What should FD investors do as RBI hikes repo rate?

RBI's 25-basis-point repo rate hike to 5.50% could push banks to raise FD rates as they compete for deposits. Investors should split FDs across different tenures instead of locking money in long-term FDs right away and track rate revisions by banks and NBFCs before investing. Laddering FDs, by splitting money across deposits with different maturity dates, improves liquidity and flexibility.