BT Insight: Should you wait for FD rates to go up or lock in your money now?
Problem accentuates for those whose long-term FDs are maturing now; these FDs were enjoying 9% interest but are struggling now to find an option to get even 7%
- Sep 19, 2020,
- Updated Sep 19, 2020 8:41 AM IST
The investors looking for safer fixed income investment options have witnessed nothing but disappointment, especially over the last one year when interest rates fell drastically. The ones looking to book deposits for the long-term (five years or more) are in dilemma as the current rates are significantly lower than those a few years ago. Most prominent banks are offering the best rate at 5.5 per cent to general citizens and around 6 per cent to senior citizens.
The problem accentuates for the people whose long-term FDs (five years or more) are maturing now. These FDs were enjoying over 9 per cent interest but are struggling now to find an option to get even 7 per cent. Some consider going for the best long-term rate offered now while others want to wait for interest rates to go up again and park their deposits for a short-term of one to two years for now. However, there is no surety of interest rate going up significantly few years down the line. So, what should investors do to protect themselves from losing interest on their deposits?
The investors looking for safer fixed income investment options have witnessed nothing but disappointment, especially over the last one year when interest rates fell drastically. The ones looking to book deposits for the long-term (five years or more) are in dilemma as the current rates are significantly lower than those a few years ago. Most prominent banks are offering the best rate at 5.5 per cent to general citizens and around 6 per cent to senior citizens.
The problem accentuates for the people whose long-term FDs (five years or more) are maturing now. These FDs were enjoying over 9 per cent interest but are struggling now to find an option to get even 7 per cent. Some consider going for the best long-term rate offered now while others want to wait for interest rates to go up again and park their deposits for a short-term of one to two years for now. However, there is no surety of interest rate going up significantly few years down the line. So, what should investors do to protect themselves from losing interest on their deposits?