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)