The Government of India raises debt to fund the nations economic progress. They are available for tenure as short as 3 months to as long as 10 years. They are very safe as they are backed by the government.
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|Government Bonds||Fixed Deposits|
|Returns||~3-6% p.a.||~5.5% p.a.|
|Liquidity before maturity||Very liquid, no penalty but subject to market rates||Available but with penalty|
|Risk||Safest Investment Option||Low|
|Taxation||No TDS on interest. No tax on maturity proceeds||TDS deducted on interest|