In a move that was largely expected, the Reserve Bank of India (RBI) cut the repo rate by 25 basis points bringing it down to 6%. This is the second rate cut in a row, signalling that the central bank is clearly prioritising economic momentum over inflation concerns. While this is great news for borrowers&mdash;home loans and EMIs are likely to get cheaper&mdash;it puts fixed deposit (FD) investors in a tight spot. With returns already low, this rate cut could squeeze them even further.
Let&rsquo;s unpack what this means for your savings and why it might be time to look beyond traditional FDs.
<h2>FD Rates Are Already Falling&mdash;And More Cuts Could Be Ahead</h2>
Soon after the announcement, several major banks moved quickly to reduce their FD interest rates. The drop is visible across short- and medium-term tenures, while long-term FD rates are still just about holding firm. But let&rsquo;s be honest&mdash;they won&rsquo;t stay there for long. Once banks fully absorb the repo cut, even those long-term rates will start drifting downward.
If you&rsquo;ve been sitting on the fence thinking the rates might bounce back, it&rsquo;s probably not happening anytime soon. This is the beginning of a softer interest rate cycle, and delaying FD investments could mean settling for much lower returns later.
<h2>Special FD Schemes? They&rsquo;re Being Quietly Discontinued</h2>
Remember those limited-period FD schemes offering 7.5% or even higher returns for senior citizens or specific durations like 444 or 999 days? Those were the golden tickets last year. But now, banks are quietly rolling them back. The special interest rates were introduced when deposit mobilisation was a challenge&mdash;but not anymore. With liquidity flush and rates trending down, banks simply don&rsquo;t need to offer those extra perks.
If you missed the bus on those schemes, don&rsquo;t wait for them to come back. Instead, you might want to secure what&rsquo;s still available before everything gets repriced lower.
<h2>Tax-Saving FDs Are Losing Their Edge</h2>
Five-year tax-saving FDs have long been a popular tool for conservative investors. You got tax benefits under Section 80C, and the returns, while modest, were predictable. But in the current scenario, they&rsquo;re becoming harder to justify. With interest rates slipping and the interest being fully taxable, the real returns after inflation and tax look less and less appealing.
It might be time to explore alternatives like ELSS mutual funds or PPF. Both offer tax benefits, and in the case of ELSS, potentially higher returns&mdash;albeit with some risk. For younger investors or those with longer time horizons, it&rsquo;s a trade-off worth considering.
<h2>Want Stability? Lock in Long-Term FD Rates Now</h2>
If you&rsquo;re still keen on FDs&mdash;and there&rsquo;s nothing wrong with that&mdash;then the smart move is to lock in long-term rates now. A few PSU and private banks are still offering decent returns for 3- to 5-year deposits. These rates may seem okay today, but in a few months, they might look fantastic in comparison.
This is especially relevant for retirees or anyone looking to lock in a predictable income stream. Don't wait for another rate cut and regret missing today&rsquo;s rates.
<h2>Non-Bank FDs Still Offer Higher Returns&mdash;With a Caveat</h2>
Here&rsquo;s where it gets interesting. While traditional banks are slashing rates, non-banking financial companies (NBFCs) and small finance banks are still offering 8%&ndash;9% on their FDs. Some of them even go a bit higher for senior citizens. If you're open to parking your money outside the typical big banks, these could be worth a look.
Of course, there's a bit more risk involved. So, make sure the institution is well-rated and regulated. Stick with NBFCs that have a proven track record and always keep your deposit size within the ₹5 lakh insurance limit for peace of mind.
<h2>Smaller Banks for Seniors? Yes, But Do Your Homework</h2>
Smaller banks and small finance banks often offer better interest rates than their bigger counterparts. For senior citizens especially, this can make a meaningful difference in monthly income. But how safe are these banks?
In most cases, they&rsquo;re perfectly safe&mdash;especially if they fall under RBI regulation and DICGC insurance coverage. Deposits up to ₹5 lakh per bank are protected. Still, it&rsquo;s wise to spread your money across a few institutions and not chase the absolute highest rate blindly. A balanced approach works best.
<h2>Don&rsquo;t Rely on FDs Alone</h2>
The RBI&rsquo;s rate cut is a wake-up call. The era of parking money in a single FD and forgetting about it for five years is fading fast. With inflation eating into your returns and bank rates heading lower, it&rsquo;s time to think broader.
Debt mutual funds, RBI Floating Rate Savings Bonds, senior citizen savings schemes, or even hybrid mutual funds are all worth exploring. If you&rsquo;re nearing retirement, a mixed portfolio can give you better stability, liquidity, and returns. And if you&rsquo;re younger, you&rsquo;ve got the time to take a bit more risk for potentially much higher rewards.
In conclusion, this repo rate cut might seem like just another policy tweak, but it could change how you save and invest. For fixed deposit investors, especially senior citizens and conservative savers, the message is clear: act fast or prepare for thinner returns. There&rsquo;s still time to lock into decent FD rates.

Business & Economy: The Reserve Bank of India (RBI) cut the repo rate by 25 basis points bringing it down to 6%. This is the second rate cut in a row, signalling that the central bank is clearly prioritising economic momentum over inflation concerns.

In a move that was largely expected, the Reserve Bank of India (RBI) cut the repo rate by 25 basis points bringing it down to 6%. This is the second rate cut in a row, signalling that the central bank is clearly prioritising economic momentum over inflation concerns. While this is great news for borrowers—home loans and EMIs are likely to get cheaper—it puts fixed deposit (FD) investors in a tight spot. With returns already low, this rate cut could squeeze them even further. Let’s unpack what this means for your savings and why it might be time to look beyond traditional FDs. FD Rates Are Already Falling—And More Cuts Could Be Ahead Soon after the announcement, several major banks moved quickly to reduce their FD interest rates. The drop is visible across short- and medium-term tenures, while long-term FD rates are still just about holding firm. But let’s be honest—they won’t stay there for long. Once banks fully absorb the repo cut, even those long-term rates will start drifting downward. If you’ve been sitting on the fence thinking the rates might bounce back, it’s probably not happening anytime soon. This is the beginning of a softer interest rate cycle, and delaying FD investments could mean settling for much lower returns later. Special FD Schemes? They’re Being Quietly Discontinued Remember those limited-period FD schemes offering 7.5% or even higher returns for senior citizens or specific durations like 444 or 999 days? Those were the golden tickets last year. But now, banks are quietly rolling them back. The special interest rates were introduced when deposit mobilisation was a challenge—but not anymore. With liquidity flush and rates trending down, banks simply don’t need to offer those extra perks. If you missed the bus on those schemes, don’t wait for them to come back. Instead, you might want to secure what’s still available before everything gets repriced lower. Tax-Saving FDs Are Losing Their Edge Five-year tax-saving FDs have long been a popular tool for conservative investors. You got tax benefits under Section 80C, and the returns, while modest, were predictable. But in the current scenario, they’re becoming harder to justify. With interest rates slipping and the interest being fully taxable, the real returns after inflation and tax look less and less appealing. It might be time to explore alternatives like ELSS mutual funds or PPF. Both offer tax benefits, and in the case of ELSS, potentially higher returns—albeit with some risk. For younger investors or those with longer time horizons, it’s a trade-off worth considering. Want Stability? Lock in Long-Term FD Rates Now If you’re still keen on FDs—and there’s nothing wrong with that—then the smart move is to lock in long-term rates now. A few PSU and private banks are still offering decent returns for 3- to 5-year deposits. These rates may seem okay today, but in a few months, they might look fantastic in comparison. This is especially relevant for retirees or anyone looking to lock in a predictable income stream. Don't wait for another rate cut and regret missing today’s rates. Non-Bank FDs Still Offer Higher Returns—With a Caveat Here’s where it gets interesting. While traditional banks are slashing rates, non-banking financial companies (NBFCs) and small finance banks are still offering 8%–9% on their FDs. Some of them even go a bit higher for senior citizens. If you're open to parking your money outside the typical big banks, these could be worth a look. Of course, there's a bit more risk involved. So, make sure the institution is well-rated and regulated. Stick with NBFCs that have a proven track record and always keep your deposit size within the ₹5 lakh insurance limit for peace of mind. Smaller Banks for Seniors? Yes, But Do Your Homework Smaller banks and small finance banks often offer better interest rates than their bigger counterparts. For senior citizens especially, this can make a meaningful difference in monthly income. But how safe are these banks? In most cases, they’re perfectly safe—especially if they fall under RBI regulation and DICGC insurance coverage. Deposits up to ₹5 lakh per bank are protected. Still, it’s wise to spread your money across a few institutions and not chase the absolute highest rate blindly. A balanced approach works best. Don’t Rely on FDs Alone The RBI’s rate cut is a wake-up call. The era of parking money in a single FD and forgetting about it for five years is fading fast. With inflation eating into your returns and bank rates heading lower, it’s time to think broader. Debt mutual funds, RBI Floating Rate Savings Bonds, senior citizen savings schemes, or even hybrid mutual funds are all worth exploring. If you’re nearing retirement, a mixed portfolio can give you better stability, liquidity, and returns. And if you’re younger, you’ve got the time to take a bit more risk for potentially much higher rewards. In conclusion, this repo rate cut might seem like just another policy tweak, but it could change how you save and invest. For fixed deposit investors, especially senior citizens and conservative savers, the message is clear: act fast or prepare for thinner returns. There’s still time to lock into decent FD rates.

Repo Rate Hits 6%: What You Must Know Before FD Returns Shrink Further

The Monetary Policy Committee (MPC) kickstarted the low repo rate cycle on 7 February 2025 with a 25-basis points rate cut. In the coming weeks and months, it is expected to bring down the interest rates slowly but steadily, keeping in mind global macro-economic situations. For Fixed Deposit (FD) investors, this means that the attractive FD rates seen in recent months may not last indefinitely. This raises an important question: Should investors rethink their strategy and explore alternatives such as debt mutual funds and bonds?
<h2>Who Should Stick to FDs?</h2>
Depending on whom you are talking to, you may find FDs to be much maligned or right up on a pedestal. Nevertheless, FDs continue to be a reliable investment option that offers a combination of returns and capital protection. There are clear-cut instances where it is smarter to invest in an FD over any other financial instrument. Here are five situations where you should continue investing in FDs:
Capital protection is a priority: No one can afford to always take the same amount of risk for every investment. Investments that are exposed to market volatility may not be always appropriate. Bank FDs offer assured returns, making them ideal low risk-moderate return investments.
You need stable and predictable returns: Market-linked instruments may give you higher returns over time, but you cannot predict how much that will finally amount to. Unlike these, FDs provide a guaranteed interest rate, unaffected by market fluctuations. So, if you are looking to accumulate a certain amount of money within a fixed time, FDs are a better bet.
You need funds for short-term goals: Macro-economic trends indicate a volatile couple of years. Even otherwise, market cycles tend to be long. If you require liquidity within 1-3 years, short-term FDs can be a safer bet than debt funds, which are expected to see price fluctuations in the near future.
You fall in a lower tax bracket: Since FD interest is taxed at your income tax slab, if you are in the lower tax brackets, your tax liability may be much lower and your overall returns from FDs may be higher.
You do not want to track the market: The terms and conditions of the FD does not change during the deposit period even if the markets turn or the repo rate increases or decreases. So FDs require minimal monitoring.
<h2>Who Should Consider Alternatives?</h2>
There are several reasons to explore alternatives to FDs. If you have a long investment window, you be better off with equity funds that give you a much higher inflation-proof returns. The taxation on these is also a flat 12.5% on gains of above Rs.1.25L in a year. FDs on the other hand will be taxed as per your income tax slab.
Unlike FDs, where premature withdrawals incur penalties, debt funds allow easy redemption with little to no exit load after a few months. This comes in handy if you need additional liquidity but are unable to anticipate in advance exactly when you would need it. Finally, if you are looking for diversification, holding a mix of FDs, bonds, and debt and index funds can help balance safety, liquidity, and returns in your portfolio.
<h2>What Should You Do Post-MPC?</h2>
With rates expected to fall, stick to short-term FDs for stability if you have an investment window of 2-3 years or less. If you are looking at 3&ndash;5-year investments, consider a mix of FDs and high-rated corporate bonds to get stability and slightly better returns. Look to equity for long-term investments of over 5 years as they could offer much higher returns and be more tax-efficient, especially in high-income tax brackets.
If you are a risk-averse senior citizen, special senior citizen FD schemes offering higher interest rates (7.5%&ndash;8%) remain an attractive option.
<h2>Conclusion</h2>
While FDs remain a safe and simple investment, if you are looking for higher diversity and flexibility, you may want to consider debt mutual funds and bonds. The MPC&rsquo;s steady interest rate decision gives investors a window to lock in FD rates before potential cuts in the future. However, for those seeking higher inflation-adjusted returns, diversifying into debt funds and bonds may be a prudent strategy. Ultimately, the right choice depends on your financial goals, tax situation, and risk tolerance.

Business & Economy: For Fixed Deposit (FD) investors, this means that the attractive FD rates seen in recent months may not last indefinitely.

The Monetary Policy Committee (MPC) kickstarted the low repo rate cycle on 7 February 2025 with a 25-basis points rate cut. In the coming weeks and months, it is expected to bring down the interest rates slowly but steadily, keeping in mind global macro-economic situations. For Fixed Deposit (FD) investors, this means that the attractive FD rates seen in recent months may not last indefinitely. This raises an important question: Should investors rethink their strategy and explore alternatives such as debt mutual funds and bonds? Who Should Stick to FDs? Depending on whom you are talking to, you may find FDs to be much maligned or right up on a pedestal. Nevertheless, FDs continue to be a reliable investment option that offers a combination of returns and capital protection. There are clear-cut instances where it is smarter to invest in an FD over any other financial instrument. Here are five situations where you should continue investing in FDs: Capital protection is a priority: No one can afford to always take the same amount of risk for every investment. Investments that are exposed to market volatility may not be always appropriate. Bank FDs offer assured returns, making them ideal low risk-moderate return investments. You need stable and predictable returns: Market-linked instruments may give you higher returns over time, but you cannot predict how much that will finally amount to. Unlike these, FDs provide a guaranteed interest rate, unaffected by market fluctuations. So, if you are looking to accumulate a certain amount of money within a fixed time, FDs are a better bet. You need funds for short-term goals: Macro-economic trends indicate a volatile couple of years. Even otherwise, market cycles tend to be long. If you require liquidity within 1-3 years, short-term FDs can be a safer bet than debt funds, which are expected to see price fluctuations in the near future. You fall in a lower tax bracket: Since FD interest is taxed at your income tax slab, if you are in the lower tax brackets, your tax liability may be much lower and your overall returns from FDs may be higher. You do not want to track the market: The terms and conditions of the FD does not change during the deposit period even if the markets turn or the repo rate increases or decreases. So FDs require minimal monitoring. Who Should Consider Alternatives? There are several reasons to explore alternatives to FDs. If you have a long investment window, you be better off with equity funds that give you a much higher inflation-proof returns. The taxation on these is also a flat 12.5% on gains of above Rs.1.25L in a year. FDs on the other hand will be taxed as per your income tax slab. Unlike FDs, where premature withdrawals incur penalties, debt funds allow easy redemption with little to no exit load after a few months. This comes in handy if you need additional liquidity but are unable to anticipate in advance exactly when you would need it. Finally, if you are looking for diversification, holding a mix of FDs, bonds, and debt and index funds can help balance safety, liquidity, and returns in your portfolio. What Should You Do Post-MPC? With rates expected to fall, stick to short-term FDs for stability if you have an investment window of 2-3 years or less. If you are looking at 3–5-year investments, consider a mix of FDs and high-rated corporate bonds to get stability and slightly better returns. Look to equity for long-term investments of over 5 years as they could offer much higher returns and be more tax-efficient, especially in high-income tax brackets. If you are a risk-averse senior citizen, special senior citizen FD schemes offering higher interest rates (7.5%–8%) remain an attractive option. Conclusion While FDs remain a safe and simple investment, if you are looking for higher diversity and flexibility, you may want to consider debt mutual funds and bonds. The MPC’s steady interest rate decision gives investors a window to lock in FD rates before potential cuts in the future. However, for those seeking higher inflation-adjusted returns, diversifying into debt funds and bonds may be a prudent strategy. Ultimately, the right choice depends on your financial goals, tax situation, and risk tolerance.

Should You Rethink Your FD Strategy Post MPC?

Bollywood actress Jacqueline Fernandez has said that her Fixed Deposits (FDs), which the Enforcement Directorate (ED) has attached in connection with the Rs 200 crore PMLA case involving multimillionaire conman Sukesh Chandrashekhar, are her hard-earned money and not proceeds of crime. 
 
Jacqueline in her reply furnished before the concerned authority said that she made the FDs before having any links with the conman. It was her income which was legal and tax was also paid on it, she added. 
 
"It is my own earned money. At that time Chandrashekhar didn`t exist in this world. This should be released. The allegations against me is that I received gifts from him," she said in her reply. 
 
Recently, the ED attached a number of Jacqueline`s FDs claiming it was tainted money. The agency has also filed second supplementary chargesheet recently in the matter against the actress.

Bollywood actress Jacqueline Fernandez has said that her Fixed Deposits (FDs), which the Enforcement Directorate (ED) has attached in connection with the Rs 200 crore PMLA case involving multimillionaire conman Sukesh Chandrashekhar, are her hard-earned money and not proceeds of crime.

Bollywood actress Jacqueline Fernandez has said that her Fixed Deposits (FDs), which the Enforcement Directorate (ED) has attached in connection with the Rs 200 crore PMLA case involving multimillionaire conman Sukesh Chandrashekhar, are her hard-earned money and not proceeds of crime. Jacqueline in her reply furnished before the concerned authority said that she made the FDs before having any links with the conman. It was her income which was legal and tax was also paid on it, she added. "It is my own earned money. At that time Chandrashekhar didn`t exist in this world. This should be released. The allegations against me is that I received gifts from him," she said in her reply. Recently, the ED attached a number of Jacqueline`s FDs claiming it was tainted money. The agency has also filed second supplementary chargesheet recently in the matter against the actress.

'It's my hard-earned money, not proceeds of crime', Jacqueline Fernandez on FDs attached by ED

Foreign investors, barring overseas airlines, can now have up to 100 per cent stake in local carriers, the Indian government today said unveiling significant reforms. 
 
Besides, the norms for foreign direct investment in brownfield airports have been relaxed. 
 
Aimed at attracting more funds into the aviation sector which has high growth potential, the National Democratic Alliance&#39;s latest measure comes less than a week after the unveiling of the National Civil Aviation Policy. 
 
The announcement also comes against the backdrop of persisting concerns over ownership and control at local carriers where foreign players have a substantial stake. 
 
Now, 100 per cent foreign investment will be allowed in &quot;scheduled air transport service/domestic scheduled passenger airline and regional air transport service&quot;, an official release said. 
 
Only non-airline players will be allowed to bring in 100 per cent foreign direct investment in local carriers. 
 
Under the new set-up, 49 per cent will be through the automatic route and for anything beyond, a nod from the government will be required. At present, up to 49 per cent FDI is permitted in scheduled airlines. 
 
&quot;For NRIs, 100 per cent FDI will continue to be allowed under the automatic route,&quot; the release said. 
 
&quot;However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air-transport services up to the limit of 49 per cent of their paid-up capital and subject to the laid-down conditions in the existing policy,&quot; it added. 
 
Maintaining the status quo, foreign airlines will be allowed to invest only up to 49 per cent in Indian carriers. 
 
The decision to relax FDI norms was taken at a meeting chaired by the Indian Prime Minister Narendra Modi here today. 
 
Interestingly, a proposal to hike the FDI limit from 49 per cent in local airlines in the draft civil aviation policy did not find a place in the final document, which was approved by the Cabinet on June 15. 
 
With regard to airports, the government has permitted 100 per cent FDI in brownfield projects through automatic route. 
 
Currently, 100 per cent FDI is allowed through the automatic route in greenfield airport projects while it is 74 per cent in brownfield ones. 
 
&quot;With a view to aiding in modernisation of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100 per cent FDI under automatic route in brownfield airport projects,&quot; the release said. 
 
Back in 2012, the UPA government had permitted 49 per cent FDI in domestic airlines by foreign carriers. The move paved the way for setting up of two new airlines -- Vistara and AirAsia India -- and investment by Etihad Airways in Jet Airways. 
 
(PTI)

49% will be through the automatic route, anything more, and a nod from the government will be required

Foreign investors, barring overseas airlines, can now have up to 100 per cent stake in local carriers, the Indian government today said unveiling significant reforms. Besides, the norms for foreign direct investment in brownfield airports have been relaxed. Aimed at attracting more funds into the aviation sector which has high growth potential, the National Democratic Alliance's latest measure comes less than a week after the unveiling of the National Civil Aviation Policy. The announcement also comes against the backdrop of persisting concerns over ownership and control at local carriers where foreign players have a substantial stake. Now, 100 per cent foreign investment will be allowed in "scheduled air transport service/domestic scheduled passenger airline and regional air transport service", an official release said. Only non-airline players will be allowed to bring in 100 per cent foreign direct investment in local carriers. Under the new set-up, 49 per cent will be through the automatic route and for anything beyond, a nod from the government will be required. At present, up to 49 per cent FDI is permitted in scheduled airlines. "For NRIs, 100 per cent FDI will continue to be allowed under the automatic route," the release said. "However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and non-scheduled air-transport services up to the limit of 49 per cent of their paid-up capital and subject to the laid-down conditions in the existing policy," it added. Maintaining the status quo, foreign airlines will be allowed to invest only up to 49 per cent in Indian carriers. The decision to relax FDI norms was taken at a meeting chaired by the Indian Prime Minister Narendra Modi here today. Interestingly, a proposal to hike the FDI limit from 49 per cent in local airlines in the draft civil aviation policy did not find a place in the final document, which was approved by the Cabinet on June 15. With regard to airports, the government has permitted 100 per cent FDI in brownfield projects through automatic route. Currently, 100 per cent FDI is allowed through the automatic route in greenfield airport projects while it is 74 per cent in brownfield ones. "With a view to aiding in modernisation of the existing airports to establish a high standard and help ease the pressure on the existing airports, it has been decided to permit 100 per cent FDI under automatic route in brownfield airport projects," the release said. Back in 2012, the UPA government had permitted 49 per cent FDI in domestic airlines by foreign carriers. The move paved the way for setting up of two new airlines -- Vistara and AirAsia India -- and investment by Etihad Airways in Jet Airways. (PTI)

India allows FDI in aviation sector, barring foreign airlines

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Repo Rate Hits 6%: What You Must Know Before FD Returns Shrink Further

Should You Rethink Your FD Strategy Post MPC?

'It's my hard-earned money, not proceeds of crime', Jacqueline Fernandez on FDs attached by ED

India allows FDI in aviation sector, barring foreign airlines