Why To Deposit Money In NBFC Fixed Deposits: Interest Rates Offered, Risk Involved

Depositors are always on the lookout of earning a higher rate of interest in comparison to the State Bank of India (SBI) FD interest rates. When the earnings from a bank fixed deposits (FDs) stay at moderately average level, there are some alternatives such as corporate bonds and fixed deposits (FDs) with small finance banks, which offer nearly 150-200 basis points higher interest rate than that of bank FD of state-run banks such as State Bank of India (SBI). Another viable alternative for making some extra bucks is to deposit money in a fixed deposit (FD) scheme of an NBFC (non-banking financial company).

Bajaj Finserv, for instance, offers an interest rate upto 7.85 per cent (according to its website bajajfinserv.in), which is nearly 220 basis points higher than the SBI FD interest rates of 6.65 per cent for one year duration. Similarly, Kerala Transport Development Finance Corporation (KTDFC) offers an interest rate of 8.25 per cent for one-year, two-year and three-year fixed deposit (FDs). The long duration fixed deposits (FDs), for four years and five years, fetch an interest rate of 8 per cent, according to www.ktdfc.kerala.gov.in.

Kerala Transport Development Finance Corporation Fixed Deposit (FD) Rates