There are still some savings options where you can earn around 7 percent interest rate.
As markets turn volatile, conservative investors are the first to park their money in safer assets such as gold and fixed deposits.
Gold is regularly going more out of reach since the past few months where it has appreciated by as much as Rs 10,000 per 10 grams since January 2020.
Despite many cuts, small savings schemes continue to remain the choice of people for earning risk-free interest and slowly growing their wealth.
Cuts in small savings schemes interest rates of late have meant that not a lot of bank deposits are that attractive.
Even the largest banks have cut down their interest rates. But the market has several alternative opportunities that you can turn to in case you need better returns.
Here are four deposits that can give you good returns when compared to banks:
IDFC First Savings Bank account: IDFC First savings bank account deposits are rated AAA and it is a well capitalised bank. Savings account balance of Rs 1 lakh in this bank can give you an interest rate of 7 percent.
In case of emergency you can withdraw anytime from your savings account and it is not the same with fixed deposits (FDs), it levies 1 percent charge on customers.
Bajaj Finance: Bajaj Finance also offers an interest rate near 7 percent mark on fixed deposits. For a tenure between 36 to 60 months, you get an interest rate of 7.10 percent. This is a AAA-rated fixed deposit, and the company is a part of the Bajaj group.
The minimum deposit required is Rs 25,000.
Mahindra Finance: The Dhanvruddhi Cumulative and Non-Cumulative Scheme - Fixed Deposit interest rates are perhaps the most attractive. Investors booking deposits online via the Mahindra Finance website, can get a very high yield of nearly 8 percent on a 40-month deposit. The interest rate offered in the cumulative scheme is 7.05 percent for 27 months, 7.20 for 33 months and 7.30 for a 40-month tenure.
The deposits are rated AAA and being a part of the Mahindra group deposits are secure.YES Bank: Yes Bank offers an interest rate of 7 percent on its 2-3 year deposit.