Latest Financial Rate Revisions which Benefit Investors and Borrowers

A temporary loss of faith among the investors in India was caused by some major financial changes that were totally unanticipated. Going by the logic- ‘It gets worse before it gets better’, the transient economic standstill passed by and stability and confidence were reinstated.

Inflation never goes out of the picture and its advent nudged RBI for a repo rate cut of around 20 to 25 basis points. Deposit and lending rates decreased all over India with starkly different outcomes- on one hand, investors earned less and on the other, borrowers saved more.

In the present moment, the rates of interest for investment objects (fixed deposits) have increased again. The government is now promoting long term investments for FD investors and has therefore increased the interest for longer tenures. As for the shorter tenures- their high liquidity does not help the economy and hence, their rates have not been increased.

For more clarity, this is what short and long term FD investors can expect- for tenures of the range of 1-3 years, interest rates have been changed from 7% t0 6.90%. Tenures beyond 5 years (which are considered as long term) will earn an interest of 6.75% instead of the previous 6.5%.

As an investor, the best thing to do with your spare funds right now is to park them in a fixed deposit of a bank or Non-Banking Financial Company of good repute for a longer tenure.

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