FD Interest Rates: Should You Invest in FDs with NBFCs or Banks?

FD Interest Rates: Should You Invest in FDs with NBFCs or Banks?

A fixed deposit is the safest instrument when it comes to investing your hard-earned money. It remains untouched by market volatility and hence, returns are assured. It also grows your money systematically and fetches good returns to meet short-term goals.


NBFC FDs have an edge over Bank FDs

Traditionally, people have always opted for FD with banks. But, these days, FDs offered by Non-Banking Financial Companies (NBFCs), known as Company FDs or Corporate FDs, are also emerging as a popular choice among investors. The interest rates offered by banks are being slashed in recent times due to repetitive repo rate cuts by the RBI. Also, some banks are operating under the pressure of non-performing assets (NPAs), resulting in rare but still possible defaults in FD payments.

Company FDs make a wise investment option when you want to:

  • Avail higher interest rate than banks.
  • Invest in risk-free FD with timely payment.
  • Diversify your FD and overall investment portfolio.
  • Meet your wealth generation goals with high ROI.
  • Avail advanced features and benefits that bank FDs do not offer.

You can easily compare the returns on bank FDs vis-a-vis NBFC FDs using a reliable and accurate FD calculator online. After you enter investment amount, interest rate and tenor, you will get complete details about how your savings will grow for the selected tenor. If you have chosen periodic interest payouts, fixed deposit interest calculator will show the savings and returns accordingly.

Choosing the right Company FD

When you opt for a company FD, you should look for credit ratings. Higher the credit rating, more secure your money is. The company reputation also matters a lot. An NBFC having a long-standing brand value and customer trust will ensure everything to deliver on their promises.

Bajaj Finance FD is one of such company FD which outmatches the interest rates offered by banks. Currently, it offers attractive FD interest rate up to 7.85%, which is higher than most banks and peer NBFCs. Moreover, Bajaj Finance FD is one of the safest company FDs you can find.  It is the only Indian NBFC that has been accredited with S&P Global ‘BBB’ rating. Its FD enjoys highest stability ratings from ICRA and CRISIL. So, you can rest assured that your money is in safe hands.

Some other unique features that Bajaj Finance FD offers are:

  • Multi Deposit Facility: With the multi-deposit feature, you can invest in multiple FDs using a single cheque. You can lock-in different amounts and choose different tenors for each of these deposits by using this feature.
  • Systematic Deposit Plan: Make small monthly FD deposits ranging in 12-60 months tenor.
  • Online Application: A hassle free online fixed deposit account opening process.

The Bottom Line

A fixed deposit is the safest financial instrument to get guaranteed returns irrespective of market fluctuations. If you are looking for higher interest returns along with the security of investment and diversification of your portfolio, then it is a prudent decision to choose NBFC FD like Bajaj Finance FD over bank FDs.

Bajaj Finance FD is currently offering high interest rate up to 7.85% and has the top credit ratings among all NBFCs in the market. An FD calculator online is a handy tool to compare across all FD schemes. Before you invest in any FD, use a fixed deposit interest calculator, calculate your returns and growth of savings beforehand.

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