With safety of capital and assured returns, FD have been popular investment avenues that ensure stable investments. Due to fluctuations in FD interest rates, investors are always on a lookout for better avenues that help them grow their wealth and reap high returns.
Exciting Times Till August
While the RBI has indicated that it is likely to keep the REPO rate stable for some time, interest rates have already started increasing. Investor confidence in the real estate sector seems to be making way back, and banks have already started hiking the home loan rates. Disruptions because of GST and demonetisation too are behind us and the demand for working capital is back. Global crude oil prices are on the rise.
All these will have an impact on interest rates of other products too. A couple of big banks have already hiked interest rates by up to 1% on term deposits, which means more banks will follow soon. While you may feel lured to wait and watch, let’s reiterate, don’t let the money sit idle and use the laddering approach and make that FD investment right away.
This does not mean the happy times are here to stay for the investors. Analysts feel that a normal monsoon is on the forecast, which will have a positive impact on the crops, and push rural demand.
With inflation too peaking off and the Reserve Bank of India (RBI) deciding to go for an open market operation to ease the G-sec (government securities) market, it is imminent that the RBI will go for a 25 basis points rate cut in August.
This may stabilise the rising interest rates, or may even take a south down trend again. So, this is the right time to invest in an FD and you may just get a good interest rate.
Where Should you Invest?
With Bajaj Finance, you can look for excellent returns, which come with an exciting suite of features. You can look for higher flexibility, periodic payouts and start investing with just Rs. 25,000. Also, do keep in mind the real return.
While interest rates have come down, inflation too is down from 8% in 2014 to 4.28 in March this year, which means you do get more money in your hands.
You can reap better returns when FD interest rates are high, but it may not always be the case. This does not mean that you need to stop investing. You could look for a laddering approach, which helps you earn more returns.
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