It is highly anticipated given the global slowdown situation and Indian economy landscape that RBI is most likely to again cut rates by some points if not sharply. Also since the February rate cut, the deposit rates have not been slashed downward, which have to be in line with the broader monetary policy rates.
Also, as per the new norm, RBI has asked banks to peg its interest rates with the external benchmark and for it banks have been resorting to parameters such as repo rate. So, if you are too looking at safe avenues for short term and do not want to compromise on return, the time is just right as future rate cuts will nudge banks to take returns lower for depositors.
Here is a deposit option that can fetch you high returns
And as is the situation now, it is a good idea to lock in at peaks of deposits rates, though in the past the rates have surged to close to 9%.
DCB Bank, a private banking entity for a shorter span of 15 months to less than 24 months is offering a return of 8.05%. Also for its 36-months deposits, the return are of the same order.
Banks have avoided deposit rate after the February rate cut because of the considerable lag in deposit growth rate.
Of the major traditional banks, for a shorter tenure of 2-3 years offers the highest return in comparison to others whose return ranges between 6.5-7.5%. Nonetheless, there are few newly emerged small finance banks that offer a better deal in comparison.
Also, booking your investments for a shorter tenure makes sense as post the maturity of your investments, you will be able to lock in the future higher rates if the case may be. Further, it helps to get away with the reinvestment risk.