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RBI Repo Rate Hike Increases EMI Burden: Is It The Right Time To Invest In FDs?
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News18•07-10-2026, 12:27
RBI Repo Rate Hike Increases EMI Burden: Is It The Right Time To Invest In FDs?
- •The Reserve Bank of India has increased the repo rate by 25 basis points to 5.50 percent after nearly four years.
- •The hike will make home, car, and personal loans more expensive, thereby increasing the monthly EMI burden for borrowers.
- •On the positive side, the rate hike is set to push up bank deposit rates, offering higher returns to FD investors.
- •Banks are expected to raise FD interest rates in the coming days or weeks, potentially introducing special festive schemes in October and November.
- •Investors planning to deposit large amounts in FDs may benefit from waiting a few weeks to secure higher interest rates.
Key Questions Answered
The Reserve Bank of India has raised the repo rate by 25 basis points, bringing it to a total of 5.50 percent.
The repo rate increase will make home, car, and personal loans more expensive, leading to higher monthly EMI installments for borrowers.
Waiting a few weeks gives banks the opportunity to increase their fixed deposit interest rates following the repo rate hike, allowing investors to benefit from higher returns.
