FDs are value less when Inflation sores up

 

The RBI said that the Consumer Price Index (CPI)-based inflation is now projected to be at 5.3% for 2021-22 with risks evenly balanced.

At this level, the fixed deposit for one year with the country's largest lender State Bank of India (SBI) would rather earn negative interest. The real interest rate would be (-) 0.3% for the saver.

Revision in Interest Rates On Retail Domesticterm deposits (Below Rs. 2 crore) interest rates revised w.e.f. 08.01.2021 by State Bank of India

Tenors	Existing Rates for Public w.e.f. 10.09.2020	Revised Rates For Public w.e.f. 08.01.2021	Existing Rates for Senior Citizens w.e.f. 10.09.2020	Revised Rates for Senior Citizens w.e.f. 08.01.2021
211 days to less than 1 year	4.40	4.40	4.90	4.90
1 year to less than 2 year	4.90	5.00	5.40	5.50

 

 It is always worthy to have your savings spread /diversified. Diversification need depends on your life stage among others. Mutual funds provide a good platform for different risk levels. consult your investment advisor before investing.