New Delhi, May 10 -- Fixed deposits (FDs) continue to remain a preferred investment option for conservative investors seeking stable and predictable returns. Unlike market-linked investments such as equities and mutual funds, which may witness volatility based on market conditions, FD returns are largely influenced by repo rate movements. Banks revise FD interest rates based on changes in repo rate announced by the Reserve Bank of India each quarter.

The repo rate refers to the rate at which RBI lends money to commercial banks. When the Central bank increases the repo rate, banks' borrowing costs rise, often prompting lenders to increased FD interest rates to attract more deposits. In the contrary, when RBI cuts the repo rate, banks may ...