This week, Monika talks about the coming fall in bank fixed deposit (FD) rates as the Reserve Bank of India signals a low-interest rate environment ahead. With major banks like SBI already reducing savings account interest to 2.5%, Monika explains why risk-averse investors should act now to lock in current FD rates. She discusses strategies like laddering across time periods and breaking large deposits into smaller ones for flexibility. She also touches on senior citizen benefits, special FD schemes, and why she prefers sticking with larger banks over smaller or fintech-based FD platforms for safety.

She then explains deposit insurance in India. Monika breaks down how DICGC covers your deposits up to ₹5 lakh per bank, including both principal and interest, and clarifies how coverage works if you hold accounts in multiple banks or under different account types. This helps listeners understand how to spread deposits smartly for maximum safety.

In audience questions, Arvind asks whether he should surrender or make paid-up two LIC New Jeevan Anand policies bought early in his career, and seeks advice on getting health insurance for his senior citizen parents. Vishak wants to know how to deploy a large lump sum sitting idle in his bank account and whether to surrender an ongoing LIC policy. Finally, an anonymous listener shares how he’s coping financially after a recent job loss and asks whether he should pause mutual fund investments or continue them using his savings.

Chapters:

(00:33 – 05:44) Bank FD rates will fall: Why you should lock in now 

(05:45 – 07:12) How deposit insurance protects your money

(07:13 – 11:20) LIC surrender vs paid-up and getting health cover for parents

(11:21 – 13:31) Deploying a lump sum and what to do with a dud LIC policy

(13:32 – 16:21) Managing finances after a job loss: Building a cushion and staying on track

If you have financial questions that you’d like answers for, please email us at ⁠[email protected]⁠

Monika’s book on basic money management

⁠⁠https://www.monikahalan.com/lets-talk-money-english/⁠⁠

Monika’s book on mutual funds

⁠https://www.monikahalan.com/lets-talk-mutual-funds/⁠

Monika’s workbook on recording your financial life

⁠⁠https://www.monikahalan.com/lets-talk-legacy/⁠⁠

Calculators

⁠⁠https://investor.sebi.gov.in/calculators/index.html⁠⁠

You can find Monika on her social media @monikahalan. 

Twitter ⁠⁠@MonikaHalan⁠⁠

Instagram ⁠⁠@MonikaHalan⁠⁠

Facebook ⁠⁠@MonikaHalan⁠⁠

LinkedIn ⁠@MonikaHalan⁠

Production House: ⁠www.inoutcreatives.com⁠

Production Assistant:⁠ Anshika Gogoi