Invest in fixed deposits before April 1 - Fusion - WeRIndia

People who do not want to take risk on their investments normally invest their money in bank fixed deposits. If you are one of them, then it is better to invest your money before April 1, 2016. The interest rates on fixed income yielding instruments such as bonds, fixed deposits and NCDs are going to be reduced as banks revise their interest rates which will come into force from April 1, 2016.

The interest rates are likely to fall on deposits. There are many reasons for it.

Banks did not reduce their interest rates so far. Till now, the interest rates were higher on deposits in post offices than deposits of banks. But, now the interest rates of post office deposits have reduced, and banks would also reduce their interest rates. Another expected reason for the fall in interest rate on deposits is that Reserve Bank India would slash the interest rates in its scheduled meeting in the first week of April, 2016 due to the reduction in inflation of the country’s economy. So, banks may reduce their interest rates as already the interest rates of the post office deposits had also fallen.

The interest rates on all deposits including PPF, Senior Citizens Saving Scheme, NSC, Kisan Vikas Patra, Sukanya Samriddhi Account and Post Office Time Deposits would be changed. The current interest rate of PPF is 8.7 per cent which will be slashed to 8.1 per cent from April 1 to June 30. The interest rate on Kisan Vikas Patra and 5 year NSC will be reduced from 8.7 per cent to 7.8 per cent and 8.1 per cent respectively. Even the interest rates on 5 year Senior Citizens Saving Scheme and Sukanya Samriddhi Account will be fallen to 8.6 per cent from 9.3 per cent and 9.2 per cent respectively. So, if you want to invest your money in the above schemes, it is better to invest it before April 1, 2016.

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