Nilesh Shah on Fixed Deposits

When I started my career, bank deposits used to give 16-18 percent.

Then it fell to 13-15 percent, thereafter it fell to 9-10 percent.

Today they are available at 7-8 percent.

I have no doubt that 3-5 years down the line, bank fixed deposit rates could be 4-5 percent.

But will you be happy with 4-5 percent returns?

-said Nilesh Shah,MD Kotak Mahindra AMC

One reply on “Nilesh Shah on Fixed Deposits”

Would it not be more relevant to ask whether interest rates on bank FD are more or less than the prevailing inflation rate in the country. I am sure, if bank FD rates fall in the future to 4 to 5%, inflation would also fall in the same region.
Bank FD rates have never beaten inflation. It just try to manage at roughly the same level as inflation.

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