FDs vs Bonds: Which Gives You More in 2025?

Bank FD rates are softening while government and corporate bonds are offering better yields. Here's what Indian savers need to know about their fixed-income options right now.

Here's what happened: RBI has cut the repo rate in 2025, putting downward pressure on bank FD rates across most tenors.. Government bonds and high-rated corporate bonds are currently offering yields of 7.5–8.5%, making them competitive with bank deposits.. Retail investors now have easier access to bonds via RBI Retail Direct, stock exchanges, and SEBI-registered bond platforms..

What you should do: Check your existing FD renewal date — if it's due in the next 60 days, compare bond yields before auto-renewing at a lower rate.. Open a free RBI Retail Direct account (rbiretaildirect.org.in) to buy government securities directly without any middleman charges.. Before buying any corporate bond, verify its credit rating is AA+ or AAA from a SEBI-registered rating agency — avoid unrated or A-rated bonds for your core savings..

Tax-free bonds issued by PSUs like NHAI and REC (available on exchanges) offer 6–6.5% tax-free yield — for anyone in the 30% slab, that beats a taxable FD offering under 8.5%.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.