Fixed Deposit: The Reserve Bank of India (RBI) may cut interest rates in its Monetary Policy Committee (MPC) meeting in April 2025. If this happens, banks may further reduce interest rates on their fixed deposits (FDs). It is worth noting here that RBI had cut the interest rates by 25 basis points (0.25%). After that many banks and financial institutions reduced their FD rates. In such a situation, if you are thinking of investing in FD or increasing its tenure before the next meeting of MPC, then this step can prove to be better for you.

FD is safe for investment

Fixed Deposit (FD) is a great option for those who want to keep their money safe and want to avoid risk. By investing in FD, your money is completely safe and you get returns at a fixed interest rate for a fixed period. The advantage of this is that your money keeps growing over time. Another big advantage of investing in FD is that its duration is flexible. This means you can have multiple FDs for different tenures as per your need and manage your financial plans easily as most of the banks these days offer FD schemes ranging from 7 days to 10 years.

Invest before the interest rate goes down

Considering the possibility of reduction in interest rates by RBI, this may be a good opportunity to invest in FD. As the interest rates decrease, the return on FD also decreases. Therefore, it may be wise to take advantage of the current higher rates. If you already have an FD, you can avoid the upcoming rate cuts and increase your returns by increasing its tenure.

Options for opening an FD account

You can open an FD account in your existing bank or choose a bank that offers better interest rates. If you think of opening an account in a new bank, you will have to complete KYC and other necessary documentation processes. At the same time, if you open an account in your old bank, then this process is very easy and fast.

Benefits of FD

The returns on FD are not affected by market volatility. You get a pre-determined interest rate, which remains constant for the entire period.

FD is a safe investment option as your money remains risk-free.

You can choose the tenure of the FD as per your needs. It can range from a few months to several years.

Opening an FD account has become very easy these days. You can open it using online banking services or by visiting your nearest bank branch.

If you have a lump sum amount that you do not want to use for some time, investing it in FD can be a wise decision. This gives you a stable source of regular income.

How to open an FD account?

If you open an account in your existing bank, the KYC process can be avoided and funds can be transferred easily.

If you open an account in a new bank, you will have to submit KYC and other documents.

Online banking services are also available, so you can open your FD account from home.

Where is the highest return available on FD

These days, many major banks like SBI, HDFC Bank, ICICI Bank, Axis Bank, Yes Bank, Bank of India (BoI), and Punjab National Bank (PNB) are offering FD schemes of different tenures to their customers. Banks are also offering excellent returns on FDs. However, before booking any bank FD scheme, investors should assess the interest rate and tenure offered by different banks. By doing this, you can choose the best option according to your needs. For your convenience, details of FD rates and tenure of more than 30 banks have been given here.