Why stick with FDs when these six financial instruments can give over 7% returns

Traditionally, fixed deposits (FDs) was considered as the most secured option to park money. With less knowledge about other financial instruments, FDs were regarded as safe investment as it helped people to grow their financial assets without exposing them to volatility and other risks associated with the financial market.

Depending on the tenure, the banks offer interest rates in the range of 6-7%. This year, since the beginning, the banks are reducing the rates even more to woo investors. But, with the change in time and investors getting more aware about other financial instruments, FDs are not looked as it was earlier. 

However, if you are still stick with FDs, we tell you what other options you should look at:

1. Senior Citizen Saving Scheme

Designated for individuals above the age of 60, the Saving Schemes for senior citizens in India are effective, long term saving options and offer unmatched security and features that are usually associated with any government sponsored savings program. 

These schemes are available through certified banks as well as the network post offices spread across India. The typical SCSS account extends upto five years and upon maturity can be subsequently extended for an additional three years. The depositor is allowed to make one deposit into this account, an amount that is a multiple of Rs 1,000 and not extend beyond Rs 15 lakhs, as explained by Bank Bazaar. 

Presently, the scheme offers an interest rate of 8.3%. 

Are liquid funds a good option as bank saving interest rates drop?