Which should be preferred ? Bank FD’s or tax free bonds

[samkapoor77]

I went to Canara Bank to open a fixed deposit account for 3-5 years. There I met a person who suggested me to invest in tax free bonds. He told me that tax free bonds yield better post tax returns as compared to fixed deposits. I don’t see requirement of funds in next 5 ? 6 years but definitely look for high returns with low to moderate risk. What do you suggest in my case ? tax free bonds or fixed deposit with bank?

[samkapoor77]

I will recommend tax free bonds for you as they definitely yield good returns in comparison to bank FD’s.

[Author]

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