Keeping FD in bank is the oldest habit of our Indians. Whenever it comes to saving money, the first thing that comes to mind is Bank FD. The biggest reason for this is security of money. Money kept in the bank gives us peaceful sleep. But when inflation increases, FD returns start to decrease. Moreover, tax deducted on interest reduces our profit. In such a situation, there is a doubt in mind whether more profit can be made from FD without taking risk. The answer lies in the special schemes of SBI Mutual Fund. SBI’s preferred debt and hybrid schemes can prove to be a game changer for you.

Safe way to earn more from FD

If you want to grow your hard-earned money faster than bank FD, SBI’s debt scheme can prove to be very useful for you. This has negligible market risk. These schemes are designed only for investors who want to keep their money safe. By investing money in these funds, you get better liquidity than bank FDs. This means you can easily withdraw your money whenever you want. SBI has many great options for different investment tenures.

Best option for short term investment

If you want to invest your money between 3 to 12 months, SBI Savings Fund is a good option. This is a money market fund. These funds invest money in very safe instruments like treasury bills or commercial paper. It gives stable returns. When you want to invest money for 1 to 2 years, you can choose SBI Low Duration Fund. The fund mainly invests in short-term corporate bonds. Both these funds have the potential to give higher returns in less time than FDs.

Investing money in government bonds will be beneficial

From a long-term perspective, SBI Banking and PSU Funds are considered very strong. If your investment period is 2 to 3 years, this scheme can give you a lot of benefits. The fund invests more than 80 percent of its money in large banks or public sector companies (PSUs). In addition, it also invests in highly rated (AAA) bonds of financial institutions. The risk is very low due to good credit rating. This plan is considered very robust from the security point of view.

Great profit with tax exemption

Many people want to avoid the ups and downs of the stock market. SBI Arbitrage Fund or Conservative Hybrid Fund are the best options for such investors. These funds increase your earnings without any major risk. The biggest advantage of this compared to bank FD is tax. Interest earned from bank FD is fully taxable as per your tax slab. But the rules are different in debt mutual funds. In this, you get a lot of tax relief depending on indexation or investment period.