certificate (NSC)

NSC is a government scheme. You can buy it at post offices. It gives a 7.7 per cent return per year (as of April 2025). The lock-in period is 5 years. It is safe and gives tax benefits under Section 80C.

RBI Floating Rate Savings Bond (FRSB)

These are bonds issued by RBI. They pay interest every six months. The current interest rate is 8.05 per cent. The rate changes based on NSC rates. These bonds are safe and have a 7-year lock-in.

Government Securities (G-Secs)

These are bonds issued by the government. You can choose short-term or long-term options. They are very safe and give fixed returns.

Lease Investment

You can buy a property and rent it out. Rent gives monthly income. Usually, the tenant pays for maintenance and taxes. It can be a good long-term investment.

Corporate Bonds

These are bonds issued by companies. They give higher returns than FDs. Choose high-rated bonds (like AAA) to stay safe.

Debt Mutual Funds

These funds invest in government and company bonds. They usually give better returns than FDs. They also offer flexibility and easy withdrawal.

Recurring Deposits (RDs)

RDs help you save every month. They offer fixed interest. Returns are safe and predictable.

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Systematic Withdrawal Plan (SWP)

This is a way to get regular income from mutual funds. You can withdraw a fixed amount every month. It gives flexibility and can offer tax benefits.

Pension Schemes

Pension plans give regular income after retirement. They are safe and help in retirement planning.

Gold Investments

Gold protects your money from inflation. You can invest in physical gold, Gold ETFs, or Sovereign Gold Bonds. Gold gives safety and sometimes good returns.

Disclaimer: The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds