Recently SBI reduced their savings account interest rate to 3.5% which is very low. How do you guys prepare strategies in such a low interest rate scenarios. Is it advisable to put your money in the Established large caps / Strong fundamental companies like RIL , HDFC , TATA Motors , L&T , ITC etc. even if it gets 8-9% return in an year , its better than the very low interest offered by bank and later when some good opportunity comes , money can be moved from one stock to another. Or the money can be used for some personal work in short term.
Recently due to high valuations its difficult to find good bargains. But at the same time money kept in the Savings account is not earning anything for you and value of the money is going down. How should we proceed in such environment. How not to make your money sitting idle and not earning anything for you.
Would like to hear what other people think about it.
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