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:
1. 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.
2. 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.
3. 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.
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.
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.
Conclusion
NBFC Fixed Deposits offer a compelling alternative to traditional bank FDs, often providing higher interest rates along with flexible tenures and payout options. While they may carry slightly higher risk, choosing a reputed and highly rated NBFC can ensure both safety and returns. Always compare interest rates, check credit ratings, and align the FD terms with your financial goals before investing. With the right NBFC, you can grow your savings steadily and securely.
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