As RBI rules out rate cuts soon, fixed deposits become attractive again

With the RBI hiking the policy rate at its recent MPC meeting amid higher geopolitical tensions, fixed deposits could offer a safe harbour for the less risk-averse

The Reserve Bank of India earlier this month decided to hike the repo rate by 25 basis points in light of higher inflation, which itself is being driven by geopolitical uncertainty in the aftermath of the West Asia war. The minutes of the central bank's rate-setting body, the Monetary Policy Committee, quote RBI Governor Sanjay Malhotra as saying that rate cuts in the immediate future are "off the table". Indian equity markets have also been roiled by uncertainty over oil prices, the ongoing war in West Asia, and the future of artificial intelligence. In such a situation, fixed deposits are often a safe harbour for savings, given their guaranteed, albeit lower, returns. Use this table from Paisabazaar to compare FD rates across banks and identify the highest returns available for their preferred tenure.