FD interest rates: Should investors lock their savings in fixed deposits now?

livemint.com:

In view of the banks raising their fixed deposit (FD) interest rates in the recent past, investors are recommended to lock some of their savings in fixed deposits (FDs) at the prevailing high rates.

It is vital to mention that most private and state lenders have recently raised their interest rates, while a few have introduced special interest schemes. 

For instance, Bank of Baroda offers 7.15 percent per annum on 399-day fixed deposits under what is known as Baroda Tiranga Plus Deposit Scheme. Likewise, Bank of India has introduced Super Special Fixed Deposit offering a higher rate of 7.5 percent for large deposits. 

The financial institutions, which have recently raised their term deposits include State Bank of India (SBI), Bank of Baroda, Kotak Mahindra, Axis, DCB Bank and ICICI Bank. 

Lenders which have started offering over 7 percent on their one-year deposits include ICICI Bank (7.25 per cent) and DCB Bank (7.15 percent).

At the same time, banks which offer over 7 percent on longer duration deposits include Bank of Baroda (7.25 percent for 2-3 years), HDFC Bank (7.10 percent for 15-18 months) and Axis Bank (7.10 percent for 15 months onwards).

There are two key advantages of locking your savings in the fixed deposits at the current interest rate. One, the interest rates have risen substantially in the past few months as a result of the RBI’s monetary policy. Second, the interest rates may see a fall towards the end of this calendar year. So, before the interest rates start to decline again, it is advisable to lock the prevailing rates.

One financial expert Livemint spoke to believes that those investors whose financial goal is 2-3 years away can now lock the required amount in a fixed deposit because there is