How to maximize returns from fixed deposit (FD) laddering strategy after repo rate pause?
FD laddering is a strategy where an investor spreads their investment across multiple FDs with different tenures and interest rates, creating a ladder of maturity dates.
Fixed deposits (FDs) are among the most popular investments under the debt category for conservative investors who don't want to take risks and in return seek to generate fixed income from short term to long term. Generally, fixed deposit interest rates are higher in the long term, but rather than putting all their money in a single account for long term, investors can maximize their returns through fixed deposit laddering strategy. Commercial banks are expected to keep relatively stable lending and deposit rates considering that the RBI decided to maintain the repo rate after six consecutive rises at its MPC meeting on April 6. As a result, amid the current rate regime, how investors can maximize returns from fixed deposit (FD) laddering strategy after repo rate pause, let’s know from industry experts.