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It is fairly natural to lean towards NBFCs for FDs because they provide the highest FD rates in India. It is advised to do thorough research and evaluate these organisations’ credit ratings before choosing an NBFC to put your money in FDs. This is to check whether or not the company that is providing the greatest FD rates is reliable to invest in. Government banks provide FD rates of 6.85% for their five-year FDs. On the other hand, companies like Bajaj Finserv offer interest rates on their FDs of around 8.75%. Other non-banking financial firms with greater interest rates include Mahindra Finance, PNB Housing Finance, LIC Housing Finance, and Shriram City Union Finance.
FDs from NBFCs could seem more appealing to you because of the highest FD rates in India. However, doing your homework before choosing an NBFC is advised to ensure the security of your deposited funds.
Probably the first thing that investors notice is the rate of interest on FDs. However, you shouldn’t rely solely on this when deciding whether to invest in fixed deposits, especially if you’re thinking about NBFC FDs. You must take into account NBFCs’ credit ratings for this. In general, organisations with a rating of AAA are thought to be the safest, especially when it comes to meeting financial obligations on time. These companies are regarded as the best ones to invest in.
However, the best-rated companies have occasionally failed to demonstrate security. The credit ratings that the NBFCs receive from several rating organisations are prominently displayed. Analysts agree that organisations with good ratings can still go bankrupt, but having a good rating gives the impression that the company is doing well. However, you must learn how to calculate fixed deposit interest amounts before investing.
Top 5 NBFCs for FDs:
Check out some of the best NBFC FDs if you’re considering investing in fixed deposits provided by these non-banking financial institutions.
1. PNB housing finance
The Punjab National Bank sponsors PNB Housing Finance, a registered housing finance business. This NBFC provides a tempting fixed deposit plan with ratings of AA/Stable by CARE and FAA+/Negative by CRISIL. View the interest rates for the different FD plans offered by the NBFC below.
The interest rates are similar for cumulative FDs up to Rs. 5 crore and non-cumulative FDs up to Rs. 5 crore with annual payout options. The interest rate is 7.35% for 1-year FD, 7% for 2-year FD, 7.0% for 3-year FD, 7.40% for 4-year FD, and 7.50% for 5-year FD.
2. Mahindra Finance
In recent years, Mahindra Finance, a reputable provider of auto loans, has also become a trustworthy source of investments. India Ratings has given the company’s fixed deposit schemes the IND AAA or stable rating. Following are the interest rates for various FD categories.
This NBFC provides two types of FDs, and they are Samruddhi cumulative FDs and Samruddhi non-cumulative FDs. The rates are similar for cumulative FDs up to Rs. 1 crore and non-cumulative FDs up to Rs. 1 crore with an annual payout option. The interest rate is 7.05% for 1-year FD, 7.50% for 2-year, 3-year, 4-year, and 5-year FDs.
NBFC interest rates are increased for senior citizens by 0.25% annually on all of the aforementioned deposits.
3. Bajaj Finance
The most diverse NBFC in India, Bajaj Finance also provides fixed deposits, which are well-liked by investors nationwide. You may be sure that your investments are safe because CRISIL has given this NBFC’s fixed deposits a safety grade of AAA or Stable. See below for the NBFC FD rates and try to calculate it just by using an FD calculator.
This NBFC provides cumulative fixed deposits up to Rs. 5 crores with 7.40% for a 1-year term and 7.55% for a 2-year term. This interest rate for 3-year, 4-year, and 5-year FD is 8.05%. The non-cumulative FDs up to Rs. 5 crores come with 7.16% p.a. interest for a 1-year term and 7.25% p.a. interest for a 2-year term. The interest rate is 7.77% p.a. for 3-year, 4-year, and 5-year terms.
For elderly persons, Bajaj Finance offers FD rates that are 0.25% higher annually.
4. LIC housing finance ltd.
This NBFC provides FDs below Rs. 20 crores with 8.15% p.a. interest for 1-year and 18-month terms. The interest rates are 8.20% p.a., 8.25% p.a., and 8.30% p.a. for 2-year, 3-year, and 5-year terms, respectively.
This NBFC also provides Rs. 20 crores and above FDs with 8.30% interest for 1-year and 18-month terms. 8.40% p.a. interest rate is applicable on 2-year and 3-year terms. The 5-year FDs provide 8.50% p.a. Interest.
5. Shriram city union finance
This NBFC provides cumulative FDs with an 8.25% p.a. interest rate for a 1-year term. The effective annual interest rates are 8.87%, 9.84%, 10.29%, and 11.13% for 2-year, 3-year, 4-year, and 5-year terms, respectively.
Now look at the annual interest rates of non-cumulative FDs. The rates are 8.25% and 8.50% for 1-year and 2-year terms. 3-year and 4-year terms share the same interest rate, which is 9%. The 5-year term comes with a 9.25% interest rate.
