Tax-Free Bonds vs. Bank FDs: Which is Right for You?
Tax-exempt bonds vs bank FDs: Against the backdrop of a hawkish interest rate regime and high volatility in stock markets, tax and investment experts argue for short-term debt and cash. In fact, in a rising interest rate regime, equity returns should remain low as volatility is expected to continue in the near term. Thus, Indian household savings are expected to shift to safe havens like FD bank, gold, small savings schemes, etc. -savings bonds and maturity plans may be a better option than bank FDs. They said bank FDs won’t yield more than 5% in the short term, while tax-saving bonds could earn 1.5% to 2% more than bank fixed deposit rates offered for any market. what duration.