Till now, financial experts had said that in the Corona era, invest in such options, where money is safe and good returns are given. During the corona, many experts on investment in bank FDs were advised to invest but now due to high inflation, bank FDs have not been as beneficial.
This has happened because now due to retail inflation and taxes, the benefit of interest on FD is ending. The retail inflation was recorded at 6.09 percent in the month of June but the current repo rate remained at 4 percent. In general, it happens that the repo rate hovers around inflation and financial institutions offer interest at a higher rate.Â
But now the repo rate is two per cent less than the retail inflation, that is, the interest paid on FD by the bank is much lower than the inflation rate. Experts believe that to maintain the purchasing power of investors at 6.09 per cent inflation, the tax-free person should get interest at the same rate. That is, those who fall in the tax slabs of 20 percent and 30 percent, need to pay 7.61 percent and 8.7 percent interest.
Which bank is paying interest on FD?
Five-Ten-Year FD General Citizen Senior Citizen
SBI 5.4% 6.2%
HDFC Bank 5.5% 6.25%
ICICI Bank
has some options left to investors for 5.5% 6.3% higher interest. Experts say that if you want to invest then at this time you can invest in corporate FD. It gets an interest of seven to eight percent. Apart from this, Bharat Bond ETF is a good option, getting 5.69 per cent and 6.9 per cent interest.Â
Apart from this one can invest in debt mutual funds, debt funds invest their money in AAA rated bonds. If you compare the returns after tax deduction, these funds give very good returns.
