shall i continue my investment in bank deposit????

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My client, Anusridi wrote : "Dear Srikanth, My Bank FD has recently matured. If I renew now, I will be getting 8.25% commission. Shall I continue the same or Shall I invest in a Debt Mutual fund. Please give me your valuable suggestion " Srikanth replied : "Dear Anusridi, Bank FDs are safe and secure. But they are always low on my ranking because of their low payout. Going forward, with the Indian Inflation getting into the negative terrority, interest rates are sure to go on a downward spiral. So, you need to act fast, before Interest rates plunge further. Of course, one factor supporting interest rates is the India's bulging Fiscal Deficit. For a very short term investment, you can consider Liquid Funds. For a slightly longer period, say 1 year, you can consider Gilt Funds or Active Income Funds like HDFC Income fund, Birla Income Fund, etc. Besides these, you can also consider investing in Corporate Fds. Currently, Unitech and JP Associates are giving Interest in the range of 11%, which is quite high compared to existing rates prevailing in the market. Corporate FDs are quite secure too and can be considered as a Diversification Tool. Best of luck, Srikanth.. Dear Mylotters, What would you suggest my client Anusridi???? What should he do??? continue in Bank Fds or consider alternative investment. Do write in and give your valuable suggestion.