What are the chances of fd rates going up in 2015?

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Arun Crypto (Querist)

17 May 2015 If there is a downfall trend, I would like to invest in the long term (say 2 years) to lock the rates. If there is not, I would like to invest for 1 year.

Please advise.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

18 May 2015 Cant predict dear....chances are low

Nikhil Kaushik

Nikhil Kaushik (Expert)

18 May 2015 IF RBI keep nudging banks to reduce lending rates, deposits rates will have to come down as a consequence. So don't expect too much on upward movement in interest rates

Arun Crypto

Arun Crypto (Querist)

18 May 2015 Can i go ahead and lock investment tenure longer then?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

03 August 2025 Given the RBI’s stance in 2015 to nudge banks to reduce lending rates, it generally puts downward pressure on deposit rates as well. So, the likelihood of FD rates going up significantly in 2015 is quite low.
If your priority is to lock in a decent rate now for stability, investing for a longer tenure (like 2 years) makes sense to avoid the risk of rates falling further. But if you think you might need liquidity or expect a slight rate rise due to unforeseen economic changes, a shorter tenure (1 year) could be better.

Bottom line:

If you want safety and assured returns, lock for longer.
If you want flexibility and can monitor rates closely, go for shorter tenure.

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