Home >Brand Post >Reasons to grow your savings with NBFC fixed deposit

Investors looking to grow their savings with the right balance of risk and returns can consider investing in a fixed deposit. FDs offer guaranteed returns on investments, and are popular among all kinds of investors, regardless of risk type. When choosing the right FD to grow savings, it is common practice to invest in FDs offering even a slightly higher interest rate. And when it comes to interest rates, deposits offered by NBFCs offer higher interest rates than banks or post offices.

Recently, the repo rate cuts announced by RBI pushed banks to reduce their FD interest rates too. And now, interest rates on FDs offered by banks are fetching lower returns than savings accounts. In such a scenario, FD investors must play it smart by balancing risk and returns.

How to balance risk and returns?

Since returns on your investment contribute towards wealth creation, even slightly higher FD rates make a significant difference over time. However, when fishing for higher interest rates, safety tends to take a backseat, giving rise to defaults and delays in repayments.

Hence, it is best to invest in a Fixed Deposit with the highest safety ratings from renowned credit rating agencies. Additionally, look up the background of the company you plan to invest in, fine-tooth combing for any news of bad company performance that may potentially result in defaults.

Bajaj Finance FD is one such example that is accredited with the highest safety ratings of FAAA by CRISIL and MAAA by ICRA. It is one of the only NBFCs to have ‘0 unclaimed deposits’, which indicates the lengths to which the company goes to repay the depositors.

Additionally, for those looking to plan their investments beforehand, Bajaj Finance has an online FD interest calculator to help you know your maturity amount and interest payouts, before you invest. Thus, investing in a stable NBFC FD like Bajaj Finance can be quite profitable in the present scenario.

Here’s a look at some of the benefits of investing in NBFC FDs.

Attractive returns

Those looking for wealth creation can choose an NBFC FD to grow their savings, as the interest rates offered are usually higher by 1-2%. With recent repo rate cuts and higher liquidity in the economy, several banks have reduced their FD interest rates, which average around 5-6%. However, you can still get interest rates of up to 7.85% with Bajaj Finance FD, which is one of the best NBFCs for investing.

To understand how these interest rates help in saving more, let’s assume you’ve invested Rs. 30,00,000 in a Bajaj Finance FD for five years. Depending on your customer category, here’s a look at the returns you can get:

With Bajaj Finance, you can grow your deposit by more than 40% in just 5 years.
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With Bajaj Finance, you can grow your deposit by more than 40% in just 5 years.


From the above table, you can see how a deposit with Bajaj Finance can grow by more than 40% in just 5 years. Senior citizens can reap additional benefits with 0.25% higher interest rates that can help them secure their retirement easily.

Customised investment offerings

When investing in a NBFC fixed deposit, you can look to customise your investment as per your needs. You can choose flexible tenures from 12 to 60 months, and select the frequency of periodic payouts as per your liquidity requirements.

Additionally, NBFCs like Bajaj Finance offer the facility of Bajaj Finance online FD for existing customers, who can invest from the comfort of their homes. Even new customers can consider applying online, and opt for doorstep document collection facilities.

Create a contingency fund

During these times of uncertainties, it is best to invest a portion of your savings in NBFC FD, and use it as a contingency fund. Investing in NBFC FD can help you create an emergency fund, as you have the option of either withdrawing prematurely, on completion of lock-in period or you can also avail a Loan against FD. Thus, investing in NBFC FD can help you evade uncertainties, and ensure that you have a contingency fund ready, in case of emergencies.

With the convenience of digital solutions and ease of investing, NBFC FDs offer a lot more than just attractive interest rates or premature withdrawal option. You can opt for other facilities like monthly savings option with Systematic Deposit Plan, or choose multi-deposit facility to ladder your FDs easily. Additionally, you can choose to auto-renew your deposit and gain additional rate benefits on renewing your deposit. Make a smart choice with a Bajaj Finance fixed deposit and watch your savings grow.

Disclaimer: This content is distributed by Bajaj Finserv. No HT Group journalist is involved in the creation of this content.

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