Fixed Deposit (FD) vs NHAI Bond: Looking for better returns than what you can get from your Fixed Deposit (FD) account? The NHAI Bond could be the answer, if Union transport minister Nitin Gadkari is to be believed. 
Gadkari said last week that the bond issues planned by the National Highways Authority of India (NHAI) will yield better interest rates for the retail investors than banks savings. While addressing a gathering at an event to mark the 25th anniversary of National Stock Exchange (NSE) in New Delhi, the Union Minister said NHAI is looking for an 8 per cent return and this may even go higher. 

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The NHAI wants to raise around Rs 62,000 crore through bonds in the current financial year. In 2017-18, NHAI had raised around Rs 52,000 crore. With a number of massive infrastructure projects lined up, the future of NHAI Bond looks safe and it can give higher returns than a common fixed deposit scheme. 

The interest rates on Fixed Deposit accounts offered by some of the largest public and private sector banks hovers between 6-7 percent. The State Bank of India (SBI) offers 6.7-6.35% interest per annum. For 3-5 year term, SBI offers 6.80% interest and for 5-10 years, the rate is 6.85%. PNB offers 6.75% interest on deposits for 1-3 years, while Bank of Baroda offers 6.7 per cent interest rate on deposits for 1-5 years. 

As compared to the public sector banks, private sector banks are currently offering higher interest on FDs. 

ALSO READ: Fixed Deposit (FD) rates rise! Check what SBI, PNB, ICICI, HDFC, BOB, Post Office, others are offering

HDFC is offering 7.24 per cent on deposits for 1-2 years, while ICICI gives 7 per cent interest on a deposit for 2-10 years. Standard Chartered Bank is offering 7.40 per cent interest on deposits for 18 months to two years, while Axis Bank offers 7.1 per cent interest on deposits for1 year to 14 months. 

Some small banks like Jana Bank, Bandhan Bank, AU Bank and RBL are offering 8.5 per cent, 8.15 per cent, 8 per cent, 7.75 per cent returns respectively on select FD terms. 

Post Office is offering 7.4 per cent interest on term deposits for five years.