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

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.