With the economic slowdown and rising inflation, it is natural for you as an investor to be cautious with your money. With the consumer price inflation for January 2020 recorded at 7.59%, the highest since May 2014, having a way to earn steadily to enjoy inflation-beating returns is key to growth. Otherwise, inflation will erode the value of your money over time. Further, following the recent RBI monetary policy review, leading banks across the nation dropped their FD interest rates, putting greater strain on the already nominal credit growth of just 7%.

While the repo rate was left unchanged at 5.15%, the monetary policy committee (MPC) has launched long-term repo operations (LTRO). Through this, RBI will lend Rs.1,00,000 crore to banks at its policy repo rate, 5.15%. Experts say that while it is a masterstroke toward growth, it is also likely that bank deposit rates will fall in response. The LTRO is in effect as of February 15, 2020, and may also lead to a decrease in the yield of small savings schemes.