4 NBFCs With High Safety Ratings Offers Up To 9.10% Interest Rates On FDs

In India, a fixed deposit (FD) has been a dependable and secure way to generate income. In recent times the rising FD rates made it even more attractive. Conservative investors looking for a secure investment in FD mostly rely on Bank FDs. However, FDs offered by Non-Banking Financial Companies (NBFCs) are also getting a major boost amid rising FD rates.

NBFC FD rates are generally higher than those of most conventional banks and financial institutions. Here we have listed 4 NBFCs that offers high-interest rates on FDs, rated high on safety by leading agencies.

1. PNB Housing Finance

PNB Housing Finance (PNBHF) is a leading NBFC rated AA/Stable rating from CRISIL, which indicates that the FDs are among the safest investments you can make. PNBHF offers FD rated for a period ranging from 12 months to 20 months on an amount upto Rs 5 cr. According to the PNBHF website, the rates are effective from 17 February 2023.

PNBHF under both the options offers FD rates between 7% p.a. to 7.70% p.a. According to the PNBHF Senior citizens above 60 years will get an additional 0.25% Rate of Interest above the regular interest. Also, the Senior citizen special rates applicable for deposits up to Rs 1 cr.

2. Bajaj Finance

Bajaj Finance is FD is rated CRISIL AAA/Stable & [ICRA] AAA (Stable). It offers FDs under two options Cumulative & Non-Cumulative. It offers FD rates starting from 7.35% p.a. up to 7.79% p.a. for the tenure starting 12 months to 60 months. Under both options, senior citizens above age 60 will get an additional rate benefit of up to 0.25% p.a. For the tenure of 15, 18, 22, 30, 33 and 44 months the company offers special FD Interest rates. The interest rates are applicable on the Minimum Rs 15,000 upto 5 Cr.

3. Mahindra & Mahindra Finance Services (Mahindra Finance)

Mahindra Finance offers the highest safety-rated FD rates. The Fixed Deposit has an IND AAA/Stable rating by India Ratings & CRISIL AAA/Stable rating by CRISIL Ratings which indicates the highest safety. Mahindra Finance offers FD under the name of Dhanvruddhi and Samruddhi.

Under the Dhanvruddhi scheme, it offers Cumulative and Non-Cumulative FD options and under the Samruddhi scheme, it offers Cumulative & Non-Cumulative FD options for upto Rs 2 Cr and and above Rs 2 Cr and up to 5 Cr. Under the Samruddhi scheme investors can also book Buld Deposits above Rs 5 cr (Cumulative & Non -Cumulative options)and above Rs 25 Cr (Only Cumulative option).

One can book FD under the Dhanvruddhi scheme which provides 7.65% p.a. and 7.75% p.a. interest rates on the minimum deposit amount of Rs 5,000 for 30 and 42 months on deposit amounts upto Rs 2 Cr. While, for the Samruddhi scheme, to book FD under the 2 Cr, the minimum amount required is Rs 5,000 for the tenure of 12 to 60 months. The interest rate offered by the company is between 7.40% pa. to 7.7% p.a.

According to Mahindra Finance, "0.25% additional interest rate for senior citizens for Samruddhi Fixed Deposits and 0.35% additional interest rate for all Mahindra group company employees & their relatives for Samruddhi Fixed Deposits."

4. Shriram Finance

Shriram Finance has been Rated "[ICRA] AA+ (Stable)" by ICRA and "IND AA+/Stable" by India Ratings and Research, which makes it one of the safe and secure FDs. The company offers FDs cumulative & Non-Cumulative options for the tenure ranging between 12 to 60 months. The interest rates offered by the company is between 7.60% p.a. to 8.50% p.a.

The company offers additional interest of 0.50% p.a. to senior citizens (Above 60 age). It also offers additional interest of 0.25% p.a. on all renewals, an additional 0.10% p.a. to women depositors. Considering the additional interest rates, a deposit can expect up to 91.0% p.a. interest rate of their FD with Shriram Finance. To book an FD with the company, a minimum Rs 5000 is required and in multiple of Rs 1000.