Strategize your FD investments as rates drop3 min read . Updated: 23 Jun 2019, 12:08 PM IST
- FD interest rates may drop further eventually, so it may make sense to lock in now, but make sure your investments are in sync with your money goals
- If your investment horizon is medium to long term, it makes sense to lock into a long-term FD now
Since February 2019, the Reserve Bank of India (RBI) has reduced the benchmark repo rate by 75 basis points. Accordingly, banks too have been gradually reducing the interest rates they offer on their deposits, especially fixed deposits (FDs). However, the reduction in FD rates by banks has not been in sync with the fall in repo rates. Between February and June, State Bank of India (SBI) reduced the interest rate offered on its FDs below ₹2 crore for a tenor of five years and above from 6.85% to 6.60%, a reduction of only 25 basis points.
Select your Category