Published On: Wed, Dec 21st, 2016

Features of Fixed Deposit Through an NBFC

Fixed Deposit in India is a popular choice of investment that people across all ages and occupation opt for.
You can deposit a certain amount in an NBFC and receive an interest either monthly or annually, at a tenure period that is convenient to your financial situation. Investment in Fixed Deposit is a smart choice as it involves a low risk factor and assured high returns.

While you have the option of company-based deposits, NBFCs in our country seem to offer higher rates of interest and several other benefits. Company deposits are governed by the Companies Act under Section 58A.

features-of-fixed-deposit-through-an-nbfc

Features of Fixed Deposit

● Let’s take a quick look at some of the key benefits of you are entitled to when you apply for Fixed Deposit.
● Flexible tenure periods ranging between 12–60 months
● Fixed Deposit facilities offered across the country over 200 locations
● Additional 0.25% of interest rate for senior citizens for deposit of up to Rs. 1 crore
● No TDS on interest up to Rs. 5,000 per annum
● Choice between cumulative and non-cumulative Fixed Deposits
Loan against your Fixed Deposit as an alternative to early withdrawal in times of a cash crunch
● FD renewal customers and privileged employees are entitled to an additional 0.10% of interest per annum for deposits up t Rs. 1 crore
● Bulk deposits
● Basic needs for eligibility like Indian citizenship, Hindu Undivided Family, resident individuals, family trust, and sole proprietorship
● Personalised Fixed Deposit Calculator for your convenience
● For investments of a huge principal amount, the NBFC has unique regulations that you can discuss with one of their executives.

Interest Rates

When opting for a tenure period between 12 and 35 months, you can expect an interest of 8% on cumulative Fixed Deposits. The interest rate varies every quarter for non-cumulative Fixed Deposits. You can expect an interest rate of 7.72%, 7.77%, 7.85%, and 8% for monthly, quarterly, half-yearly, and annual intervals, respectively.

If you’re looking at a long-term deposit ranging anywhere between 36 and 60 months, you will receive an interest rate of 8.05% on your cumulative Fixed Deposit. With non-cumulative Fixed Deposits, you can expect 7.77%, 7.82%, 7.89%, and 8.05% for monthly, quarterly, half-yearly, and annual intervals.

While Fixed Deposits have always been a favourite choice of investment in our country, thanks to the high returns of investment and low rate of risk involved, you can maximise these benefits by investing in an NBFC. Look for a scheme that offers features that satisfy your financial needs. Ensure you don’t set unrealistic monetary goals without considering all your financial commitments and also including a chance of financial emergency.

Make use of the Fixed Deposit Calculator to determine a suitable tenure period and manage your finances. You may also consider smart investment options to amplify your returns.

Reinvest the interest into either a new Fixed Deposit or into the current one and boost the returns. If you have a lump sum of a principal amount, you could split the amount across multiple Fixed Deposits and ladder them to earn more. This choice also gives you access to high amounts of insurance against each FD.

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade.

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