On June 6, RBI announced a shortage of 50 basis points in the repo rate. This is more than estimated. Economists had predicted a decrease of 25 basis points, or 0.25 per cent in the repo rate. The impact of double the expectation will be seen at the fixed deposit interest rates of banks. Private and government banks will start reducing interest rates soon on their fixed deposits. If you are thinking about keeping money in fixed deposits, then this is the last chance for you. Before the interest rates decrease, you should book FD.
Right now 7.25 percent opportunity to earn interest
Right now many private and government banks for long term (5 years) Fixed Deposit But 6.5 to 7.25 percent interest is offering. These rates are not going to meet further. A banker said, “If you want to invest in FD or your FD is going to mature, then this is the last chance for you to book FD at high interest rates.” Experts say that it is important to take care of some things in booking FDs.
Take special care of these things in booking FD
If your bank is offering 7 percent or more interest on a 3-5 year deposit, then you should pay some money at this rate. Experts say that the RBI will continue to reduce the interest rate. This means that the interest rates will remain low on the deposit for the next 1-2 years. Therefore, instead of keeping all the money in an FD, it would be good to keep it in FD of different maturity. Like suppose you have to do FD of 1 lakh rupees. So you can do three FDs of 33-33 thousand rupees, whose maturity can be one year, 2 years and 3 years. The advantage of this is that if the rates increase again after 1 or 2 years, then after maturity, you can put FD money in new FD on more interest.
FD can be booked in the name of senior cities
Banks give more interest on FDs to Senior Cities. If you book FD in the name of your elderly parents, then you can get 0.50 percent or more interest. You just have to keep in mind that in booking FDs in the name of parents, you have to give your name in the nominee. Many people do FD in the name of parents, but forget to give their names in the nominee. In such a situation, there is a problem in withdrawing money on the death of mother or father. To avoid such a situation, it is necessary to give your name in the nominee.
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Do not select the option of auto renewal
You do not have to select the option of auto renewal while doing FD. On doing this, the bank renews your FD itself when FD matures. In such a situation, you do not have the opportunity to see if you can get more interest if FD in another bank.