How to Choose the Right Financier for Fixed Deposit?

Investing in the right instrument is very important to get proper returns and maintain your financial stability. Out of multiple options available for investment, investing in Fixed Deposits is considered as the safest investment. As FD interest rates are not affected by market fluctuations, their returns are always fixed.

Though FD investments give safe and fixed returns, the rate of return is generally lower than other investment options like stocks and mutual funds. However, investing in FDs with Non-Banking Finance Companies (NBFCs) gives you returns at a higher rate as compared to FDs with banks.

As different non-banking companies provide FDs at different rates and different facilities, it becomes difficult for an individual to choose the right company to invest with. If you are facing this confusion, then you should check the below-mentioned list of factors to determine right company to invest with:

Easy Application Process

The first thing that you will be required to do for opening a fixed deposit account with any company is to apply for an FD account. In today’s technically advanced world, you no longer need to waste your time and energy to go out of your home to invest in a fixed deposit. Nowadays, many companies provide online application facilities to open FD accounts. Along with online application facility, you should also look for the companies that provide online account management options. By selecting a company that has account application and management option, you will save your time and energy while also enjoying safe and fixed returns.

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Rate of Interest

The most important factor in deciding the right company for fixed deposits is the rate of interest that they provide. Though NBFCs provide higher FD interest rates than banks, it is important that you select the one that gives highest rates. NBFCs provide FD facilities with interest as high as 8.75%.

As most of the companies provide FD calculators on their websites, you can first calculate the returns in the chosen companies and invest in the one that provides the highest returns. Thus, to take an informed decision, you can use the FD calculators and opt for the company that suits you the best.

Credibility of the Company

Although a higher interest rate is important to get the best returns, you should select a company that is credible and safe. It might happen that after the maturity of your FD account you might not get the expected return that you had calculated, because the company has deducted some hidden charges. Hence, to make sure you get the returns that you deserve, you should choose a reputed and credible company. For instance, NBFCs has been certified as “MAAA (Stable) company by ICRA and “FAAA (Stable) by CRISIL. These certificates justify NBFCs Fixed Deposit as the safest and most stable investment that gives you timely returns.

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Flexibility of Tenor

Along with easy application and high returns, a company should also provide you the flexibility of tenor. You should be able to select the tenor of your FD according to your financial requirement. The liquidity of FDs is also an important factor. Flexible tenor can give you the desired cash flow according to your investment plan. Therefore, you should select a company that gives you a choice to select an FD term according to your choice.

Apart from the points mentioned above, you should also consult a company representative for the charges applicable to your FD account.

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