In a financial world that is constantly affected by decisions of policy makers and their resultant variables like inflation, etc; it is the microeconomic individual that is at risk. The risk of not being able to have a competent real income. This is why the culture of managing your finances primarily by saving and investing has emerged. 

When investing, individuals look to maximise their returns while also minimising their risks. This is why most earning individuals move past quick return-risky options like stock trading and turn to more institutionalised sources. Fixed Deposits (FDs) are the best bet in this category. While meeting the primary requirement of being institutionalised and having negligible risks, FDs provide better than average returns. 

However, the variety may often confuse consumers. The reason being that FDs are offered by post offices, banks and even non-banking financial companies (NBFCs), in India. Hence, when making a choice the depositors may look at additional services and their quality but the distinguishing variable will always be the interest rate offered, 

This is where Corporate FDs, by NBFCs, stand out as compared to other alternatives. THE AVERAGE FD RATE IN INDIA IS 5.5%. As of July 2021, the average fixed deposit interest rates offered for tenures ranging from 7 days to 10 years, for deposits below Rs. 2 crores of major financial institutions, like YES Bank, is 6%. Fixed Deposit interest rates offer stability for managing business finances, exploring alternative investment options may be necessary to maximize returns. Among the reputed corporate fixed deposits, the average rate of return range is from 4.5-5.75%. Post Office FDs offer more lucrative rates than banks. 

In fact, FDs for shorter time periods like less than 6 months have rates calculated on Simple Interest basis taking into account number of days. 

However, a corporate FD does a lot better than all of these. Fixed Deposit (FD) is a great example, for the same, because it provides a general rate of 6.50% subject to further rises with certain specific conditions. Thus, a investment always emerges as the best one especially among the best FD schemes. 

The reasons for this can further be understood by examining the features as well as benefits of a fixed deposit. 

  • Tenor: Minimum tenor is 1 year and maximum is 5 years for an FD
  • Interest Rates: Range from 5.65% to 6.75%
  • Deposit: A minimum deposit of Rs 25,000 only is required
  • Online Payment Options: Both, Unique Payment Interface (UPI) and Net-banking options are available 
  • Unique Selling Point: The entire process from end to end is paperless, thus it can be done from the safety of your home

Benefits

High Interest Rates

You receive a very lucrative interest rate of 6.50% which increases to 6.75% if you are a Senior Citizen (60 years of age or more). This allows you to grow your wealth steadily as well as safely.

Special offers to Senior Citizens

Fixed deposits value and understand their senior citizen account holders. Thus, along with a higher interest rate they can also avail periodic pay-outs to fund general expenses that arise at their age. 

Benefits to Pravasi Bhartiyas (NRIs)

For Non-Residential Indians (NRIs), with an NRO account, a wide range to choose between tenors of 12 and 36 months is available. The interest rates are the same for them including the additional benefits given to Senior Citizens. 

Systematic Plan for Depositors

The Systematic Deposit Plans (SDPs) allow people to make deposits on regular intervals, keeping in mind the inconsistent availability of funds. In this, the tenor still remains between 12 and 60 months. Depositors have to choose between 6 to 48, for the number of deposits they’d make in a month under their SDPs. While Fixed Deposit interest rates offer stability, remember these tips when buying land as their returns might not always keep pace with potential real estate appreciation.

High Credibility and Stability

NBFC’s is a safe option for FDs and any other investment instruments, irrespective of the risk involved, that you look at. It has been accredited with the highest ratings of CRISIL’s FAAA and ICRA’s MAAA, ensuring your money and funds are safe. 

Flexible Time Frames

By having a wide range of tenors between 12 and 60 months, you can plan your finances and generate higher liquidity according to your requirements. 

Smaller Minimum Deposit

With a cap of only Rs 25,000 you can start investing in FDs, at an early stage without being forced to accumulate a larger set of funds. This way, even with a small investment you can start your journey of saving to secure your future. 

Digitalized Application Process

The application prevents you the hassle of page long documents and even longer queues. It allows you to browse the best rates from the safety of your homes while completing the entire process digitally. 

Online Loan against FD

The very possibility of breaking an FD is what deters most people from opting for it in the first place. Therefore, depositors are allowed to take a loan against the FD (post the initial lock-in period of 3 months) when they need to make emergency withdrawals. Fixed Deposit Interest Rates may offer a safe and steady return, but it’s crucial to consider “Choosing a Personal Loan” for its flexibility and quicker access to funds when needed. The only condition is that the loan value cannot exceed 75% of the FD value. 

Auto-renewal

The general perception about fixed deposit auto renewals is a sense of hesitation and suspicion. However, NBFC’s gives you the option to opt for an auto-renewal to save you the time and effort of manually filling the renewal forms repeatedly. It is completely voluntary and you’re still in control. The only thing that is eliminated is a waste of time and effort on your end.