Is it the right time to invest in FD or should we wait for interest rates to rise? learn here

Tips For Fixed Deposit Investment: Due to continuous increase in repo rate, FD rates are also increasing. Due to this, last year where the general customers were getting 4 to 5 percent interest on one year FD, now it has increased to 6 to 7 percent. In such a situation, most people have a complaint that whenever they get FD made in the bank, after a few days, the banks are increasing the interest rates on that period. Due to this they suffer loss. In such a situation, the question is arising in the mind of the investors whether this is the right time to invest in FD or they should wait for a while. Let’s know about this.

What to wait right?

According to experts, the retail inflation rate has once again climbed up to 6.52 percent in January. In such a situation, there is little hope that RBI will make any reduction in its repo rate. Its growth can definitely be expected. If the repo rate increases, the FD interest rate will also increase. But you are stopping your investment only because you will get good returns on FD in the coming days, then it is not the right decision. Don’t stop your investment just waiting for good returns.

Invest in FD little by little-

If customers want to take advantage of rising interest rates in any situation, then you can invest smartly. Instead of investing a lump sum, invest little by little. Apart from this, you will also be able to take full advantage of the increasing interest rate in 2 to 3 months. For example, instead of making one FD of 2 lakhs, make two FDs of 1-1 lakh each.

Avoid auto renewal option-

If you want to take advantage of rising interest rates, then avoid choosing the option of auto renewal of FD. Auto renewal means that when your FD matures, it will be fixed again for the same period and interest rate. Due to this, you will not get the benefit of increased interest rate. In such a situation, avoid choosing such an option and get FD at new rates. Along with this, also check which bank is giving you more returns. Choose only that bank in which you are getting good returns.

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