How to make your savings earn more for you

How to make your savings earn more for you

With repo rates lowered by 50 basis points earlier this week, the RBI has set the tone for lower rates. It has lowered rates by 125 basis points since the beginning of this year.Punjab National Bank has announced a cut of 25 bps in FD rates from October 5 across various maturities.

Financial planners expect deposit days and small savings rate to fall further in the coming months, as interest rates head south. Given such a scenario, small savers would do well to diversify their portfolio across a number of products such as deposits, postal savings and mutual funds, so as to optimise returns from their investments and lower their tax burden.

Source : http://economictimes.indiatimes.com/