Which Company is the Best for a Fixed Deposit in India?

Saving money is the best way to build wealth. Building wealth does not happen overnight. It requires wise spending and saving a small amount of your earnings. There are countless investment options available in India today. But people prefer a fixed deposit because it encourages saving and offers safe returns. Although banks are reliable, NBFCs (Non-Banking Financial Companies) are the game changers in 2022 because they provide all the features of banks and offer the highest interest rate in India.

Investing in an FD (Fixed Deposit) is simple and quick. It is the go-to investment tool offered by banks and NBFCs to help people save and yield massive maturity amounts. It guarantees returns on your investment, and the interest rate is not affected by any changes or fluctuations in the market.

If you are someone looking for a beneficial and the highest rewarding NBFC in India to invest in, you can choose an FD scheme with Shriram Fixed Deposit.

Why Invest in a Fixed Deposit?

As the name suggests, a fixed deposit is a simple investment plan in which you can deposit a considerable amount of money for a fixed time and reap the benefits by gaining a lump sum at maturity. You do not need to know any complex rules or terms & conditions for starting an FD investment.

An FD is the safest choice if you have a considerable amount of money and want to start your investment journey. You can book an FD, carry on with life, and receive an interest payout regularly or a lump sum payout at maturity.

Here is a list we have compiled to show why you should invest in an FD

• Rate of Interest – Most investment returns are subject to change. But FD is stable and provides assured returns at a fixed rate.
• Flexible Tenure – You have the freedom to choose the term of your FD.
• Loan against FD – You can get loans up to 90% of the amounts against your FD.
• Assured Returns – The return on your FD is guaranteed. You will receive the same maturity amount agreed upon when opening your FD.

How to Choose the Best Fixed Deposit in India?

Many banks and NBFCs in India offer numerous fixed deposit schemes. Here are a few features to consider while choosing the best-fixed deposit in India to make the job easier for you.

•          Interest
•          Credibility
•          Premature withdrawal
•          Loan
•          Penalty rates
•          Type of deposit
•          Bank or NBFC

10 Important Points to Know Before Choosing the Best NBFC in India?

Although banks offer the best FD schemes, NBFCs offer the most attractive interest in the market. Their compliance, rules, and regulations are the same except for a few differences. A bank is a government-authorised financial intermediary. But, NBFC is a company that provides banking services to people without holding a bank license.

1. Check the NBFC’s history and the repayment record.
2. Check the credit score of the NBFC because a company with a low credit score will offer high-interest rates to attract depositors
3. You should check the company's rating and not only the company profile.
4. It would be best to avoid companies that offer more than 15% interest rates and companies that do not pay regular dividends.s
5. You should not deposit with unrated deposit schemes offered by small NBFCs. Only ‘A’ rated NBFCs can accept deposits.
6. It would help if you chose NBFCs with a good reputation and ‘AA’ or ‘AAA’ rating. Besides, NBFCs like Shriram are the safest NBFC in India, with an ‘FAAA’ rating.
7. Longer investment yields a high-interest rate. However, it would help if you try a short-term FD scheme to check NBFC's service and then plan for a more significant investment.
8. You should analyse the lock-in period of the deposit offered by the NBFC. Because most of the deposit schemes in NBFCs have a lock-in period of three to six months.
9. You should be aware of default risk, i.e. certain NBFCs do not return the amount with accrued interest at maturity.
10. NBFCs are not managed by the government or RBI, while banks are governed and regulated by RBI guidelines.

Choosing an NBFC in 2022 can be tedious, but considering the above ten important points will save time and help you choose the best and most rewarding NBFC for your fixed deposit investment.

Start Your Investment with the Best NBFC in India

If you are looking for the best investment option, a fixed deposit with an NBFC like Shriram is the right choice. It offers secure investment with good interest returns for a tenure of your choice. Likewise, choosing Shriram Fixed Deposit as your investment plan in 2022 will increase your wealth and gives you solid financial support in the future.