FD laddering is a strategy where an investor spreads their investment across multiple FDs with different tenures and interest rates, creating a ladder of maturity dates.
Fixed deposits have once again become attractive investment areas due to the rising interest rates. The Reserve Bank of India (RBI) has increased the repo rate by 250 basis points (bps) since May 2022. Banks have also hiked the interest rates on fixed deposits in a bid to lure investors. aaa
The small banks offer the highest interest rate for fixed deposits with the average interest rate at 7.6 per cent for FDs with a time span of three years.
Fixed deposit interest rates are on the rise, and the majority of banks are now promising returns that outpace inflation as a result of the Reserve Bank of India s (RBI) uptick in the repo rate of 250 basis points (bps) since May 2022.