Ethyx Club
December 2, 2025
When it comes to parking excess money, traditional passbook savings account is the most preferred option for the people. The popularity of the traditional savings account is owed to the fact that it provides an ease of depositing and withdrawal of money at a person's will.
There are plenty of credit options in India. Depending on the nature of risk taking, a person can opt for different options spanning across low, moderate and high risk credit opportunities.
However, with low interest rates, there are better alternatives a person can consider as a credit option. Today there are better credit options that offer same benefits and convenience at a better rate of interest.
Profitable alternatives with better returns are what a person looks for. Based on their risk factors, a person can go for low risk, moderate risk or high risk high yield credit alternatives. They are-
### LOW RISK CREDIT OPTIONS
A person opting for low risk model does not want any volatility in their portfolio and hence want to earn some returns on their savings. Some of the best low risk credit options are-
* Fixed deposits: for wealth maximisation, FDs are your best option. Since money is kept in bank for a fixed tenure, FDs fetch higher interest rates than bank accounts. The fund always keeps security and promises fixed returns free from market fluctuations. Moreover, the principal on the FDs is not depreciated. Company FDs are an even better alternative as they pay comparatively higher interest than bank FD.
* Public provident fund: it is a government backed fund which can be used as a safe credit opportunity with better returns in India. It gives risk free returns. The interest received over the amount in this scheme is reviewed and paid by the government on a quarterly basis.
* Money market funds: they are short term debt funds. The money is directed into various different money market instruments and promise to offer good returns. They also maintain high quality of liquidity.
* Liquid funds: they are one of the best alternatives to traditional savings account. They are also referred to as debt mutual funds. a person can invest in short term, government debt instruments like government securities, treasury bills(T-bills) and call money that have lower risk factor.
Some of the advantages of liquid funds include-
* Greater liquidity and safety. Ideal for emergency funds.
* Redirect in other financial instruments and maximise your savings
* Higher returns with attractive interest rates
### MEDIUM RISK CREDIT OPTIONS
A person opting for moderate or medium risk model is careful and chooses their option after much considerations. Some the best credit options for them are-
* Balanced mutual funds: it is one of the most prominent credit options in India. Even though it is subjected to market risks, they offer high yields and are a good alternative to traditional savings account. Even when you want to lower down the risk, a fixed income mutual fund can be your go to option.
* Debt funds: they are mutual funds like fixed income securities such as bonds and treasury bills. The monthly income plans guarantee some locked in money and not a total loss. Thus, they have a low risk ratio.
* Dividend paying stocks: although they are not as popular as high yield bonds, they offer a steady income. They are also referred to as 'blue chip' stocks because of their history of paying dividends. They are usually bought by institutions such as mutual funds and pension funds.
* Exchange traded funds (ETFs): it is just like a stock. Also called as basket of securities that trade on stock market. Exchange traded funds (ETFs) pool the finances of various people and uses them to purchase tradable money assets. These include shares and debt securities like bonds. Most of the ETFs are registered with the Securities and Exchange Board of India (SEBI).
### HIGH RISK CREDIT OPTION
A high risk credit opportunity does not guarantee a return. However, these are generally high yield credit opportunity in India as the returns are actually high yielding if invested wisely. The people who usually opt for this kind of credit option are pretty keen on understanding securities and more. Some good high risk credit alternative to traditional savings account are as follows-
* Direct equities: they are one of the best credit options for long term purposes. It is an equity share of a company bound by legal terms related to company ownership. When a person buys the equity shares, they get the right to be involved in the company's decision making. But equities are highly volatile and hold high risk.
* Equity mutual funds: they are funds that will primarily invest in stocks. A person can invest the money in these through SIP, little by little; or in lumpsum. It is usually taken by savvy patrons who are experts in this field. The returns are quite high but so is the risk factor.
* Foreign exchange: FOREX or foreign exchange is defined as a network of buyers and sellers who exchange currencies at an agreed upon price. Hence, foreign currency trading is the process by which people, businesses and banks exchange currencies from one another.
Usually to achieve financial stability, a person's go to call is savings. But savings are not always enough. Therefore, investing in alternative credit opportunities other than traditional savings account is always better. It provides high yielding returns to the person and also offers a variety of options to choose from.