The Indian financial market is witnessing a surge in the demand for investments offering good returns. With high inflation rates and an unstable share market, the demand for fixed deposit (FD) investments has increased significantly. An FD investment is considered to be a more secure option than some other investment tools and is preferred by risk-averse investors.
The Reserve Bank of India (RBI) regulates FD rates in India. However, Non-Banking Financial Companies (NBFCs) are also offering FDs that are competing with banks on interest rates. In the article, we will discuss the top 5 NBFCs that are offering competitive FD interest rates in India in 2024.
1. Bajaj Finance Limited
Bajaj Finance Limited, the lending arm of Bajaj Finserv Limited, is one of the most popular NBFCs in India that offers a wide range of financial products. The company has more than 250 branches across the country and provides an attractive interest rate on fixed deposits. Currently, the company is offering an interest rate of 6.50% per annum for FD rates with a tenure of 36 months. Moreover, senior citizens get an additional interest rate of 0.25%.
2. Mahindra Finance
Mahindra Finance is another popular NBFC in India, which is known for providing a wide range of financial services, including fixed deposits. The company offers attractive and competitive interest rates on FDs based on the tenure of the deposit. Currently, the company is offering an interest rate of 6.25% per annum on FDs with a tenure of 24 to 50 months. Moreover, senior citizens get an additional interest rate of 0.25%.
3. HDFC Limited
HDFC Limited, one of the well-known financial institutions in India, offers a wide range of financial products, including fixed deposits. The company has a strong presence in the rural and urban areas of the country and provides an attractive interest rate on FDs. Currently, the company is offering an interest rate of 6.40% per annum for FDs with a tenure of 33 to 60 months. Moreover, senior citizens get an additional interest rate of 0.25%.
4. LIC Housing Finance
LIC Housing Finance is a subsidiary of the Life Insurance Corporation of India that provides a wide range of financial services, including fixed deposits. The company offers attractive interest rates on FDs, which are higher than the prevailing market rate. Currently, the company is offering an interest rate of 6.50% per annum for FDs with a tenure of 24 to 60 months. Moreover, senior citizens get an additional interest rate of 0.30%.
5. Shriram City Union Finance
Shriram City Union Finance is one of the leading NBFCs in India that offers a wide range of financial products, including fixed deposits. The company has a strong presence in the rural and urban areas of the country and provides an attractive interest rate on FDs. Currently, the company is offering an interest rate of 6.50% per annum for FDs with a tenure of 48 months. Moreover, senior citizens get an additional interest rate of 0.25%.
Conclusion:
The above-mentioned NBFCs are offering attractive interest rates on fixed deposits that are competing with banks in India. Investors should choose a company that offers a high interest rate on FDs and has a good reputation in the market.
However, every investment has its own set of pros and cons, and an investor must gauge their pros and cons before investing in any financial product. While investing, it is always advisable to read the terms and conditions carefully as the interest rate is subject to market fluctuations.
Summary:
Non-Banking Financial Companies (NBFCs) are offering fixed deposit (FD) investments that are competing with banks on interest rates. Fixed deposit investment is considered to be more secure than other investment tools and is preferred by risk-averse investors in India.
Bajaj Finance Limited, Mahindra Finance, HDFC Limited, LIC Housing Finance, and Shriram City Union Finance are the top 5 NBFCs that are offering competitive FD interest rates in 2024. Before investing, investors must gauge the pros and cons of investing in the Indian financial market and read the terms and conditions carefully.
fixed deposit calculator is a financial tool used to estimate the potential returns on fixed deposit investments. It typically requires inputs such as the deposit amount, tenure, and applicable interest rate.
