5 NBFCs Offering High Interest Rates on Fixed Deposits

Fixed Deposits (FDs) are a preferred savings tool for many investors in India due to their guaranteed returns and safety. While banks have traditionally been the go-to institutions for FDs, Non-Banking Financial Companies (NBFCs) are increasingly offering competitive interest rates that attract investors. In this article, we will explore five NBFCs that offer high interest rates on FDs, helping you make an informed decision about where to invest your money. 

FD Interest Rates Offered by NBFCs

Here is a comparison of the highest FD interest rates offered by these NBFCs:

Disclaimer: Interest rates are applicable on domestic term deposits under ₹2 Crores for senior citizens as of 17th May 2024. Rates are subject to change as per the bank/NBFC’s discretion and policies. Please refer to the official website for more details. 

1. Bajaj Finance

Bajaj Finance is a prominent NBFC in India, known for its diverse range of financial products and services. It offers attractive interest rates on Fixed Deposits, making it a popular 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 is typically around 8.60% p.a.

Key Features:

• Tenor Range: Bajaj Finance provides flexible tenors ranging from 12 to 60 months
• Safety Rating: Bajaj Finance FDs have high safety ratings, such as AAA/Stable by CRISIL, indicating high credit quality and low credit risk
• Easy Online Application: You can easily apply for a Bajaj Finance FD online via platforms like www.bajajfinservmarkets.in

2.Shriram Finance

Shriram Finance is a notable NBFC offering a range of financial products, including high-interest FDs. It is known for its focus on providing financial services to the underserved segment.

Shriram Transport Finance offers an interest rate 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: The FD tenor can range from 12 months to 60 months
• Safety Rating: The company has high safety ratings such as AA+/Stable by ICRA
• Periodic Interest Payout: It features options available for monthly, quarterly, and annual interest payouts

3. LIC Housing Finance

LIC Housing Finance, a subsidiary of Life Insurance Corporation of India, offers competitive interest rates on Fixed Deposits, making it a reliable choice for conservative investors.

LIC Housing Finance 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 to suit different investment horizons
• Safety Rating: Individuals can benefit from a high safety rating of AAA/Stable by CRISIL
• Easy Application: The NBFC offers both online and offline application processes to depositors.

4. Mahindra Finance

Mahindra Finance, part of the Mahindra Group, offers attractive FD rates that make it a popular choice among investors looking for reliable and high-return investment options.

Mahindra Finance 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: You can receive Interest either on a monthly, quarterly, half-yearly, or annual basis
• Safety Rating: Mahindra Finance has a high safety rating of AAA/Stable by CRISIL
• Easy Application Process: The simplified application process is available both online and offline

5. PNB Housing Finance

PNB Housing Finance is a well-established NBFC offering competitive interest rates on Fixed Deposits. It is a subsidiary of Punjab National Bank, which adds to its credibility and trustworthiness.

PNB Housing Finance offers an interest rate of up to 8.05% p.a. for senior citizens and up to 7.85% p.a. for non-senior citizens.

Key Features:

• Tenor Range: Tenors range from 12 months to 120 months, offering flexibility
• Safety Rating: PNB Housing Finance FDs have a high safety rating of AA+/Stable by CRISIL
• Online and Offline Application: Choose from flexible application methods to suit your convenience

How to Choose the Right NBFC for FD

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

1. Credit Rating: Ensure the NBFC has a high credit rating, indicating financial stability and reliability
2. Tenor Flexibility: Look for NBFCs that offer a range of tenors to match your financial goals, whether short-term or long-term
3. Interest Payout Options: Consider whether you need regular interest payouts or prefer cumulative interest, with payouts at maturity
4. Premature Withdrawal Policies: Understand the penalties and conditions for premature withdrawal if you need liquidity before the FD matures
5. Customer Service: Good customer service can make a significant difference in your overall experience, from application to maturity and beyond

Non-Banking Financial Companies (NBFCs) have become increasingly attractive for Fixed Deposit investments due to their high interest rates and reliable service. Bajaj Finance, Shriram Finance, LIC Housing Mahindra Finance, and PNB Housing Finance are known for their competitive rates and investor-friendly features.By investing in FDs with these NBFCs, you can potentially earn higher returns compared to traditional banks. To make the most of your investment, visit marketplaces like Bajaj Markets to compare FD options, check the latest NBFC FD rates, and apply online with ease. Whether you are a conservative investor seeking stability or looking to maximise returns, these NBFCs offer robust options to suit your needs.