Non-Banking Fixed Deposits (NBFC FDs)
Non-Banking Fixed Deposits are investment products offered by Non-Banking Financial Companies (NBFCs) that typically provide higher interest rates than traditional bank FDs. These are suitable for investors seeking steady, fixed-income returns with flexible tenures.
Unlike bank FDs, NBFC FDs are not insured by RBI’s DICGC, but reputed NBFCs maintain high credit ratings and strong track records to ensure investor confidence.
Examples of Reputed NBFC FDs
- Bajaj Finance Ltd
- AAA-rated by CRISIL and ICRA
- Offers flexible tenure (12–60 months)
- Trusted for strong financial performance
- Mahindra Finance Ltd
- Part of the Mahindra Group
- Offers stable returns with tenures from 12 to 60 months
- Suitable for conservative and rural investors
- Shriram Finance Ltd
- Leading NBFC in vehicle and small business finance
- Offers cumulative and non-cumulative FD options
- Attractive rates, especially for senior citizens
- LIC Housing Finance Ltd
- Subsidiary of LIC, one of India’s most trusted brands
- Offers secure fixed deposits with good returns
- HDFC Ltd (merged into HDFC Bank now)
- Earlier one of the most reputed NBFCs for FDs
- Offered consistent performance and high ratings before merger
Why Invest in NBFC FDs?
- Higher interest than bank FDs
- Diversified investment option
- Choice of cumulative or non-cumulative interest payouts
- Trusted names with strong credit profiles
