RBI Rate Cut: EMIs Down, FD Returns Squeeze Investors

• RBI cut the repo rate by 0.25% to 5.25% on December 5, bringing relief to borrowers but raising concerns for FD investors.
• Experts state the repo rate cut will not have an immediate impact on FD interest rates.
• Banks have already significantly reduced FD interest rates by 0.5% to 1% since February, with some large banks like SBI and HDFC Bank cutting rates from 7.1% to 6.6%.
• Investors are advised to diversify their FDs across different tenors and consider alternatives like corporate FDs, debt mutual funds, and government bonds.

Why It Matters: RBI's rate cut impacts your loan EMIs and savings returns.