Opt for some money in company fixed deposits
If you are purely investing in bank fixed deposits, then you need to change the mix to include a significant portion of company fixed deposits.
This is simply because they offer you superior returns. However, you should not be putting money in any and every company fixed deposit, but one's that are relatively secure. For example, public sector banks offer you a maximum of 9.25 per cent on a 2-5 year fixed deposit, while at the same time a Kerala government owned company FD, Kerala Road Transport Finance is offering you an interest rate of 10.25 per cent. Similarly, Mahindra Finance fixed deposit at 10 per cent is higher than a bank FD and relatively safe. Click for
Invest in long term tenures
In the present interest rate regime, it's best to opt for long term tenures. This is because interest rates in the economy are likely to fall and you would have locked in money at higher rates.