CPI Inflation came in sharply lower for the month of April 2015 and along with it industrial output has fallen. What this means is that the Reserve Bank of India (RBI) will cut interest rates to push growth higher as fears of inflation recede.

The Reserve Bank of India officials meet on June 2 to decide on interest rates. Analysts believe that they would cut interest rates much ahead of the policy as they have done in the past two meetings.

When interest rates are cut, fixed deposit interest rates might also fall. Not necessarily though. Broadly speaking by the end of the year you may end-up getting at least 0.50 per cent lower interest rates. Here are two fixed deposits that you must buy before interest rates fall further.

KTDFC

To begin with you must understand that company deposits are not safe. Therefore, you must look at the safest bets.

KTDFC or Kerala Road Transport Finance Corporation is a government of Kerala undertaking. The deposits are guaranteed by the government of Kerala.

It's interest rates are the best ant not offered by any central or state government in the country.

Take a look at the interest rates for under Rs 25 lakhs for non senior citizens.

Now senior citizens get an extra 0.25 per cent and an extra 0.50% if the amount is over Rs 25 lakhs. As mentioned earlier this is an excellent interest rate.

HDFC

The deposits of HDFC are again a superb option for those desiring a slightly higher interest rate. Interest rates on cumulative deposits are as follows:

The HDFC Deposits are very safe and offer the highest safety as they have a AAA rating from both CRISIL and ICRA for 20 consecutive years.

The interest rates are higher than banks and come with good ratings. It's advisable to go in for a longer tenure as interest rates in the economy may fall.

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