If you are planning to save your money, then get yourself familiar with the fact that it is not possible to earn higher returns over savings account. Besides, you can only earn returns annually plus the returns are also low. People usually hesitate when it comes to investments. The general perception is – investment involves risk. But when we consider the other side of the coin, high risk helps you to yield higher returns. In some cases, even with moderate or zero risks, you can still earn considerably high returns. However, the room for such an investment option is very narrow, and there are not many investment avenues that offer both – safety and high returns, except fixed deposit.

A reason why Indians prefer FD more over other investment options is (a) They are safe, (b) They offer higher returns and (c) They don’t depend upon market conditions. In a scenario where investments are market linked – fluctuations are bound to happen. A working case individual with a fixed salary usually doesn’t have the courage to play this game of ice and fire. Thus, fixed deposit is most resorted to earning a profit without being dependent upon the market situation.

The investment strategies of working class individuals have been seriously affected. A major reason for that is demonetization. A cut down of repo rates has affected the investment plan seriously. Apart from this, the announcement of Budget 2017, has seemed to upset many new investors. Since the interest rates on this investment avenue have dropped down significantly, many are posed with a question – whether to invest or not? Given the current situation and all the hesitation pertaining to it, still there are options where you can earn higher benefits on your investments.

Company fixed deposits:

There are many Non-Banking Financial Companies (NBFCs) which offer FD plans with a higher rate of interest compared to banks. These FDs are known as companies fixed deposits. Apart from the interest rate, the process is similar to that of banks. Usually, company’s fixed deposits are mistaken as a less trustworthy investment – which is totally false.

Here are some things about NBFC’s fixed deposit that will help you know more about them:

Features of company fixed deposit:

Credibility:

Some NBFCs are awarded ICRA’s MAAA and CRISIL’s FAAA rating, which makes them trustworthy and reliable place to park funds in. These ratings assure that company’s fixed deposit is a safe place to invest in.

Online application process:

As NBFCs offer an online application process, it gets very convenient and easy for the applicant to apply for the fixed deposit. Also, the FD account can be managed online with ease. Thus, this saves time and helps you access your account from any part of the world.

Minimum deposit amount:

In case if you have a small amount and wish to invest it, then you don’t need to hesitate about the investment amount. NBFCs allow a minimum investment amount up to INR 25,000. This means you don’t have to park your small profits in a savings account; you can still plan to invest it.

FD calculators:

You can estimate the exact interest amount offered on your fixed deposit investment – with the help of FD calculators . By using the tenure period, invested amount and the rate of interest you can calculate your returns. Enter these digits, and the FD calculator will evaluate your interest amount.

Tenure:

You are free to choose the tenure ranging from 1-5 years while investing in fixed deposit. Also, after your fixed deposit is matured – you can go for a reinvestment for the desired tenure.

Concluding with, NBFC’s fixed deposits should be a preferable choice if you want to earn high returns and don’t want to take the risk. NBFCs like Bajaj Finserv is a good place to park your funds in, as they are both trustworthy and safe.