FD rates for customers below the age of 60
Fixed Deposit annualised rate of interest for customers below the age of 60 is valid for deposit amounts from Rs. 15,000 to Rs. 3 crore (w.e.f 11 June, 2025).
Non-Senior Citizens
| Tenure in |
months At maturity (p.a.) |
Monthly (p.a.) |
Quarterly (p.a.) |
Half yearly (p.a.) |
Annual (p.a.)
|
|
|---|---|---|---|---|---|
| 12 - 14 | 6.60% | 6.41% | 6.44% | 6.49% | 6.60% |
| 15 - 23 | 6.75% | 6.55% | 6.59% | 6.64% | 6.75% |
| 24 – 60 | 6.95% | 6.74% | 6.78% | 6.83% | 6.95% |
FD rates for customer above the age of 60
Fixed Deposit annualised rate of interest for senior citizens is valid for deposit amounts from Rs. 15,000 to Rs. 3 crore (w.e.f 11 June, 2025).
Senior Citizens
| Tenure in |
months At maturity (p.a.) |
Monthly (p.a.) |
Quarterly (p.a.) |
Half yearly (p.a.) |
Annual (p.a.)
|
|
|---|---|---|---|---|---|
| 12 - 14 | 6.95% | 6.74% | 6.78% | 6.83% | 6.95% |
| 15 - 23 | 7.10% | 6.88% | 6.92% | 6.98% | 7.10% |
| 24 - 60 | 7.30% | 7.07% | 7.11% | 7.17% | 7.30% |
Factors affecting NBFC FD interest rates
Market Movements: Repo rates, inflation, and RBI policies directly influence FD interest rates.
Safety and Credit Ratings: NBFCs with top CRISIL/ICRA ratings (like Bajaj Finance) assure safety and reliability.
Tenure & FD Type: Longer tenures, senior citizen deposits, and cumulative payout options often yield higher returns.
Senior citizens can enjoy an additional rate benefit of up to 0.35% p.a. on Bajaj Finance FDs, boosting retirement income. Check eligibility.
Fixed deposit variants
Documents Required to Open an NBFC FD
- Identity Proof: You must provide a valid government-issued identity document to verify your identity. Commonly accepted documents include PAN Card, Aadhaar Card, Passport, or Voter ID. These help NBFCs comply with KYC norms and ensure secure transactions.
- Address Proof: A valid address proof is required to confirm your residential details. Documents such as Aadhaar Card, Passport, or recent utility bills (electricity, water, or gas) are typically accepted. Ensure the document reflects your current address accurately.
- Bank Account Details: You need to submit your bank account information to link with the fixed deposit. This enables seamless interest payouts and ensures the maturity amount is credited directly to your account without delays or complications.
- Photographs and KYC Compliance: Some NBFCs may also request recent passport-sized photographs and completion of KYC formalities, either online or offline, to finalise the FD account opening process efficiently.
Eligibility Criteria for NBFC FD
- Eligible Applicants: NBFC fixed deposits are open to a wide range of investors, including resident individuals, Non-Resident Indians (NRIs), Hindu Undivided Families (HUFs), partnership firms, public and private companies, trusts, clubs, and societies. This flexibility makes NBFC FDs accessible for both individual and institutional investors.
- Age Requirement: Individuals must be at least 18 years old to open an FD independently. However, minors can also invest in fixed deposits through a guardian, typically a parent or legal guardian, who manages the account until the minor reaches adulthood.
- Compliance Requirements: Applicants must meet basic KYC norms and regulatory guidelines set by the NBFC, ensuring identity verification and financial transparency during the deposit opening process.
Benefits and risks of NBFC FD
Listed below are a few benefits and risks of NBFC FDs:
Benefits of NBFC FD
- Higher interest rates compared to traditional bank FDs
- Flexible tenures ranging from 12 to 60 months.
- Multiple payout options (monthly, quarterly, yearly, or at maturity).
- Easy online booking process within minutes.
Risks of NBFC FD
- NBFCs are regulated differently from banks, so risk can be slightly higher.
- Interest earned is taxable, and NBFC FDs are not tax-saving investments.
Bajaj Finance FD reduces risk concerns with AAA ratings from CRISIL and ICRA, making it one of the safest NBFC FDs in India. Invest and get up to 7.30% p.a. returns. Open FD.
How to Open an NBFC FD
- Visit Official Website: Start by visiting the official website of your chosen NBFC and navigate to the fixed deposit section.
- Select FD Option: Click on ‘Apply for FD’ to begin the application process and access the online form.
- Fill Application Form: Enter all required personal details, including name, age, PAN card number, and other KYC information accurately.
- Choose Investment Details: Select your preferred deposit tenure and investment amount after reviewing minimum deposit limits and available tenure options.
- Add Nominee Information: Provide nominee details carefully to ensure smooth fund transfer in case of unforeseen circumstances.
- Provide Contact Details: Enter your valid mobile number and email address for communication and updates.
- Make Payment: Transfer the deposit amount through available online payment options.
- Confirmation: Once verified, you will receive confirmation via SMS and email for successful FD account opening.
Taxation on NBFC Fixed Deposits
Interest earned on NBFC fixed deposits is fully taxable and added to your total income, which is then taxed as per your applicable income tax slab. If the annual interest exceeds Rs. 5,000, the NBFC deducts TDS. However, you can avoid TDS by submitting Form 15H (for senior citizens) or Form 15G if your total income is below the taxable limit.
Who Should Open an NBFC Fixed Deposits?
- Investors Seeking Higher Returns: NBFC fixed deposits generally offer higher interest rates than traditional bank FDs. Individuals willing to accept slightly higher risk for better returns may find them suitable.
- Moderate Risk Takers: Since NBFC FDs carry relatively more risk than bank deposits, they are ideal for investors comfortable with moderate risk while still prioritising capital safety.
- Portfolio Diversifiers: Those looking to diversify beyond conventional savings accounts and bank FDs can include NBFC FDs to balance and strengthen their overall investment portfolio.
- Short- to Medium-Term Planners: With tenures typically ranging from 1 to 5 years (and up to 10 years in some cases), these FDs suit individuals planning for short- or medium-term financial needs.
- Goal-Oriented Investors: Individuals saving for specific goals, such as education, home purchase, or retirement, can use NBFC FDs as a structured and predictable investment option.
Key factors to evaluate before investing in an NBFC Fixed Deposit
Interest Payout Option: NBFCs offer cumulative and non-cumulative FD options. Choose cumulative if you prefer lump sum returns at maturity, or non-cumulative for regular income through monthly, quarterly, half-yearly, or annual interest payouts.
Interest Rates Comparison: Carefully compare FD interest rates across different NBFCs. Do not rely only on high returns—review terms and conditions to ensure the offer is sustainable and suitable for your needs.
Safety and Credit Ratings: Since NBFC FDs carry some risk, always check credit ratings from reputed agencies like CRISIL or ICRA. Higher-rated NBFCs offer greater assurance of timely repayment and financial stability.
Tenure Flexibility: Evaluate the tenure options available and align them with your financial goals. Selecting the right duration helps maintain liquidity and avoids premature withdrawal penalties or financial inconvenience later.
Grow your wealth with the highest NBFC FD rates
If your goal is to build a secure corpus for future needs like education, marriage, or emergency funds, NBFC FDs are an excellent choice. With higher returns, flexible options, and strong safety measures, they are designed for modern investors.
Open a Bajaj Finance FD online today and grow your wealth with competitive rates of up to 7.30% p.a.—all from the comfort of your home.
Conclusion
NBFC Fixed Deposits are a strong alternative to traditional bank FDs, especially for those seeking higher returns without compromising safety. By choosing a reputed NBFC like Bajaj Finance, you not only benefit from better interest rates but also enjoy peace of mind with top credit ratings. Whether you are a young professional, a parent saving for education, or a retiree seeking steady income, Bajaj Finance FD is a reliable option to achieve your financial goals securely.
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Frequently asked questions
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.
Yes, NBFCs usually offer higher interest rates on fixed deposits compared to traditional banks and post offices.
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%.
Bajaj Finance is one NBFC FD that offers the highest FD rates up to 7.30% p.a. to their investors.
Unlike bank FDs, Bajaj Finance FD offers higher interest rates up to 7.30% p.a., flexible payout options, and extra benefits for senior citizens—all while maintaining the highest safety standards. Open an FD account with Bajaj Finance now!
Interest rates offered by NBFCs vary based on their credit rating, internal policies, and market conditions. Many NBFCs offer higher rates compared to traditional banks to attract long-term deposits. While rates differ across institutions, NBFCs generally provide interest rates in the range of 7% to 9% p.a., depending on the tenure and customer category. Bajaj Finance, for instance, offers fixed deposit interest rates of up to 7.30% p.a., which is among the competitive rates available in the NBFC space.
Fixed deposits in NBFCs can be a safe investment option when the NBFC has strong credit ratings and follows RBI’s regulatory guidelines. NBFC FDs do not come with deposit insurance, so safety depends largely on the company’s financial strength and rating. Choosing a well-rated NBFC with a consistent track record—such as Bajaj Finance, which holds high safety ratings—can offer stability along with predictable returns. However, because NBFCs are not insured by DICGC, they carry slightly higher risk than bank FDs, making it important for investors to review credit ratings before investing.
Yes, NBFCs can accept fixed deposits, but only if they hold the necessary approval from the Reserve Bank of India. NBFCs that are authorised to accept public deposits must maintain a minimum investment-grade credit rating and follow regulatory norms regarding deposit limits and tenures. These deposits typically range from 12 to 60 months and are governed by strict guidelines to protect depositors. Bajaj Finance, being a deposit-accepting NBFC, offers fixed deposits that comply with RBI regulations and provide secure, predictable returns.
NBFC FD rates currently peak at 7.30% p.a. for senior citizens and 6.95% p.a. for non-seniors on 24-60 months tenures. Rates are primarily driven by RBI policies and the NBFC's credit rating.
NBFC FDs are open to resident individuals, NRIs, HUFs, companies, trusts, and societies. Applicants must meet KYC norms. Individuals must be 18+ to apply independently, though minors can invest via a guardian.
