Interest rates

Top Nbfcs That Offer The Best Interest Rates On Fds

Fixed Deposits (FDs) are financial instruments that provide investors with a safe and risk-free method of accumulating wealth through compound interest. What many people don’t realize is that FDs are not only offered by banks, but also by businesses and non-bank financial companies (NBFCs).

Although NBFCs generally offer higher interest rates, their FDs are less liquid and customers should also note that NBFCs do not fall under the Rs 5 lakh guarantee provided by the Deposit Insurance and Credit Guarantee Corporation (DIGCC).

That said, here are the best NBFCs that offer the best interest rates on FD:

Shriram Transport Finance Co Ltd — 6.31% to 7.62% per year

Shriram City Union Finance Co Ltd — 6.31% to 7.62% per year

Muthoot Capital Services Limited — 6.25% to 7.25% per year

Kerala Transport Development Finance Corporation Ltd — 5.75% to 6% per year

PNB Housing Finance Ltd — 5.75% to 7% per year

Bajaj Finance Limited — 5.75% to 7% per year

HDFC Ltd — 5.65% to 6.70% per year

Sundaram Real Estate Finance — 5.50% to 6.05% per year

ICICI Home Finance — 5.25% to 6.8% per year

LIC Housing Finance Ltd — 5.60% to 6.60% per year

Additionally, some of these NBFCs also offer an additional interest rate bonus for renewing an FD at maturity. Seniors may also receive an additional interest rate of 0.25-0.50% on their DFs.

(Edited by : Shoma Bhattacharjee)