NBFCs Now Offer Attractive FD Rates up to 8.60% p.a.

By Peterson, content writer  |  Friday, 26 May 2023, 04:04:16 PM IST

NBFCs Now Offer Attractive FD Rates up to 8.60% p.a.

Fixed deposits are low-risk financial tools popular among risk-averse investors. Here, you can invest a specific amount for a chosen tenor at a predetermined interest rate. Then, upon maturity, you get the principal amount and the interest earnings.

With banks and NBFCs providing numerous FD plans at competitive interest rates, you are often spoilt for choice. Among the top options is the Bajaj Finance FD, which offers interest rates up to 8.35% p.a. Furthermore, senior citizens get an additional 0.25% on the same, taking the interest rate up to 8.60% p.a.

Paying attention to the interest rate you receive is crucial simply because it affects your returns. A higher interest rate would result in better returns and vice-versa. Moreover, there are other features of an FD that make it a worthy choice to have secure financial growth.

These features include flexible tenors, digital services, and more. All of these are available with the FDs issued by top financial institutions. Continue reading to understand the benefits of investing in an NBFC fixed deposit.

Competitive Interest Rates

As mentioned, interest rates influence the returns you earn on your investment. As such, a high interest rate results in higher returns. Moreover, NBFC issuers usually have higher rates, as compared to those offered by banks.

Also, the RBI had increased the repo rate by 250 bps since May 2022, and NBFC FD issuers now offer lucrative interest rates, allowing you to secure better returns.

Given below is a tabular overview of interest rates offered by top issuers for non-senior citizens:

Stable Returns on Your Investment

Fixed deposits are among the safest low-risk investment options because the FD rates remain unaffected by market conditions once the investment begins. As such, the returns you earn from it are not volatile but stable.
 
Moreover, Bajaj Finance FD and other NBFC FDs come with a rating accredited by the top credit rating agencies in India, like CRISIL and ICRA. These ratings speak to the safety and stability of your investment and returns. You can check this before investing to ensure your corpus is secure.

Easy Investing Process with Minimal Documentation

Booking a Bajaj Finance FD or other NBFC fixed deposit includes a simple process that is available online and offline. Generally, FD issuers require only a few documents from your end and offer an investment process you can complete in just a few clicks.

The general document list includes the following:

  • Your ID proof- Aadhaar Card/PAN Card/Voter ID Card
  • Your address proof- Aadhaar Card/PAN Card/Voter ID Card/Electricity Bill
  • Your passport-size photograph

Do note that this list is indicative, and the requirements may vary based on your issuer. In most cases, you will need to submit basic KYC paperwork to invest.

Flexible Investment Tenor

Most FDs, including the Bajaj Finance FD and other NBFC FDs, offer flexible tenors on your investments. The investment tenor can range anywhere between a few days to a few years, giving you the option to plan for various goals.
 
Remember that the interest you receive depends on the tenor you choose, so the returns will also differ for every tenor. You can use an FD interest calculator to estimate your returns before investing.
 
Doing so will allow you to choose investment terms and the FD that best aligns with your goals. In addition, the FD interest calculator is a free, quick, and easy tool you can use from anywhere and anytime.

Tax Benefits

Certain fixed deposits offer tax benefits, in the form of deductions. These tax deductions reduce your taxable income and, as a result, your overall tax liability. These tax benefits are only available on the tax-saved FD and many FD issuers offer a tax-saver fixed deposit.

Generally, the investment tenor for these FDs is 5 years. The tax deduction is available under Section 80C of the Income Tax Act. You can save a maximum of ?1.5 Lakhs under this section. Remember that there are other eligible investment avenues under this section, and the maximum limit is cumulative of all the avenues.

When you invest in a fixed deposit, you get the benefit of locking in the interest rate at the time of investment. In addition, your investments remain secure since FD interest rates remain unaffected by market fluctuations.
 
Furthermore, you can compare the returns of available FD schemes in the market using an FD interest calculator. The tool only requires basic investment terms to estimate your returns, based on which you can compare and find the best option.

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