Many individuals still view Fixed Deposits (FDs) as the most secure investment option due to their low-risk nature. However, the dissatisfaction with the minimal interest rates associated with FDs has led some investors to seek out riskier, unsecured investment opportunities for better returns. What if we told you that there are government-backed schemes that can provide higher returns than FDs without any associated risks? Let’s delve into three such government schemes that promise better returns while ensuring safety.

National Pension System (NPS)
The NPS is a government-sponsored retirement plan. This scheme invests your funds in bonds and the stock market, aiming for substantial returns. A portion of your investment is allocated for your pension, and you can access your funds after reaching the age of 60. The account can remain active until you are 70 to 75 years old, making it a dependable choice for retirement planning. You can expect returns of up to 8%, along with tax benefits.

RBI Floating Rate Savings Bonds (RBI FRSB)
If you prefer not to wait as long as with the NPS, consider the RBI FRSB. This government scheme is entirely secure and offers interest rates that can reach up to 8.05%. The interest rate is subject to periodic adjustments. You can conveniently purchase these bonds via the RBI Retail app. They provide a safe investment option similar to FDs but with higher interest rates.

National Savings Certificate (NSC)
The NSC is another government savings initiative that offers a secure long-term investment avenue. With a maturity period of 5 to 10 years, this scheme provides an interest rate of 7.7%. Additionally, it qualifies for tax deductions under Section 80C. If you are in search of a safe and long-term investment, the NSC may be an excellent choice, allowing you to start investing with as little as ₹1,000.

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