The
interest rates of a Fixed Deposit (FD) offered by banks have drastically dropped
in 2022. Correspondingly, NBFCs (Non-Banking Financial Companies) offer higher
interest rates than traditional banks. Many investors are now choosing a fixed
deposit as an investment option from a corporate/NBFC to save big and earn
bigger in the future. A fixed deposit from an NBFC like Shriram is the best
choice. It offers growth, safety and assured returns. This article will help
you decide which is the best corporate for you to create a good investment plan
for your future. So, is investing in an NBFC/corporate safe in India?
A
fixed deposit is the safest investment instrument in 2022 offered by banks and
NBFCs. However, there is a vast difference between the two in terms of interest
rates and the risk involved in offering different interest rates.
Corporate Fixed Deposit
A
corporate fixed deposit is offered by NBFCs to investors who are willing to go
beyond and above to secure additional returns in the short term. A
corporate/company fixed deposit provides one of the highest interest rates for
an FD. They range between 7-9% and even more for senior citizens with the highest
investment tenure. These rates are usually 0.5% to 3% higher than many
nationalised and private banks.
While
the interest rates from an NBFC are attractive, you can check their safety
ratings and standards before you book an FD. The corporate fixed deposit from Shriram
is considered secure because it is rated “AA+ (Stable) by ICRA” and rated “IND
AA+/Stable by India Ratings and Research”.
Benefits of a Corporate Fixed
Deposit
Below
is a list of benefits that are only offered by an NBFC/corporate that motivates
the investors to book a fixed deposit.
- Rate of Interest – As corporates and NBFCs are not managed directly by RBI, the FD interest rates are higher than banks.
- Flexible Investment Option – NBFCs allow you to choose an investment tenure based on convenience. You can start an FD from a minimum of 7 days to 10 years. A flexible investment option gives you control over your investment and makes future financial planning hassle-free.
- Easy Liquidity – You can quickly liquidate a corporate fixed deposit. However, the liquidity terms and conditions differ based on institutions.
- Unrestricted Premature Withdrawal – A fixed deposit account from NBFCs gives you the privilege to make premature withdrawals.
- Safe Investment Option – As most NBFCs are rated by CRISIL, ICRA or India Ratings and Research, your fixed deposit with a corporate or NBFC are usually safe and secure.
- Stable
Interest & Guaranteed Returns – The interest rates
in a corporate fixed deposit will remain stable and not change based on market
fluctuations.
Shriram is a Safer Choice for
an FD Investment
Unlike
banks, Shriram offers flexible fixed deposit schemes for 2.12 million customers
worldwide and one of the highest interest rates of up to 8.40% p.a. With
compounding interest from Shriram’s Fixed Deposit, you can invest your money
and enjoy more significant benefits in the future.
Below
are some points that make Shriram stand out from its competitors in 2022.
- Shriram has a track record of more than 40 years of successful and timely fixed deposit payments.
- Shriram Finance has been rated “AA+ (Stable) by ICRA” and rated “IND AA+/Stable by India Ratings and Research”.
- Shriram Finance is widespread in the country, with 1758 branches and 831 rural centers.
- Shriram is India’s largest and
most trusted asset-based NBFC.
3 Must-Knows Before You Invest
in a Corporate Fixed Deposit
Although
NBFCs offer several benefits for investors, you should consider a few points
before investing in a corporate fixed deposit.
Premature Withdrawal
– NBFCs allow you to withdraw cash before maturity. However, they levy a
penalty. Most corporates/companies/NBFCs have a lock-in period of three months
when you cannot withdraw money. But, even after the lock-in period, NBFCs
charge 1-2% as a penalty for premature withdrawal, reducing your accrued
interest amount.
Post-Tax Return
– The interest earnings on a corporate fixed deposit are considered “Income
from Sources” and taxed under Income Tax Act, 1961.
Default Risk
– Most of the NBFCs in 2022 are rated for safety by CRISIL, ICRA and India
Ratings and Research. However, few NBFCs are unsecured. When planning an FD investment,
you should check the company’s ratings and maturity payment history and then
decide accordingly.
Before
considering all the above points, prioritise your future financial needs. Once
your priority is aligned, choose a company that can satisfy your needs.
Invest with Shriram!
Shriram
is flexible to investors’ financial needs. From choosing the fixed deposit
tenure to transferring the maturity amount to your bank account, Shriram offers
flexible service and continuous support. The trust and utmost dedication to
serving its customers has made Shriram the most reputed corporate in India for
a fixed deposit! So book an FD with Shriram!
Key Highlights
- The interest rates of a Fixed Deposit from banks have dropped to around 5% in 2022.
- Many investors have started choosing an alternative investment option to save big in the present and earn bigger in the future.
- A fixed deposit from a corporate / Non-Banking Financial Company (NBFC) like Shriram is a better choice because it offers growth, safety and assured returns.
- NBFCs also offer one of the highest interest rates to help you grow and meet your financial needs in the future.