NBFC FD interest rates: Grow your savings with the highest FD rates

Explore the latest NBFC FD interest rates and make an informed decision. Compare rates, benefits, and choose the best option for your investments.

3 mins
25 July 2023

A fixed deposit (FD) is one of the safest and most preferred investment avenues for individuals looking to grow their savings and generate wealth. This instrument is popular given its low-risk characteristic. Banks and post office FD are backed by the government hence they operate at practically no risk, this is why these have traditionally been the go-to option for FD. However, they offer lower interest rates compared to NBFC FD rates.

What is NBFC FD?

NBFC FD stands for Non-Banking Financial Company Fixed Deposit. It is a type of investment that you can make with a Non-Banking Financial Company (NBFC). NBFCs are financial institutions that are not banks. They offer a variety of financial products, including fixed deposits.

NBFC FDs offer a fixed interest rate for a fixed period of time. The interest rate is usually higher than what you would get from a bank fixed deposit. This is why Non-Banking Financial Companies (NBFCs) have emerged as strong candidates in recent years. Out of a plethora of choices, Bajaj Finance stands out tall because it offers ultimate security of deposit as well as the highest NBFC FD interest rate making it a popular choice.

Read on to know more about what affects the NBFC fixed deposit interest rates and how they are calculated along with the latest FD rates in the market.

How are the NBFC FD interest rates calculated?

The NBFC FD interest rates are dependent on various factors including:

  • Financial climate and market movements
  • Chosen tenure
  • RBI policies and repo rate
  • CRISIL ICRA credit ratings
  • Investor profile
  • FD type

The FD rates are calculated keeping these variables in mind. You can use the online FD calculator on the Bajaj Finance website to estimate your returns at maturity by computing your tenure, deposit amount and applicable interest rates.

Grow your wealth with the highest NBFC FD interest rates

If you aim to grow your savings and create a wealth pool that you can utilise for personal expenses, or even use as an emergency fund then an NBFC FD is the perfect fit. Choosing an NBFC like Bajaj Finance FD, which offers competitive interest rates on fixed deposits is an ideal choice.

FD rates for customers below 60 years

Fixed Deposit Annualized rate of interest for non-senior citizens valid for deposit up to Rs. 5 crore (w.e.f 10 May, 2023)
*special interest rates are offered on tenure of 15, 18, 22, 33, and 44 months.

Non-Senior Citizen – Special Period
Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
15* 7.45% 7.21% 7.25% 7.32% 7.45%
18* 7.40% 7.16% 7.20% 7.27% 7.40%
22* 7.50% 7.25% 7.30% 7.36% 7.50%
30* 7.45% 7.21% 7.25% 7.32% 7.45%
33* 7.75% 7.49% 7.53% 7.61% 7.75%
44* 8.35% 8.05% 8.10% 8.18% 8.35%

Non-Senior Citizen – Regular Period

Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
12 - 14 7.40% 7.16% 7.20% 7.27% 7.40%
>15-23 7.50% 7.25% 7.30% 7.36% 7.50%
24 7.55% 7.30% 7.35% 7.41% 7.55%
25-35 7.35% 7.11% 7.16% 7.22% 7.35%
36 - 60 8.05% 7.77% 7.82% 7.89% 8.05%

FD rates for customers above 60 years

Fixed Deposit Annualized rate of interest for senior citizens valid for deposit up to Rs. 5 crore (w.e.f 10 May, 2023)
*special interest rates are offered on tenure of 15, 18, 22, 30, 33, and 44 months.

Senior Citizen – Special Period
Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
15* 7.70% 7.44% 7.49% 7.56% 7.70%
18* 7.65% 7.39% 7.44% 7.51% 7.65%
22* 7.75% 7.49% 7.53% 7.61% 7.75%
30* 7.70% 7.44% 7.49% 7.56% 7.70%
33* 8.00% 7.72% 7.77% 7.85% 8.00%
44* 8.60% 8.28% 8.34% 8.42% 8.60%

Senior Citizen – Regular Period

Tenure in
months
At maturity (p.a.) Monthly (p.a.) Quarterly (p.a.) Half yearly (p.a.) Annual (p.a.)
12 - 14 7.65% 7.39% 7.44% 7.51% 7.65%
>15-23 7.75% 7.49% 7.53% 7.61% 7.75%
24 7.80% 7.53% 7.58% 7.65% 7.80%
25 - 35 7.60% 7.35% 7.39% 7.46% 7.60%
36 - 60 8.30% 8.00% 8.05% 8.13% 8.30%

Factors affecting NBFC FD interest rates

Multiple factors influence the interest rates offered by NBFCs on fixed deposits. Here are some of the key influencing factors:

  • Market movements

The ongoing economic climate, repo rates, and inflation rates play a pivotal role in determining interest rates. FD providers NBFCs monitor these closely to align their rates accordingly.

  • Safety and credit ratings

NBFCs with higher credit ratings usually offer better interest rates. CRISIL and ICRA are the topmost credit rating agencies in India. A higher credit rating indicates the company’s financial stability and reliability.

  • Tenure, investor type, FD type

Each NBFC has its own set of rules to determine interest rates. Generally longer tenures attract higher FD rates, Senior citizens are given extra rate benefits and lastly, the cumulative FD type that offers returns at maturity instead of periodic payouts earns you more returns because of the power of compounding.

Armed with this information, you can now make an informed decision before parking your money in an NBFC FD. It is a smart option for investors that wish to maximise their savings safely.

Benefits and risks of NBFC FD

If you are considering investing in an NBFC FD, it is important to do your research and choose a company that is well established and has a good track record. You should also make sure that you understand the risks involved before you invest.
Here are some of the benefits of investing in an NBFC FD:

  • Higher interest rates: NBFCs typically offer higher interest rates than banks.
  • Flexibility: You can choose the tenure of your investment, from a few months to a few years.
  • Convenience: You can open an NBFC FD online or at a branch.

Here are some of the risks of investing in an NBFC FD:

  • Higher risk: NBFCs are not as regulated as banks, so there is a higher risk of default.
  • Tax implications: NBFC FDs are not tax saving, and you may have to pay taxes on the interest you earn from your NBFC FD.

Overall, NBFC FDs can be a good investment option for those who are looking for higher interest rates and flexibility. However, it is important to understand the risks involved before you invest.

Frequently asked questions

Can I get monthly interest on an NBFC fixed deposit?

Yes, by choosing the non-cumulative FD option, you can choose your payout frequency from monthly, quarterly, or annual payouts. This enables investors to enjoy a regular income stream from their investments.

Does an NBFC offer higher interest rate than normal banks?

Yes, NBFCs usually offer higher interest rates on fixed deposits compared to traditional banks and post offices.

How much tax is deducted from NBFC FD interest income?

The tax deductions on NBFC FD interest income are subject to the investor's tax slab and the prevailing tax regulations. The TDS rate is deducted at 10%.

What is the maximum NBFC FD interest rate?

Bajaj Finance is one NBFC FD that offers the highest FD rates up to 8.60% p.a. to their investors.

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Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.