5 NBFCs Offering High Interest Rates on Fixed Deposits

Fixed Deposits (FDs) are preferred by many investors in India. They are popular for their guaranteed returns and safety. Traditionally, banks have been the primary issuers of FDs. However, Non-Banking Financial Companies (NBFCs) have also begun offering highly competitive interest rates. This might make them an attractive option for investors seeking higher returns.

FD Interest Rates Offered by NBFCs

Here are some of the NBFCs FD rates:

Disclaimer: Interest rates are applicable on FDs under ₹2 Crores as of 6th June 2024. Rates are subject to change as per the issuer’s policies. Please refer to the official website for more details. 

1. Bajaj Finance

Bajaj Finance is a popular NBFC in India, offering a range of financial products and services. It features attractive interest rates on FDs. This helps make it a beneficial choice among investors.

Bajaj Finance offers an interest rate of up to 8.85% p.a. for senior citizens on its Fixed Deposits. For non-senior citizens, the highest rate at present is 8.60% p.a.

Key Features:

• Tenor Range: Flexible tenors ranging from 12 to 60 months

• Safety Rating: Rated AAA/Stable by CRISIL, indicating high credit quality and low risk

• Easy Application: You can apply for a Bajaj Finance FD online. This could be done through digital financial marketplaces like Bajaj Markets bajajfinservmarkets.in

2. Shriram Finance

Shriram Finance is an NBFC that offers various financial products, including  FDs. The issuer is known for its focus on providing financial services to the underserved segment. Shriram Finance provides interest rates of up to 8.97% p.a. for senior citizens and up to 8.47% p.a. for non-senior citizens.

Key Features:

• Tenor Range: Tenors range from 12 months to 60 months

• Safety Rating: Rated AA+/Stable by ICRA

• Periodic Interest Payout: It features options available for monthly, quarterly, half-yearly, and annual payouts

3. LIC Housing Finance

LIC Housing Finance offers competitive interest rates on fixed deposits. This could make it a beneficial choice for conservative investors.It offers an interest rate of up to 8.00% p.a. for senior citizens and up to 7.75% p.a. for non-senior citizens.

Key Features:

• Tenor Range: Tenors range from 1 year to 5 years  

• Safety Rating: Rated AAA/Stable by CRISIL

• Easy Application: Opt for the online or offline application process to book FDs  

4. Mahindra Finance

Mahindra Finance FDs come at attractive rates, which could be ideal for those looking for reliable and high-return investment options. It offers an interest rate of up to 8.35% p.a. for senior citizens and up to 8.10% p.a. for non-senior citizens.

Key Features:

• Multiple Payout Options: Receive interest either on a monthly, quarterly, half-yearly, or annual basis

• Safety Rating: Rated AAA/Stable by CRISIL

• Application Process: Simplified application process is available both online and offline

5. Muthoot Capital

Muthoot Capital is a well-established NBFC offering competitive interest rates on FDs. It serves as a reliable option for investors seeking stable returns. The NBFC offers an interest rate of up to 9.00% p.a. for senior citizens and up to 8.50% p.a. for non-senior citizens.

Key Features:

• Tenor Range: Tenors range from 12 months to 60 months 

• Safety Rating: Rated A+/Stable by CRISIL

• Simple Application: Flexible application methods available to suit your convenience

How to Choose the Right NBFC for FD

Selecting the right NBFC for your FD involves considering several factors. These can go beyond just the interest rates. Here are some tips that could help you make an informed decision:

1. Credit Rating: Ensure the NBFC has a high credit rating. This indicates financial stability and reliability.

2. Tenor Flexibility: Look for NBFCs that offer a range of tenors. Find the right one that matches your financial goals, whether short-term or long-term.

3. Interest Payout Options: Consider whether you need regular interest payouts. Alternatively, see if you prefer cumulative interest, with payouts at maturity.

4. Premature Withdrawal Policies: Understand the penalties and conditions for premature withdrawal. This could be useful if you require liquidity before the FD matures.

5. Customer Service: Good customer service may make a difference in your overall experience. This can be from the application process to maturity amount payout.

NBFCs have become increasingly attractive for fixed deposit investments. This is majorly due to their high interest rates and reliable service. By investing in FDs with these NBFCs, you may earn high returns compared to traditional banks.

To make the most of your investment, you can make use of an FD calculator online. This can help you determine your potential returns. Whether you are seeking stability or looking to maximise returns, these NBFCs can suit your needs.