Time to lock your money

Experts are of the opinion that there will not be further rise in the interest rate on deposits. Hence investors are advised to exploit the current higher rate and lock their money with banks.

“You still have an opportunity to lock in your money at these rates. Those who are essentially looking at bank fixed deposits should try to lock in their money for a possible longer period. They can also look at fixed maturity plans (FMPs) with comparatively long term," says Sadagopan.

"Another great option for those looking to lock in their money for a really long period is tax-free bonds. Those with a higher risk appetite can consider investing in non-convertible debentures and bonds."

"You can invest in short-term debt funds and dynamically-managed funds with a time-frame of 15-18 months and earn around 12 percent in returns," says Sundararajan. "We believe that people who have been waiting on the sidelines should get into these schemes as bond yields are likely to come down in the next few months," he says.

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