As banks reduce fixed deposit rates, investors should consider corporate bonds for higher returns. Unlike deposits that immediately reflect changes in repo rates, bond yields tend to adjust gradually, creating a yield cushion that investors can benefit from. Corporate bonds continue to deliver a favourable risk-reward trade-off with yields of 9-11% for AA-rated bonds. With predictable cash flows, secondary market tradability and a well-defined repayment hierarchy, these instruments bring transparency and structure to a portfolio. With online bond platform providers improving access and transparency, retail investors can now participate with greater ease. Vishal Goenka, co-founder, IndiaBonds.com, says with falling bank deposit rates and the RBI’s neutral stance, investors will have to look beyond traditional avenues for higher returns.