NBFC Fixed Deposit - How to Choose the best NBFC FD

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A fixed deposit (FD) is a secure financial instrument in which you can invest a lump sum amount. This facility is offered by banks and Non-Banking Financial Companies (NBFCs) for a fixed tenor.

Over this period, you earn returns on your deposit at a fixed interest rate. An NBFC fixed deposit is also known as a corporate fixed deposit, since it is essentially offered by a company or corporate entity.

Many investors consider NBFC fixed deposits as their preferred mode of investment. If you are an investor with a low tolerance for risk, you can invest in a fixed deposit plan offered by an NBFC to earn guaranteed returns on your investment.

On the other hand, if you have a high tolerance for risk, you can still benefit from NBFC FDs because they make your portfolio more stable. The rates of interest on FDs offered by NBFCs are relatively higher overall than those offered on bank FDs.

That said, NBFC FD rates vary from one company to another. NBFC FD interest rates also remain unaffected by market changes, so you can expect guaranteed returns. You can choose to receive your interest monthly, quarterly, half-yearly, or annually.

Or, you can even choose to reinvest the interest in the fixed deposit and get it at maturity.

List of NBFC Fixed Deposits

If you are interested in investing in fixed deposits offered by Non-Banking Financial Companies, check out some of the top NBFC FDs you can choose from.

1. PNB Housing Finance

PNB Housing Finance is a registered housing finance company promoted by the Punjab National Bank. The bank offers an attractive fixed deposit plan that is rated FAA+/Negative rating by CRISIL and AA/Stable by CARE. Check out the interest rates on the bank’s various FD plans below.

Plan	Interest Rates (per annum)
	1-year FD	2-year FD	3-year FD	4-year FD	5-year FD
Cumulative fixed deposit (up to ₹5 Crore)	7.35%	7.00%	7.70%	7.40%	7.50%
Non-cumulative fixed deposit with annual payout option (up to ₹5 Crore)	7.35%	7.00%	7.70%	7.40%	7.50%

The NBFC FD rates on PNB Housing Finance fixed deposits are higher by 0.25% per annum for senior citizens for investments of up to ₹1 Crore.

2. Mahindra Finance

Mahindra Finance is a trusted vehicle financing company that has also emerged as a reliable investment provider in recent years. The company’s fixed deposit plans carry the IND AAA or stable rating, as offered by India Ratings. The NBFC interest rates across FD types are as follows.

Plan	Interest Rates (per annum)
	1-year FD	2-year FD	3-year FD	4-year FD	5-year FD
Samruddhi cumulative (up to ₹1 Crore)	7.05%	7.50%	7.50%	7.50%	7.50%
Samruddhi non-cumulative with an annual payout option (up to ₹1 Crore)	7.05%	7.50%	7.50%	7.50%	7.50%

Senior citizens get NBFC interest rates that are higher by 0.25% per annum on all the above deposits.

3. Bajaj Finance

India’s most diversified NBFC, Bajaj Finance also offers fixed deposits that are trusted by investors across the country. Fixed deposits from this NBFC have been awarded a safety rating of AAA or Stable by CRISIL, so you can rest assured that your investments will be safe. Check out the NBFC FD rates below.

Plan	Interest rates (per annum)
	1-year FD	2-year FD	3-year FD	4-year FD	5-year FD
Cumulative fixed deposit (upto ₹5 Crore)	7.40%	7.55%	8.05%	8.05%	8.05%
Non-cumulative fixed deposit (upto ₹5 Crore)	7.16%	7.25%	7.77%	7.77%	7.77%

The NBFC FD rates on these fixed deposits offered by Bajaj Finance are higher by 0.25% per annum for senior citizens.

Features and Benefits of NBFC Fixed Deposits

Guaranteed Returns

NBFC fixed deposits offer guaranteed or assured returns on your investment. This simply means that neither your capital nor the interest earnings are affected by market volatility. Here, you can rest assured of maximising your corpus without any stress.

Regular Income Options

You can opt for a non-cumulative type when you invest in fixed deposits. This ensures you receive your interest income regularly in the form of monthly, quarterly, half-yearly and annual payouts. You may choose any option according to your requirements.

Loan against FD facility

During financial emergencies, you can avail a loan against FD. When opting for a loan against NBFC fixed deposit, you can get up to 90% of the total FD value. Taking a loan against FD is affordable as you only need to pay nominal interest rates.

Simple and quick FD renewal process

Renewing an FD is easy, and you can do it from the comfort of your home. Simply visit the NBFC website and log in with your credentials. Then, renew your FD according to your choice and continue enjoying the benefits of assured returns.

Flexible Investment tenors

You can choose from a wide range of investment tenors when investing in a fixed deposit with an NBFC. The tenor options generally range from 12 months to 60 months.

Better Returns than Bank FDs

NBFC FD rates are typically higher than the rate of returns offered on bank fixed deposits. With attractive NBFC fixed deposit interest rates, you can accumulate funds over a period.

Higher NBFC FD Rates for Senior Citizens

NBFC fixed deposits, like all FDs, offer higher NBFC FD interest rates for senior citizens. Typically, the rate is higher by around 0.25% for seniors.

How are NBFC FDs Different from Bank FDs?

While fixed deposits offered by NBFCs are fundamentally similar to bank FDs in most ways, there are a few points of differences between these two categories of instruments. Let’s take a closer look at how NBFC fixed deposits differ from bank fixed deposits.

Particulars	Bank Fixed Deposit	NBFC Fixed Deposit
Rate of Interest	Bank fixed deposits generally offer lower rates of interest.	NBFC fixed deposits offer higher rates of interest than bank FDs.
Investment tenor	The investment tenor for bank FDs can range from 7 days to 10 years.	NBFC FDs generally come with tenor options ranging from 1 year to 5 years.
Insurance on the FD	Bank fixed deposits are insured up to ₹5 Lakhs per account as per the RBI’s regulations.	NBFC fixed deposits do not come with any such insurance coverage.
Safety	Bank FDs are generally considered safer than NBFC fixed deposits.	Fixed deposits by NBFCs come with varying degrees of risks as indicated by their credit rating.
Tax Benefits	Interest on bank FDs held by senior citizens is eligible for tax deductions u/s 80TTB up to ₹50,000 per financial year.	Interest on NBFC fixed deposits does not come with any such tax benefit.

How to Choose the Best NBFC for Fixed Deposit?

If you are planning to open an NBFC fixed deposit, here are some things to consider before you do so.

Always compare the NBFC FD rates offered by different Non-Banking Financial Companies to identify the instrument that offers better returns
Always review the lender's credibility to ensure your fixed deposit is safe
Always choose deposits that carry AAA ratings, depending on the agency that rated them
Before opening an FD, ensure the NBFC you choose offers a hassle-free application process and provides good customer service
Choose the FD tenor wisely to avoid penalty charges for premature withdrawal
If you have a surplus amount to invest, you can split it into multiple FDs with different tenors and earn interest for every deposit

Conclusion

An NBFC fixed deposit is a safe saving option to invest in if you want to earn assured interest from an investment. So, now that you are clear about the question, “can an NBFC accept fixed deposits?”, consider investing in one and adding to your portfolio.

Different fixed deposits are available in the market. You can choose one of the best NBFCs for fixed deposit plans by comparing your options. It is important to know the returns that you will receive when you invest in a FD. You can use the online FD interest rates calculator to determine the same.

Also, always ensure that you choose fixed deposit plans rated as highly creditworthy by the credit agencies like ICRA, CRISIL and CARE to keep your capital secure. You can invest for a tenor from 12 to 60 months and enjoy the benefits of attractive interest rates offered by NBFCs.

If you are a senior citizen, you also get to earn additional interest, thanks to nominally higher NBFC FD rates for deposits held by people over the age of 60 years. Additionally, you can check out the details of a few leading NBFCs offering fixed deposits on Bajaj Markets.

Other FD Related Pages
Fixed Deposit	FD Interest Rates	FD Calculator
Bajaj Finance FD Rates	PNB Housing Finance FD Rates	Mahindra Finance FD Rates
Bajaj Finance FD Calculator	PNB Housing Finance FD Calculator	Mahindra Finance FD Calculator
Corporate FD	Flexi Fixed Deposit	NRI FD
Senior Citizen Fixed Deposit	TDS on FD Interest	Premature Withdrawal of FD
OD against FD	Loan against FD	Short Term FD
Benefits of FD	FD Receipt	Long Term FD
Types of Fixed Deposit	TDS on FD for Senior Citizens	Floating Rates FD

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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Monthly Interest on FD

FAQs about NBFC Interest Rates

Yes, you can book a fixed deposit in an NBFC, just like a bank fixed deposit.

The NBFC FD rates differ from one company to another and can change from time to time. The interest rates are dependent on the FD amount, the investment tenor and the prevailing repo rates. Senior citizens are offered comparatively higher NBFC interest rates on deposits.

The FD interest rates vary from time to time based on changes to the current repo rate and the NBFC’s internal policy and regulations. So, when deciding which NBFC gives the best returns on FDs, different NBFCs may hold the top spot at different points in time. You can check out the NBFC offering the highest FD rates by comparing your options online.

NBFCs decide the interest rate based on factors like their internal policies, profitability, repo rates, etc. That said, NBFC FD rates cannot exceed the ceiling rate set by the Reserve Bank of India.

The rate of interest on NBFC fixed deposits varies from company to company. They also change based on the tenor and the amount of the deposit made.

Yes, the interest you earn from your NBFC fixed deposit is taxable as income from other sources.

Yes, compared to various other market-linked investment options, investing in NBFC fixed deposits provides safe and reliable returns. However, the reliability of the issuer depends on its credit rating. Hence, check out the credibility factor of the NBFC before booking an FD.

The NBFC FD rates vary depending on the RBI regulations and internal policies. As such, the best NBFC for FDs are usually those with both high credit ratings and rates. Ideally, compare the interest rates across different NBFCs along with the credit ratings before choosing a specific issuer.