NBFC FDs Hit 7.40%: Is Your Savings Rate Keeping Up?

Sundaram Home Finance has raised FD interest rates by up to 0.25%. Regular investors can now earn 7.25% for 3-year deposits and 7.40% for 4 and 5-year deposits. If your bank FD pays less, it may be time to compare alternatives.

Here's what happened: Sundaram Home Finance has raised fixed deposit rates by 0.25%, taking 3-year FD rates to 7.25% per annum for regular depositors.. Four-year and five-year deposit rates now stand at 7.40% per annum, making them competitive against top-tier bank FD offerings.. The hike follows a broader trend of housing finance companies and NBFCs raising deposit rates to attract retail savers in a high-rate environment..

What you should do: Compare your current bank FD rate against NBFC offerings — if you're earning below 7%, explore switching at your next maturity date.. Check the credit rating of any NBFC FD before investing — look for AAA or AA+ rated instruments from agencies like CRISIL or ICRA for safety.. If you are a senior citizen, specifically ask for the senior citizen FD rate — it is typically 0.25–0.50% higher and can push your effective yield above 7.65%..

NBFC FDs are NOT covered by DICGC's ₹5 lakh deposit insurance. Spread your NBFC FD investments across issuers and keep amounts manageable — don't put your entire emergency fund in one NBFC FD.