Press "Enter" to skip to content

Is Fixed Deposit Safe in India? Read Here

Safety of your investments is first. Regulators have set safeguards to ensure the safety of every investment. The Reserve Bank of India (RBI) regulates the deposit acceptance of banks, cooperative banks and NBFCs. ICRA’s and CRISIL’s credit rating is a measure of safety that ensures the obligations will be repaid on time. It helps investors to make an informative decision by taking into consideration the risk factors.

Only selected entities in India registered with RBI can accept public deposits. There are various requirements that a financial institution has to meet to accept and set aside sums accepted from the public.

NBFC’s Eligibility Criteria

Non-bank finance companies (NBFCs), which are registered with the Ministry Of Corporate Affairs (MCA) and having Certificate of Registration (CoR) by RBI along with a specific licence to accept deposits, can accept public deposits. NBFCs have to fulfil the below mentioned eligibility criteria:

  • They are allowed to accept public deposits for 12 months to 60 months.
  • They are allowed to open a fixed deposit account of NRIs with NRO accounts.
  • Nomination facility is available to the investors.
  • Registered NBFCs with RBI having a minimum net worth of Rs 100 crores or turnover of Rs 500 crores are allowed to accept public deposits.
  • NBFCs should have a minimum credibility rating by any of the six rating agencies – CRISIL, ICRA, CARE, FITCH, Brickwork or SMERA.

Hence, Fixed Deposits in India are absolutely safe following various rules and regulations of regulators and have become popular because of lower risk and guaranteed returns.

FD interest rates in India with banks are in the range of 5%-6.5%. As an informed investors, it is advisable to check the credit ratings of the FD instrument before making fixed deposit investments. If a company FD offers a higher interest rate, but doesn’t have good credit ratings, it is better to avoid investing in the same. Bajaj Finance FDs is one among the top company FDs in India which offers highest FD interest rates i.e. up to 6.85%. It is accredited with MAAA (stable) rating from ICRA and FAAA/Stable from CRISIL. These ratings indicate that the Bajaj Finance FDs have the highest safety and no investment risk.

Benefits of investing in Bajaj Finance FD

Apart from high interest rates, Bajaj Finance FD offers the following benefits:

  • You can book an FD with a minimum investment amount of Rs.25,000.
  • If you invest via an online application procedure, you can earn an additional interest rate benefit of 0.10%
  • If you opt for an auto-renewal, you can earn an additional 0.10% interest rate.
  • Bajaj Finance FD offers both the options- cumulative fixed deposit and non-cumulative fixed deposit. In the case of a cumulative fixed deposit, quarterly interest earnings are reinvested and the accumulated amount is paid on the maturity date. Whereas in the case of a Non-Cumulative Fixed Deposit, you have the flexibility to choose the frequency of periodic interest payouts as monthly, quarterly, half-yearly or yearly.
  • You have the flexibility to choose FD tenor ranging from 12 months to 60 months.
  • An online FD calculator to get an estimate of returns on your FD.
  • The Systematic Deposit Plan from Bajaj Finance gives an option to invest in an FD with small monthly deposits starting at Rs. 5000 per month. You can make 6 to 48 monthly deposits during a tenor ranging from 12 months to 60 months. Each deposit will be treated as a separate FD and the interest rate applicable on each deposit will be the prevailing interest rate as on the date of the deposit.

Safety and credibility of an investment are important parameters. The Reserve Bank of India is a regulatory body that regulates the deposit acceptance of banks and NBFCs. Credit ratings from agencies such as CRISIL and ICRA also indicate the creditworthiness on an FD investment.

Only selected entities in India which are registered with RBI can accept public deposits. Hence, it is evident that fixed deposits are safe in India. Among NBFC FDs, Bajaj Finance FD has the highest ratings of FAAA/Stable by CRISIL and MAAA (stable) by ICRA. Therefore, your investment is safe and you will earn assured returns if you invest in Bajaj Finance FD.

Author Bio:

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.

%d bloggers like this: