/ -- Amidst the second phase of the nationwide lockdown, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced a series of measures to help boost liquidity and ease financial stress. He announced a cut of 25 basis points in the reverse repo rate, thereby bringing the repo rate from 4% to 3.75%. Additionally, he also announced TLTRO (Targeted Long-Term Repo Operations) that would inject around Rs. 50,000 crores of additional liquidity into the banking and financial systems.
While these measures would help increase availability of credit to end borrowers at competitive interest rates, it may also exert downward pressure on FD interest rates, offered by most financial institutions.
Thus, investors looking to grow their savings could reap the benefits of higher interest rates offered by most financial institutions, before these rates come down. Last month, the reduction of repo rate by RBI to 4.4% led to a fall in interest rates, and the current announcements may also result in the same.
Here's a look at some of the best ways for investors to grow their savings by investing in fixed deposit now.
Choosing the right FD issuer
Amid the present economic turmoil, choosing the right FD issuer is a prerequisite for investors seeking assured returns. In order to reap higher profits, it is advisable to not just look at high interest rates, but also check the background of the financier. Some of the best ways to select an FD issuer include:
Convenient online investment
Customer type
Interest rate (in %)
Interest payout*
Maturity amount*
New customer
7.80
Rs.11,394
Rs. 36,394
Existing customer
7.90
Rs.11,563
Rs. 36,563
Senior citizen
8.05
Rs.11,818
Rs. 36,818
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