Alternatives to fixed deposits: #3 Tax-free bonds
Saturday, May 27, 2017, 3:22 PM
As the name suggests, tax-free bonds were issued by state-owned companies such as NHAI, IRFC, HUDCO till March 2016. However, investors can now buy these bonds from the secondary market and can earn up to 2% more than bank fixed deposits after tax. These bonds score over fixed deposits or other debt investment as investors do not have to pay tax on the returns.