FD rates may slip. What now?

With the Reserve Bank of India (RBI) cutting the repo rate from 6.5 to 6.25 per cent, fixed deposit (FD) rates are likely to decline. Since the repo rate - at which the RBI lends to commercial banks - determines lending and deposit rates, banks may lower interest rates on new FDs. Now, the key question for those contemplating investing in FDs is - should they lock in current rates before they dip further or look at better alternatives?

This article was originally published on March 17, 2025.