Next to gold, fixed deposits or FDs are the sentimental favorites of investors across India. Safety of investment and predictability of income are two reasons that have endeared FDs to investors. However, FD interest rates have remained muted over the past few years.

In the context of interest rates climbing, floating rate FDs appear to provide the possibility of higher returns along with safety and predictability. However, this needs to be analyzed in the backdrop of the drivers of deposit rates.

Read the full article published originally on Financial Express: Floating Rate FD: Is it a Good Idea?