Bank FD to fetch negative real interest with elevated inflation

Last week, the RBI said that the Consumer Price Index (CPI)-based inflation is now projected to be at 5.3 per cent for 2021-22 with risks evenly balanced. At this level, the fixed deposit for one year with the country's largest lender State Bank of India (SBI) would rather earn negative interest. The real interest rate would be (-) 0.3 per cent for the saver.

from Banking/Finance-Industry-Economic Times https://ift.tt/3iTxqQd