Fixed Deposit Rates: Top NBFCs Fixed Deposit(FD) Rates

Top NBFCs Fixed Deposit(FD) Rates

It is common knowledge that while banks and NBFCs provide equally secure Fixed Deposit investment options, NBFCs offer a much higher interest rate than banks.

Recurrence of interest rates may be cumulative, monthly, half-yearly, or yearly. Fixed Deposits offered by NBFCs function the same way as the ones offered by banks with an additional advantage of security rating by credible agencies. 

The return that you are likely to get on these Fixed Deposits would be based on the tenure that you choose and the interest rates that you are getting.

While banks are strictly regulated and expected to follow a certain range of interest rate, NBFCs have the flexibility to offer a higher interest rate along with several additional benefits.

Here are a few non-banking financial companies that offer lucrative interest rates in India when it comes to Fixed Deposits:

Organization’s NameICRA / CRISIL RatingHighest FD Rate (annually)
Bajaj Finserv Ltd.CRISIL FAAA8.95 %
Mahindra Finance Ltd.CRISIL FAAA9.00 %
Shriram Transport Finance LtdCRISIL FAAA8.88 %
PNB Housing Finance Ltd.CRISIL FAAA8.45 %
Shriram City Union Finance LtdICRA MAA+8.88 %
Gruh Finance Ltd.CRISIL FAAA8.25 %
LIC Housing Finance LtdCRISIL FAAA8.35 %
Sundaram Home FinanceICRA MAAA8.00 %
HUDCOICRA MAAA7.50 %
HDFC LTDICRA MAAA7.98 %
  • FAAA – high safety / most stable

Investing in an FD

A fixed deposit enables a person to park their money into an account for a specific tenure, based on which they can also get high-interest rates.

The interest earned on an FD account is determined depending on the deposited amount and the tenure.

An FD account with a higher deposited amount will pull in higher FD interest rates and extra benefits. The individual can deposit a specific measure of cash for at least one month and a maximum of ten years.

With NBFCs, while you have the benefit of availing a higher interest rate than most banks and financial companies, you also get the benefit of flexible tenors and the ability to manage your complete FD account online.

The profits on an FD can fluctuate because of numerous components relying upon the kind of the FD account, type of the investor.

Most financial companies adhere to the RBI’s rules while offering the loan on your FD account, as well as the additional benefits.

When you create an FD account with an NBFC, you can also avail the benefit of having multiple FDs with high-interest rates.

This could facilitate FD laddering which in turn would help in managing your short-term and long-term financial goals effectively.

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The variables influencing Fixed Deposit interest rates are as per the following: 

  • Arrangements Framed by RBI – according to RBI rules, the adjustment in Cash Reserve Ratio (CRR) and Repo rate influences the interest rate of all financial instruments including the fixed deposit. 
  • Subsidence – Recession results in the destruction of interest rate offered on fixed deposit. In the season of retreat, RBI is compelled to discharge the assets in the market which it accomplishes by bringing down the rates on money hold of the banks. 
  • Expansion – Inflation positively affects a term deposit interest rate. The expansion might result in increasing the interest rates on Fixed Deposits and adding more profits in the returns to the investors.  
  • Current State of Economy – Economic state of the nation is the main consideration that influences the fixed deposit interest rate. At the point when the credit prerequisite of individuals takes off the banks offer fixed deposit at an appealing rate of interest to satisfy the rising credit needs.

However, NBFCs like Bajaj Finance tend to offer additional benefits other than the ones that are provided by other banks on Fixed Deposits.



Most banks charge a penalty when it comes to premature withdrawal, which usually ranges from 0.5%-1% of the fixed deposit amount.

However, with many NBFCs such as Bajaj Finance, you are also given the option of premature withdrawals without major penalties.

Investing in Fixed Deposits offered by NBFCs could be a great way to earn returns on your accumulated savings with minimal hassle and complete safety.




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