RBI Rate Cut: FDs vs. Bonds Dilemma for Investors

• RBI's recent repo rate cut benefits borrowers but raises concerns for FD investors due to potential lower interest rates.
• Banks have started reducing FD interest rates (e.g., SBI), making bonds an attractive alternative for better long-term yields.
• Bonds offer capital gains when repo rates fall but carry market risk, unlike the guaranteed returns of FDs.
• Experts advise investors to consider their risk appetite and investment horizon, suggesting FDs for security and bonds for long-term, risk-tolerant investors.

Why It Matters: RBI's repo rate cut forces investors to rethink safe FDs versus riskier bonds.