Business Wire India
For those with a low risk appetite, the bank FD is usually looked on to be an ideal instrument. However, with the RBI bringing down the repo rate by 175 basis points in less than a year, FD interest rates with banks have dropped significantly. Comparatively, NBFC FD rates are better.

The Bajaj Finance Limited, offers Fixed Deposits with rates of up to 6.85%, giving customers a way to grow their wealth securely. Moreover, NBFCs like Bajaj Finance offer a range of investment features and have digital provisions in place that promise a superior investment experience. So, investors looking to enhance their portfolio with an FD may opt for an NBFC FD for better returns and more convenient investing.

Here are reasons why NBFC FDs are preferred over bank FDs by investors today.

Superior fixed deposit rates

In November 2020 itself, leading banks in India slashed their FD interest rates. In comparison, Bajaj Finance offers higher FD interest rates, and customers can use the FD interest calculator to forecast their returns with this instrument.

Consider how an investment of Rs.10 lakh grows with Bajaj Finance over a 5-year period.
Investor Interest rate Interest earned Maturity amount
Non-senior citizen (investing offline) 6.60% Rs.3,76,531 Rs.13,76,531
Non-senior citizen (investing online) 6.70% Rs.3,83,000 Rs.13,83,000
Senior citizen 6.85% Rs.3,92,748 Rs.13,92,748
Results generated with the FD Calculator.

It is key to note that customers can gain an additional 0.10% on the FD if they book it online. Moreover, these figures are for FDs with payouts at maturity. On the FD calculator monthly interest values are also given for those who desire frequent payouts. These attract a lower interest rate, which would still be better than those offered at banks.

High safety and assured returns

Bank deposits are known to be secure and depositors are insured of up to Rs. 5 lakh for both principal and interest amount held with the bank. However, with the recent repo cut investors are not getting the benefit of high returns on their investments. In comparison, NBFC FDs offers higher yields on investments and what’s more, with Bajaj Finance, investors benefit from an AAA-rated instrument that guarantees returns.
The Bajaj Finance FD carries the ICRA MAAA and CRISIL FAAA ratings. These point to assured and timely returns, with no defaults. The Bajaj Finance FD also has a book size of over Rs. 22,000 crores and it recently reported growth of 22.5%. These figures are indicative of its popularity in the market.

In addition, the company also promises guaranteed returns and has top credit ratings backing its FD programme. This make it a top choice for smart investors who are adding this stable NBFC FD to their portfolio in contrast to bank FDs that offer low interest returns.

Range of convenience facilities

For easier investing, NBFCs extend a range of provisions to their customers.  A prime example is the Systematic Deposit Plan (SDP) offered by Bajaj Finance Limited. By investing in this plan, young earners can grow their wealth as they save monthly. Here, the investors need to make contributions of just Rs. 5,000 or more every month.  Each contribution goes towards a new deposit.

Customers can pick either the:
  • Monthly maturity scheme:  By selecting this, investors can invest via 6 to 48 deposits, each maturing after a fixed, common tenor. Here, payouts occur every month after the first deposit matures.
  • Single maturity scheme: To get payouts on a single day. Here, the tenure of each deposit is adjusted to mature on the particular date.
Bajaj Finance also offers:
  • The Auto-renewal facility: To help investors invest for longer without manual intervention
  • The Multi-deposit facility: That allows investors to open several FDs with a single cheque
  • A loan against FD provision: So that investors can continue to earn interest and yet gain liquidity
For assured gains and a host of value-added features, investors can opt for an NBFC FD and in fact, book a Bajaj Finance online FD from the comfort of their home today.


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