If you want to keep your savings safe at a better interest rate in the coming time, then this news is for you. The Reserve Bank of India (RBI) has kept the repo rate stable in the last 10 policy meetings, but experts believe that the repo rate may be reduced in the next meeting to be held in December. After this, many banks can also reduce their lending and deposit rates.
Therefore, investment experts are advising that if your financial needs are going to be met in the next 2-3 years, then you can lock your savings in fixed deposits (FD) now. Preeti Zende, SEBI-registered investment advisor and founder of Apna Dhan Financial Services, said, “If your financial goals are 2-3 years away, then you should invest money in fixed deposits without waiting now.”
The reason for this is that if the process of repo rate cut starts, then banks will also reduce the interest rates on their deposits. In such a situation, for those who want good returns, this is the right time to focus on FDs with a tenure of 3 years. Let us know about those banks which are currently giving the highest interest rate on 3-year fixed deposits: List of private banks
HDFC Bank:Â Offering 7% interest rate for general citizens and 7.5% for senior citizens. These rates are applicable from 24 July.
ICICI Bank:Â Offering 7% and 7.5% interest rates for general citizens and senior citizens respectively.
Kotak Mahindra Bank: Offering 7% interest rate for general citizens and 7.6% for senior citizens.
list of government banks
SBI:Â Offering interest rate of 6.75% for general citizens and 7.25% for senior citizens.
Punjab National Bank:Â Offering interest rate of 7% for general citizens and 7.5% for senior citizens.
Union Bank of India:Â Offering 6.7% for general citizens and 7.2% for senior citizens.
Things to note
According to investment advisor Preeti Zende, although the interest rates of FDs seem quite attractive at this time, it would not be right to put your entire savings in FDs only, because the returns from FDs are taxable and in the long run it is not enough to deal with inflation.
Therefore, while making your investment strategy, keep in mind that invest only a small or medium part in FDs and put the rest of the funds in other investment options.
