With equity markets turning volatile, many investors are yearning for products that offer guaranteed returns. Banks have not hiked their fixed deposit (FD) rates to the same extent as the increase in the repo rate by the Reserve Bank of India (RBI). But yields in the bond markets have gone up, allowing insurers to offer guaranteed-return plans whose returns are better than those offered by leading banks’ FDs.
These are non-linked (returns not linked to the markets), non-participating (returns not dependent on insurer’s profits) plans. Both single and regular premium variants are available.
Better returns than FDs