As the fixed deposit (FD) interest rates offered by large public sector banks (PSBs) such as the State Bank of India (SBI) stay stunted at 6.65 per cent on its one-year FD, the depositors can explore a viable alternative of opening fixed deposits (FDs) with the NBFCs (non-banking financial companies) that pay significantly higher interest rates, which are atleast 100 basis points higher than the SBI's FD rates. For instance, Diwan Housing Finance Ltd (DHFL) offers a rate of interest, which jumps to as high as 8.5 per cent when the deposit is made for 60 months. A one-year deposit fetches an interest rate of 7.7 per cent, which rises to 7.9 per cent and further to 8 per cent in case of 24 month deposits.
Diwan Housing Finance Fixed Deposit (FD) Rates
|Tenure||Minimum deposit||Cumulative Interest rate|
Mahindra Finance deposit rates start from a whopping 7.95 per cent (130 basis points higher than the SBI FD rates) for FD tenure of 15 months. The rate of interest rises to 8 per cent in case of 20-month tenure fixed deposit (FD).
This further rises to 8.5 per cent and 8.75 per cent when the deposits are made for 27 months and 33 months respectively. Senior citizens are entitled to receive an extra 0.10 per cent.
Mahindra Finance Fixed Deposit (FD) Interest Rates
|Minimum Amount (Rs)||Tenure||Amount||Interest|
|Additional rate for senior citizens is 0.10%|
|Additional amount will be accepted in multiples of Rs. 1,000/-|
Similarly, Kerala Transport Development Finance Corporation (KTDFC) offers an interest rate of 8.25 per cent for one-year, two-year and three-year fixed deposit (FDs). The long duration fixed deposits (FDs), for four years and five years, fetch an interest rate of 8 per cent, according to www.ktdfc.kerala.gov.in.
KTDFC Fixed Deposit (FD) Interest Rates
Bajaj Finserv's rate of interest on a fixed deposit with a tenure of 12-23 months is a handsome 7.6 per cent, which soars to 8.15 per cent for a deposit with a tenure of 24-35 months. The long duration FD with a tenure that ranges between three years to five years fetches an interest rate of 8.4 percent. The senior citizens are entitled to receive 0.35 per cent extra rate.
Bajaj Finserv Fixed Deposit (FD) Interest Rates
|Tenor||Minimum deposit||Rate of interest|
|0.35% extra for senior citizen|
There is a list of NBFCs which are allowed to accept deposits. The list shows that there are 23 registered NBFCs in Delhi.
The list can be accessed here.
To protect the interests of depositors from the NBFC defaulters, the Reserve Bank of India (RBI) introduced a scheme of ombudsman in February this year, where the depositors can file a complaint if the NBFC skips the interest payment.