Is it a good strategy to invest in FDs ?

State Bank of India (SBI), the country’s largest lender, today cut fixed deposit (FDs) rates by 50 basis points across tenures. For instance, for FDs below Rs 15 lakh with maturity of one year to less than two years will be 8.50 percent. Rates on FDs above Rs 15 lakh and less than Rs 1 crore too have been cut. For instance, a 180-day FD, which had 8%, will have 7.50%. The rates are effective from 7 September. Should you invest now: Other banks are expected to follow SBI. So, should you start parking funds in FD before other banks too cut rates? “Yes” says, Pankaj Mathpal, Mumbai-based, Certified Financial Planners. “Rates are expected to fall further. If you are looking for a risk-free investment, investing in an FD, now is a good idea.” Read full article here