The 21st century has witnessed the emergence of various financial institutions such as Non-Banking Financial Companies (NBFC), investment banks, internet banks, and brokerage firms, etc. The financial market has grown leaps and bounds with the way it interacts with its depositors and borrowers. The primary thing that all these institutions have in common is that they all provide a Fixed Deposit (FD) scheme. Fixed deposit (FD) is a kind of investment option offered by banking and non-banking institutions which is recognized by its high-interest rate and for its assured returns.
Post Demonetization Scenario
The scenario post-demonetization has seen an increase in Fixed Deposit Interest rates by non-banking financial companies as compared to banks. This transition has been influenced by the need for raising funds by NBFC’s. Non- Banking Financial Companies are financial institutions which have been registered under The Companies Act, 1956. It performs the same functions that a commercial bank performs such as
Non-banking financial companies started offering their Fixed Deposit rate higher as compared to commercial banks due to the arising current market conditions. Non- Banking Companies are offering their Fixed Deposits at interest rates between 8.40%-8.75percent as compared to commercial banks providing an interest rate at 6.85% respectively.
Invest After Risk Ascertainment
Investors in general are tempted to invest in Fixed Deposits after seeing the high-interest rates associated with them. It is recommended that individuals take proper risk ascertainment before investing in any Fixed Deposit provided by non-banking financial companies. The aspects to be analyzed before investing in a Fixed Deposit scheme are as follows-
These are some of the aspects that need to be ascertained before investing in a Fixed Deposit scheme so as to ensure that the individual doesn’t fall prey to any misrepresentation or frauds.
Optimize Your Investments with Bajaj Finance
Bajaj Finance provides Fixed Deposit scheme to individuals as an avenue for safe investments. The features provided under Bajaj Finance are:
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