It is true that investors are now moving towards Fixed Deposits of NBFCs who are offering better Interest rates on deposits during the last two months. These companies have raised the deposit rates by 50 to 75 basis points. These companies are:
- Bajaj Finance
- Mahindra Finance
- Shriram Transport Finance
- HDFC Ltd.,
To quote a few:-
|SNo||Name of the Company||Ratings||Present Interest rate Offered|
|1||Bajaj Finance||AAA||8.4% on a 3 year deposit|
|2||DHFL||AAA||8.45% on a 3 year deposit|
|3||Mahindra Finance||AAA||8.5% for a five year deposit|
Further the views from various angles reveal that:
- The hikes are in line with the upward movement of interest rates in our economy
- Investors and Retirees are more attracted to these desposits since they offer 1 or 2 per cent interest rates more than Commercial Banks- For example SBI and HDFC Bank offer 6.75% and 7% for a five year deposits respectively.
- It is also noteworthy to add that DHFL and J M Financial Credit Solution had offered higher interest rates in the range of 8.5% to 9.5% on their NCDs (Non-convertible Debentures). However, all those who subscribed for the same could not get full allotment. Further, the Retail Customers were restricted from applying on such NCDs for more than Rs. 10 lakhs.
- Since pre mature closure of Fixed Deposits before completion of three months, from the date of FDR is not permitted, many High Net worth investors are not keen in keeping money in company FDs.