Fixed Deposits (FDs) have always been a safe investment choice, but with interest rates hovering around 7–8%, they may no longer be the best option. Government-guaranteed bonds are now offering up to 9.9% returns – with safety comparable to FDs and better earnings potential. Here’s why they deserve a closer look:


1. Higher Returns Than Traditional FDs

  • Most bank FDs offer 7–8% returns at best.
  • Government-guaranteed bonds can offer up to 9.9%, significantly boosting your overall earnings.


2. Backed by State government Assurance

  • These bonds are guaranteed by states like Andhra Pradesh, Uttar Pradesh, and Kerala.
  • Government backing ensures timely payment of interest and principal, making them as safe – if not safer – than FDs.


3. Attractive Bond Options to Choose From

  • Andhra Pradesh Mineral Development Corporation Ltd – 9.30% coupon rate; matures May 2028.
  • Uttar Pradesh Power Corporation Ltd (UPPCL) – 9.7% return; matures march 2028.
  • Kerala Infrastructure Investment Fund Board (KIIFB) – Multiple bonds with 9.4% to 9.67% returns, maturing between 2031–2035.
  • Kerala State Financial Corporation (KSFC) – 9.42% return; matures december 2033.


4. TDS-Free Income for Higher Net Returns

  • Unlike bank FDs where TDS is deducted, government bonds do not have TDS, increasing your effective earnings.


5. Simple Online Investment Process

  • Register on trusted bond platforms using your mobile number and email.
  • Complete KYC (PAN, Aadhaar, bank details).
  • Browse available bonds, check coupon rates and maturity dates.
  • Buy directly using your demat account (or open one if needed).


6. Long-Term Wealth Creation

  • Bonds with maturities up to 10+ years help in building a stable and long-term financial portfolio.
  • Higher returns over time mean better compounding and stronger future savings.


7. Low-Risk Alternative to Market Volatility

  • Unlike equities or mutual funds, these bonds are low-risk instruments with assured interest.
  • They provide a stable income stream even during market fluctuations.


Key Takeaway

With 9.9% returns, government-guaranteed bonds present a compelling case over traditional FDs. They offer higher earnings, government security, and TDS-free income, making them a smart choice for investors seeking safety with better returns.

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G GOWTHAM

29/08/2025 12:54 PM