NBFCs Fixed Deposit Interest Rates 2025 - Latest FD Rates

A fixed deposit plan provided by a non-banking financial company is known as an NBFC FD. In contrast to banks, NBFCs are not a part of the payment and settlement system and are unable to accept demand deposits (current or savings accounts). They are known to offer higher interest rates than traditional banks, though, and are subject to Reserve Bank of India (RBI) regulation.

A number of variables, such as the state of the market, the internal policies of the business, and its credit rating, affect interest rates. Making an informed choice requires checking the interest rate prior to opening an FD. It's critical to stay informed because NBFCs occasionally adjust their rates, frequently in reaction to changes in the financial environment.

It is a good idea to use an NBFC FD calculator before committing your funds. With the help of this tool, you can precisely calculate the amount of your maturity and the interest you will earn over the selected period. This enables you to evaluate various plans and suppliers in order to identify the one that best meets your financial objectives.

How to use the calculator:

1. Enter the deposit amount you wish to invest.
2. Select the desired tenure in months or years. A common option is 60 months.
3. Choose your investor type (general or senior citizen).
4. The calculator will instantly display your total return.

For example, if you invest ₹1,00,000 in a top-rated NBFC FD for 5 years, the calculator will show you how much your investment will grow, helping you make a data-driven decision.

NBFCs also offer attractive FD options for Non-Resident Indians (NRIs) to invest their earnings in India. The rate of interest for NRE FDs is a key feature, as the interest earned is fully repatriable and tax-free in India.

• Eligibility: To open an NRI FD, you must be a Non-Resident Indian or Person of Indian Origin (PIO).
• Tax Implications: The interest earned on NRE FDs is not subject to income tax in India, making it a highly efficient way to grow your foreign savings.

Investing in an NBFC FD comes with several advantages beyond just a higher interest rate.

• Higher Returns: As a key selling point, the interest rates offered by NBFCs are consistently more competitive than those from traditional banks.
• Assured Returns: Once you start an FD, your fixed deposits will earn a guaranteed return regardless of market fluctuations.
• Flexible Tenures: You can choose a tenure that aligns with your financial goals, from as short as 12 months to as long as 60 months or even more.
• Ease of Process: The process of opening an FD with an NBFC is often simpler and faster, with many companies offering a fully digital, online application process.

Many NBFCs provide a variety of FD schemes to suit different investor profiles and needs.

• Regular Fixed Deposits: The standard NBFC FD scheme with a fixed tenure and return.
• Tax-Saving FD: Some NBFCs offer a tax-saving FD scheme with a lock-in period of 5 years, which provides a tax deduction under Section 80C of the Income Tax Act.
• Special-Term FD: To attract investors, some financial institutions offer FDs with unique tenures, such as a 44-month or a 33-month FD, which come with a particularly high rate of interest.

When investing in a NBFC fixed deposit, you have the flexibility to choose how you want your interest to be paid out.

• Cumulative FD: The interest earned is compounded and paid out along with the principal at the end of the tenure. This option is ideal for long-term wealth creation.
• Non-Cumulative FD: This is for investors who need a regular income stream. You can choose to receive interest payouts monthly, quarterly, half-yearly, or annually, which is great for retirees or individuals seeking passive interest income.

The process of opening an fd with most NBFCs is straightforward and requires a few standard documents:

• Identity Proof: PAN Card, Aadhaar Card, Passport, or Voter ID.
• Address Proof: Aadhaar Card, Passport, or utility bills.
• Bank Account Details: To link your FD for interest payouts and maturity credit.

An NBFC FD's interest is entirely taxable. Your total income is increased by the interest income, which is then taxed at the appropriate slab rate. If interest earned in a fiscal year surpasses ₹5,000, NBFCs will deduct TDS (Tax Deducted at Source). To avoid TDS, you can file Form 15H if you are an elderly person and your total taxable income is less than the exemption threshold. Form 15G can be filed for everyone else.

A loan against your FD is a service provided by numerous financial institutions, including NBFCs. This is an excellent method of obtaining liquidity without breaking your deposit and facing penalties. The interest rate is usually 1% to 2% higher than your FD rate, and the loan amount can reach 90% of the deposit value. As you meet your financial needs, this guarantees that your NBFC fixed deposit will continue to generate its guaranteed returns.

By using your NDFC FD as security, certain NBFCs might grant you a credit card. Those with a low or nonexistent credit score will especially benefit from this. Your deposit amount determines your credit limit, and this is a great way to establish a good credit history.

The process of opening an FD with an NBFC is often quick and can be done entirely online.

• Online/Digital Process:
  • Visit the NBFC's official website or download their app.
  • Fill in the online application form with your details.
  • Upload the required KYC documents.
  • Make the deposit amount payment via net banking or a debit card. The FD is instantly booked, and you will receive a soft copy of the deposit receipt.