RBI pauses rate cuts in February MPC: Why FD laddering makes sense now

The Reserve Bank of India (RBI) has decided to hold the repo rate at 5.25% in its February 2026 Monetary Policy Committee meeting, maintaining a neutral stance on monetary policy. For savers, this pause presents a unique opportunity to rethink fixed deposit (FD) strategies.

This is the first monetary policy review after Finance Minister Nirmala Sitharaman announced the Budget for financial year 2026-27.

Why FD laddering makes sense now

With the RBI keeping repo rates unchanged, FD rates may not rise immediately.

Experts recommend FD laddering, a strategy where investments are split across multiple FDs with staggered maturities, to maximise returns while maintaining liquidity.

Money experts suggest that with the RBI maintaining a pause, investors can now plan a balanced ladder of 1-year, 2-year, and 3-year FDs, ensuring they benefit from any potential rate hikes or market changes.

FD laddering is a smart and practical investment strategy where you divide your FD investment into multiple parts, each with different maturity periods, instead of investing the entire amount in a single long-term deposit.

Since February 2025, the RBI has reduced the policy rate by 125 basis points. In its previous policy review in December, it had trimmed the repo rate by 25 basis points to 5.25 per cent. For FD investors, this signals a crucial decision point. Many have been waiting on the sidelines, expecting higher FD interest rates in the near future.