Fixed Deposits (FDs) have always been one of the most popular and safest ways to invest money in India. But with inflation going up, FD interest rates staying low, and more people becoming financially aware, many are now looking for FD alternatives in India that can give better returns and more flexibility.
If you’re asking yourself, “What are the best investment plans in 2025 that can earn me more than regular FD?”, then this article is for you. We’ll look at 10 investment options better than FDs
10 Investment Options Better Than Fixed Deposits in 2025
If you’re looking for investment options better than FDs in 2025, then you’re not alone. Here are some of the best high return investments vs fixed deposits and FD alternatives in India that provide safety, tax relief, or long-term growth depending on your needs.
1. Equity Mutual Funds
These mutual funds mostly invest in company shares. They are one of the most popular high return investments vs fixed deposits, especially for people who can stay invested for many years.
- Average Returns: 12% to 15% yearly over the long term
- Risk Level: Medium to high, depends on the market
- Best For: People investing via SIPs and focusing to build wealth slowly
Funds like Axis Bluechip Fund and SBI Bluechip Fund have frequently given better returns than FDs if held for 5 to 10 years. Gradually, your money has the capability to grow much more than in fixed deposits.
2. Public Provident Fund (PPF)
PPF is a government-backed saving scheme which is completely tax-free. It’s best for people who want safe and stable growth without any taking any risk.
- Interest Rate: 7.1% per year, which is compounded every year
- Lock-in Period: 15 years, partial withdrawals are allowed after a few years
- Tax Benefits: No tax on investment, interest earned, or maturity amount
PPF is the safest FD alternatives in India and can give better overall returns, compared to most fixed deposits.
3. RBI Floating Rate Savings Bonds
These are issued by the government and are becoming a smart fixed deposit alternative in 2025. The interest rate changes after every 6 months, so you take benefit when rates rise.
- Interest Rate: 8.05% (July 2025 )
- Tenure: 7 years
- Risk Level: Very low, because the government guarantees the money
It is best for people who want safe investments with better returns than regular bank FDs, without stressing about market ups and downs.
4. National Pension Scheme (NPS)
The National Pension Scheme (NPS) helps you build a retirement fund over time. It invests your money in both stocks and bonds, depending on your age and risk level.
- Average Returns: 9% to 12%, which depends on how your money is divided between equity and debt
- Tax Benefits: Extra ₹50,000 deduction under Section 80CCD(1B), besides Section 80C
- Best For: People who are planning for long-term savings for their retirement
NPS is way better than FDs if your goal is to grow your money slowly and get exciting tax benefits at the same time.
5. Debt Mutual Funds
These funds mainly invest in bonds and fixed-income securities. They don’t give very high returns but they’re more stable than equity mutual funds.
- Types: Short-duration, corporate bond, liquid funds
- Average Returns: 6% to 8% every year
- Taxation: They gave indexation benefits after 3 years
They are great FD alternatives in India for people who have balanced risk appetite and return, especially in short-term goals.
6. Stocks (Direct Equity)
When you buy shares of companies directly, then they can give you the highest returns, but they also comes with the highest risk.
- Average Returns: 12% to 20% in the long run but can vary
- Best For: Investors who are experts and understand the stock market and also can handle ups and downs
Example: Well-established stocks like TCS, Infosys, and HDFC Bank. If picked carefully and held for a long period of time, these stocks can beat many other best investment plans 2025.
7. Real Estate Investment Trust (REITs)
REITs allows you to you invest in commercial real estate like office spaces and malls, without having to buy property yourself.
- Average Returns: 6% to 8% income per year. Also the property value increase over time
- Liquidity: It is easy to buy and sell on stock exchanges
- Best For: Investors who are looking for passive income without owning any property
REITs are becoming popular fixed deposit alternatives in 2025 for people who want real estate exposure in their portfolio.
8. Post Office Monthly Income Scheme (POMIS)
It is a safe and steady monthly income option, especially for retired people or those looking for fixed payouts.
- Interest Rate (Q2 FY 2025): 7.4% per year
- Tenure: 5 years
- Best for: Conservative investors who want regular monthly income
It’s a simple and trusted option that provides better monthly returns than most bank FDs, and your money stays secure.
9. Corporate Fixed Deposits
These are fixed deposits offered by companies (NBFCs), not by banks. They give higher returns, but you must check the company’s financial health.
- Interest Rate (2025): 7.5–8.5%, depending on how long you invest
- Risk Level: Medium, always check credit ratings like AAA or AA
- Tenure: 1 to 5 years
Corporate FDs are high return investments vs fixed deposits from banks, but choose only well-rated and trusted companies.
10. Gold Bonds (Sovereign Gold Bonds – SGBs)
SGBs are issued by the RBI and give you the benefit of owning gold without having to store it physically.
- Interest Rate: 2.5% per year (fixed), plus gold price appreciation
- Tenure: 8 years (you can exit after 5 years)
- Tax Benefits: No capital gains tax if held till maturity
SGBs are one of the safest and smartest FD alternatives in India, as they offer both safety and good returns by protecting your money from inflation.
Final Thoughts
In 2025, you don’t have to settle for low FD returns. There are many investment options better than fixed deposits that offer higher returns and some come with very little risk too.
By mixing some of the best investment plan 2025 into your portfolio, you can grow your wealth faster, protect your savings from inflation, and reach your financial goals more confidently.
FAQs
Are mutual funds safer than fixed deposits?
Mutual funds include market risks. But if you stay invested for a long time, they often give better returns than fixed deposits.
Which is the best FD alternative in India in 2025?
For low-risk investors, RBI Floating Rate Bonds and PPF are one of the best FD alternatives in India in 2025.
Is it good to invest in corporate FDs?
Yes, but only if they are provided by trusted companies with a high credit rating, which is AA+ or higher.
Can I get monthly income from FD alternatives?
Yes. Choices like Post Office Monthly Income Scheme, REITs, or even Systematic Withdrawal Plans (SWPs) can give you monthly payouts.
What are high return investments vs fixed deposits in 2025?
If you’re focusing on growth, equity mutual funds, NPS, and stocks are some of the best high return investments vs fixed deposits in 2025.