Nowadays the rate of interest is on a rising spree. Due to RBI policy and lack of liquidity in the money market, the FD interest rates have touched above 9%. However, no banks still offer FD interest rate above 9%. You can earn better interest rates on your fixed deposit when you park your money with NBFCs (Non-Banking Finance Companies) as compared to banks. However, you should exercise caution by selecting the NBFCs with AAA rating from independent credit rating agencies like ICRA and CRISIL.
Bajaj Finance Fixed Deposit
Every fixed deposit of Bajaj Finance is rated as MAAA by ICRA and FAAA by CRISIL. These both ratings indicate the highest level of safety of the principal, very high possibility of principal repayment and timely interest payment. For five year fixed deposit, you can earn 8.75% interest rate. You can earn an additional 0.35% interest if you are a senior citizen. Existing customers are eligible for an additional interest rate of 0.25% over regular interest rate. Hence, you can earn up to 9% Interest Rate on fixed deposit if you renew the fixed deposit of Bajaj Finance. You can book this FD online or on regular mode. You can book FD with a nominal amount as low as Rs.25000. The choice of tenure varies from 12 months to 60 months, offering an interest rate range from 8% to 8.75% for regular FDs. There is also one special tenure FD for 15 months duration offering 8.05% interest rate.
Mahindra Finance Fixed Deposit
Mahindra finance offers an interest rate in a range of 8.3% to 9%, based on tenure selected and type of FD. You can choose the tenure from 15 months to 40 months. Senior citizens can get an additional 0.1% interest rate above the regular interest rate. The interest rate for physical fixed deposit is slightly lower as compared to online fixed deposit.
Sri Ram Transport Fixed Deposit
You can book FD with Sri Ram transport for a duration of 12 months to 60 months and earn an interest rate in a range of 8.25% to 9.25% respectively. The company has received FAAA rating from CRISIL and MAA+ rating from ICRA indicating higher credit quality of the fixed deposit. You can choose a cumulative or noncumulative mode of fixed deposit based on your requirement. For better growth of your portfolio, it is recommended to book the fixed deposit with the cumulative option.The deposit comes with a lock-in period of three months, during which you cannot withdraw the money. If you break this FD in a duration of three to six months, you shall not be paid any interest. For premature withdrawal above six months, penal interest in a range of 2 to 3 percent is applicable.
DHFL fixed the deposit interest rate
DHFL offers interest rate in a range of 8.25% to 9% for the fixed deposit with a duration of one year to ten years. If you renew the existing FD with DHFL, an additional interest rate of 0.15% is payable over regular interest rate. The company has introduced privilege category customers, that includes senior citizen, widow, defense personals and DHFL loan customers. The customer in the privilege category can get an additional interest rate of 0.4% above the regular interest rate. There is also special FD for women offering 8.30% interest rate for 18 months’ duration.
How to select NBFC for your fixed deposit? Like any other investment, safety is the prime criteria while you invest in fixed deposit. First and foremost, filter out any option that offers the rating anything lower than FAAA by CRISIL Rating and MAAA by ICRA. Once you are satisfied with the rating, the second criterion is to check repayment history. Never settle with the good rating but no track record or adverse repayment history. Once you are confident about credit quality and repayment practices of NBFC, consider ease of investing. Many NBFCs offer internet FD with minimum paperwork and efforts from your side. If you have an existing relationship with NBFC, you can get additional interest rate with the minimum procedure, as KYC details are already available with them.