One of the most stable investment options is a fixed deposit (FD), which ensures the safety of your funds while producing a steady return. This finally helps you reach all of your financial objectives. Both banks and Non-Banking Financial Companies (NBFC) offer fixed deposits with variable interest rates. You must research and contrast the market's current FD rates before investing. You may assess the returns on your FD when budgeting your expenses by doing a little market research.
Before starting your research, you must be aware of what NBFC’s and bank FDs are and what they have for you.
1. Bank or NBFC FD, which offers higher returns?
Every individual who wants to invest ideally looks for options that offer higher returns along with the security of their funds.In the case of FD, NBFCs offer 1-2% higher interest rates than banks.Several top nationalised banks provide rates in the range of 5-6% p.a.
Private banks offer rates up to 6-6.50% p.a., and NBFCs like Bajaj Finance offer interest rates of up to8.65% p.a. on fixed deposits.
These rates also depend on how long you are holding your funds in an FD. A longer tenure results in larger returns as the tenure you select for your investments affect the FD rates. NBFC like Bajaj Finance, offers you to start a fixed deposit with just Rs. 15,000 for tenure ranging from 12 months to 60 months. You can receive a maximum return of up to 8.65% p.a.* on Bajaj Finance Fixed Deposit.
