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Strategies to protect your income in a scenario of falling interest rates

Several products offer better rates, especially for seniors; that said, never try to optimise returns when you need money in the short term

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Non-senior investors who could need the money in the short-term should use debt mutual funds

5 min read Last Updated : Sep 20 2020 | 7:31 PM IST

The Reserve of India (RBI) has been reducing interest rates to try and shore up the economy. It has cut the repo rate by a cumulative 250 basis points (bps) to 4 per cent since February 2019. While this low interest rate environment is a boon for borrowers, it has made life more difficult for fixed-income investors, especially senior citizens.

In another blow to these investors, the State Bank of India (SBI) on September 10 cut the rate on its one- to less than two-year fixed deposit (FD) by 20 basis points (bps). It now yields 4.9 per cent per annum.

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