RBI to increase intrest rate for deposits in all the banks. whether it's right time to invest in F.D or R.D

Question

Due to inflanation Reserve bank of india is going to increase rate of intrest for deposits . whether it is right time to invest in recurring deposits or fixed deposits.

Answer 1

There is no surity that RBI would increase rates of interest. After all, now that inflation is 11%, which govt can afford an interest rate that is higher than 11%. Also it is unclear what effect it will have on recurring deposits and fixed deposits.

Answer 2

Increasing the interest rates is still on the cards.  Previously the RBI had increased the repo rates on two occassions.

But any rate increase will definitely be expected with inflation on a 13 yr high.  So this is right time to invest in FDs.