How are RBI Bonds better than Fixed Deposits?

With time, the once appreciated investment option referred as the Fixed Deposits or FDs are losing their popularity owing to linear interest rates and people looking for alternative methods of investments. As the Reserve Bank of India (RBI) has issued RBI Floating rate bonds benchmarked at a NSC rate of interest of 7% and 0.35 basis points rise after every six months are enticing individual investors attention.
RBI bonds are acting like a blessing in disguise when it comes to a safe investment alternative by offering an interest rate of 1% to 2% higher than Fixed deposits (FDs)