Aamir Hussain, a resident of Kolkata, was a businessman who had saved some amount and wanted to open an FD account that can give him good interest based rewards.
He had saved all his money in his bank’s saving account and opted to open an online fixed deposit with the same bank for Rs.1 lakh and got an offer of 6.35% as interest.
He accepted the offer and was a happy man. One day, his one of the childhood friend from Asansol, Shashank Awasthi came to Kolkata for some work and also visited him. They both went for lunch together and discussed their FD accounts as well.
Shashank told him that he was not only getting 7.95% on investing only Rs.25,000 for five years with a known non-banking finance company (NBFC) whereas Aamir was getting a lesser profit on a larger amount over the same tenor.
Shashank suggested Aamir close his bank’s FD account prematurely, take all amount and apply online with his NBFC and earn more. Aamir did the same and today he is sure to get more out of his investment because FD accounts are not affected by market risks.
If you are the one like Aamir and want to know how an NBFC FD account can give you more, let’s provide you with 5 reasons to prefer it over your bank.
- A higher Interest Rate
When compared to banks, a non-banking finance company can offer you an interest rate as high on FD as 8.10% as per your membership status and age. Thus, when you know that your investment will fetch you more, it would be prudent to invest with a service provider who offers a bigger return, right? You can choose between cumulative and non-cumulative fixed deposits and reap out more rewards.
- Provides better security
Because non-banking finance companies (NBFCs) have ICRA’s MAAA and CRISIL’s FAAA ratings, you can be double sure that your FD investments are safer and never risk-prone.
- Save on taxation
You should know that your interest income on your FDs is taxable. Yes, if your interest profit happens to be Rs.10,000 per annum, you will be taxed 10% as TDS. However, senior citizens, housewives, students and some more categories of investors are exempted from paying taxes and for that, you will need to inform your company to avail the same. Further, you can extend your tenor to 5 years and invest Rs.1,50,000 and avoid paying taxes. You can also split your FD investments into many more FD accounts so that the yearly interest gains do no reach Rs.10,000.
- Flexible tenor facility
Flexibility is also one major factor that you should choose an FD with an NBFC. They offer you the freedom to choose between 12 to 60 months. What’s more, you are also free to open more than just one FD. As per your different financial goal, you can open various fixed deposit schemes and keep track.
- On the go services
Reputed non-banking finance companies (NBFC) also offer you to open your fixed deposit account online and from the comfort of your home. What’s more, you can also track the progress of your FD investments as these service providers also let you access your accounts online.
The Bottom Line
Thus, just like Aamir and Shashank, you can also gain more from opening an FD account other than just availing a good return on fixed deposit interest rate.
When you need some urgent money, you can keep your FD money as collateral and take out a loan against it as well. Want to start now? Apply online and make the most of your FDs today!