Bank Fixed deposit Rates Revised: Best Option is Company Fixed Deposit
One of the most discouraging factors when it comes to investing in a bank fixed deposit is the reducing interest rates. Reserve Bank of India’s (RBI) repo rate reduction is what leads to the revision of rates. In the current scenario, the revision has not been favourable regarding bank fixed deposit. A few years back, banks would offer an interest rate more than 8%, but in the last couple of years, the rates have declined considerably. However, fixed deposit as a medium of investment has not suffered backlash entirely as there are Non-Banking Financial Companies (NBFCs) which are still offering a high-interest rate.
When we talk about FD investment, three things need to be considered the most. The amount that is being invested, the period for which it is being an investment and the rate of interest that it is accruing. Regarding fixed deposit investment, it is essential that an investor seeks for an avenue which offers a higher interest rate. Without a doubt, the interest rate is the most effective part in determining the income once the deposit matures.
There are various Non-Banking Financial Companies (NBFCs) which are offering the service of fixed deposits. These financial companies are offering a higher rate of interest as compared to banks along with a flexible tenure. They have various eye-catching features along with attractive services. Even the process is quite easier as compared to banks.
The points above are just a few of the benefits that come with Company Fixed Deposits. Let us see the benefits in detail:
The rate of interest: While banks and other service lenders are offering a rate of interest of no more than 7%. NBFCs are offering a rate of interest on FD which is between 7.85%-8.05%. This makes fixed deposit investment a lucrative option. Apart from this, they offer 0.25% higher rate of interest to senior citizens to help them earn a higher profit.
Application process: The application process regarding an NBFC is quite convenient as compared to banks. While banks have long queues and haphazard management, an NBFC offers more convenience. They also offer online service wherein one can fill the application form online and get done with the process in few days.
Deposit amount: NBFCs have a steady requirement when it comes to deposits. The minimum deposit amount is INR 25,000. There are financial institutions which will offer you a higher return. However, logically, what is the use when the returns are going to be less.
Stability: Many people stay that NBFCs are not a go-to-option regarding stability. They are not safe and trustworthy. However, it is not true in today’s time as there are NBFCs which are as good as banks regarding stability. One of the highly accredited NBFCs, i.e., Bajaj Finserv has been awarded with ICRA’s MAAA (Stable) Rating and CRISIL’s FAAA/Stable Rating.
Added benefits: NBFCs offer more flexibility in fixed deposit investments. They even offer a monthly payout option. Herein, an investor can claim for monthly interest payout. Not many service lenders provide this. This makes the fixed deposit offered by an NBFC pro-liquid. Apart from the liquidity feature, NBFCs also provide services such as flexi deposit which adds to the liquidity feature along with combining savings and fixed deposit aspects.
The points above are the few reasons why you should invest in a company fixed deposit. Fixed Deposit offered by an NBFC is the most favourable ones in today’s time. So, if you are looking to park your surplus funds and finding the right avenue, an NBFC such as Bajaj Finance can be your go-to-option.
By RG