Not satisfied with FD returns of top-tier banks? Consider G-Secs

Those keen on locking in interest rates for very long tenures should also opt for them

The Retail Direct Scheme of the Reserve Bank of India (RBI) has not evoked very enthusiastic response from retail customers so far. According to media reports, barely Rs 96 crore worth of government securities (G-Secs) have been purchased through this platform between November 2021 and April 2022.

Better returns than bank FDs

According to experts, however, retail investors should consider investing in G-Secs. “Since these securities are issued by the government, they are almost risk free,” says Joydeep Sen, corporate trainer (debt markets) and author.

Their returns have also turned fairly attractive. “The G-Sec maturing in 2026 is currently offering a 7.14 per