NBFC Fixed Deposit 2025

Besides banks, depositors can book NBFC fixed deposits (FD) to diversify their FD holdings. It helps avail high interest rates from different financial institutions to maximise your returns from fixed deposits.

Our partnered NBFCs offer competitive rates for senior and non-senior citizens to help them grow their corpus. Compare the NBFC interest rates currently offered by different reputable companies and improve your interest income without taking high risks.

NBFC Fixed Deposit Interest Rates for Non-Senior Citizens

Here are the fixed deposit interest rates for non-senior citizens from our partnered NBFCs as of December 2024:

Book your FD now at one of our partnered NBFCs with the Stable Money App!

NBFC Fixed Deposit Rates for Senior Citizens

The following are the interest rates for senior citizens as of December 2024 from our NBFC partners:

If you are a senior citizen, avoid visiting NBFCs and book your FD with our App!

How Are the NBFC Fixed Deposit Interest Rates Calculated?

Here are the considerations to calculate NBFC fixed deposit interest rates:

• Financial condition and market fluctuations
• The tenure of investment
• Deposit amount
• RBI policies followed by the repo rate
• Ratings by credit rating agencies like CRISIL, CARE, ICRA and others
• Profile of the investor
• Type of fixed deposit booked

Factors Affecting NBFC Fixed Deposit Interest Rates

Here are the factors affecting NBFC fixed deposit interest rates:

1. Credit Ratings

NBFCs with lower credit ratings typically offer higher interest rates to compensate for the higher risk taken by depositors. A higher rating indicates that investors can rely on the NBFC for fixed deposit booking. 

1. Market Fluctuations

Like banks, NBFCs too determine the fixed deposit interest rates based on changes in the market. Their interest rates are affected by the economic condition of the country, repo rates and inflation rates.

1. Tenure, Investor and Fixed Deposit Type

The tenure of investment significantly affects the interest rate. Usually, a longer tenure offers a higher interest rate for depositors. In addition, senior citizens (investor type) usually get a higher interest rate than non-senior citizens. Booking a cumulative fixed deposit over a non-cumulative fixed deposit can also help depositors earn higher interest income due to the compounding effect.

Pros and Cons of NBFC Fixed Deposits

Here are the benefits of booking an NBFC FD:

• Higher Interest Rates: Usually, NBFCs offer a higher interest rate compared to banks for a specific amount and tenure.
• Convenience: You can seamlessly open fixed deposits with NBFCs online at your convenience or choose to visit their branch for offline FD opening.
• Flexibility: Depositors can choose a tenure based on their financial goals, which range from a few months to a few years.

Here are the disadvantages associated with NBFC fixed deposits:

• Higher Risks Compared to Banks: As NBFCs do not have a regulatory entity like banks, they carry higher risk of defaults compared to traditional banks.  
• Tax Implications: NBFCS do not offer tax-saving fixed deposits, unlike banks that provide options to depositors to choose an FD based on their needs.

Penalty on Premature Liquidation of NBFC Fixed Deposits

NBFCs allow premature liquidation of fixed deposits if the depositor needs emergency funds. However, they charge a penalty on the interest rate for that tenure on premature FD liquidation. 

Here is an example to elaborate on the penalty for premature FD liquidation:

TDS on NBFC FD Interest Income

Interest income from NBFC FD is taxable based on the depositor's income slab and tax rates. TDS (tax deducted at source) is deductible if the total interest income exceeds ₹5,000 in a financial year in a company fixed deposit. If PAN card details are submitted to the NBFC by the depositor, a 10% TDS applies. However, if the depositor fails to submit PAN card details to the NBFC, a 20% TDS applies. 

Plan your FD corpus and book your fixed deposit now on our website seamlessly!