These banks are giving more than 9% interest on fixed deposits, check details here

To control inflation in the country, RBI was forced to increase the repo rate about two years ago. After this, many banks and non-banking financial companies (NBFC) of the country also increased the interest rates of their fixed deposit (FD) schemes. Started increasing. However, during the Monetary Policy Meeting (MPC) meeting on October 9, RBI has decided to keep the repo rate intact.

Meanwhile, experts believe that these good times for investors who prefer FDs may soon end. Because central banks around the world have started cutting interest rates and India may also soon join this list.

This could be the last opportunity for fixed deposit investors to protect their money at the current high rates and take full advantage of this situation.

When can the cuts start?

According to experts, another 50 basis point reduction may be seen from the US Federal Reserve in November this year. Therefore, it is believed that RBI will be forced to cut the repo rate in the next MPC meeting to be held in December. If inflation remains low, there may be further reduction in rates in financial year 2025.

When will interest rates be cut?

If there is a cut in the repo rate in December 2024, then a reduction in the interest rates of FD schemes may be seen from the beginning of the new year. However, with strong loan demand and an improving economic environment, banks may offer competitive deposit rates, rates may remain high for some time.

What should FD investors do?

At present, there is a very good opportunity for fixed income investors. Given the uncertainty in future interest rates, fixed interest rates rather than variable rate options may prove beneficial for investors.

Furthermore, the current interest rate cycle is expected to reverse, as interest rates are expected to decline in the coming months, but there is still potential for short-term rate hikes. Experts believe that interest rates have peaked and may start falling soon. When interest rates start falling, short to medium term FD schemes are usually the first to be affected. After this, long term FD rates reduce.