Can We Transfer a Fixed Deposit from a Bank to NBFC? 

According to the latest reports, RBI has increased the REPO rate to 4.90% to tame the inflation in the country. This is excellent news for investors planning to invest in a Fixed Deposit (FD) with banks and NBFCs (Non-Banking Financial Companies). Many banks and NBFCs have increased the fixed deposit interest rates. However, the FD interest rates from banks are lower compared to the interest rates offered by NBFCs. Shriram, one of the leading NBFCs in India, currently offers the highest fixed deposit interest rate of up to 8.40%. Hence, many investors opt for NBFCs to multiply their FD investments using attractive interest rates and other added benefits.  

Opening an FD with a bank is reliable, but do you get an attractive amount at maturity? With the increasing safety standards, NBFCs are becoming safer and more profitable for investments like a fixed deposit. For instance, Shriram is rated “[ICRA]AA+ (Stable)” for safety by ICRA and offers the most attractive interest rate for a fixed deposit account. 

What is a Bank Fixed Deposit? 

A bank fixed deposit is an investment option that allows investors to deposit a considerable amount into an FD account associated with a bank. Typically, the investment tenure of a bank’s fixed deposit ranges between 7 days – 10 years. Traditional investors prefer bank deposits for their reliability. However, the downside is that bank fixed deposit accounts carry a lower interest rate; thus, investment growth is also slow. 

What is a Corporate Fixed Deposit? 

A corporate fixed deposit is an investment option offered by NBFCs to help investors save their money for a fixed tenure at an attractive interest rate. As an FD already assures good returns, NBFCs go beyond expectations and offer higher interest rates for investors to build a profitable investment portfolio. 

Can a Fixed Deposit Be Transferred from a Bank to an NBFC? 

Investors stuck with lower interest rates and less flexibility with banks are finding ways to transfer their fixed deposit accounts from the bank to an NBFC. Although it is impossible to transfer a fixed deposit from a bank to an NBFC, you can close a bank fixed deposit and open a new one with an NBFC. NBFCs like Shriram offer the highest interest rate in the country, and it would be the best company to open a fixed deposit account in 2022. 

Let’s now take a detailed look at how to close a bank fixed deposit and open a corporate fixed deposit. 

How to Close a Bank Fixed Deposit? 

It is easier to close a fixed deposit account from a bank. You can choose to close the FD account via online or offline. For the online closing process, you need to log in to your net banking and follow the closure process. You can walk into your bank’s nearest branch and close your FD account quickly. Closing a fixed deposit after maturity is cost-free, but closing an FD before maturity will incur a penalty. 

How to Open a Fixed Deposit Account with an NBFC? 

There are two quick ways to open a fixed deposit account with an NBFC. They are as follows; 

Corporate Fixed Deposit Account Opening – Online 

Most of the NBFCs in 2022 have an official website through which investors can quickly open an FD account. NBFCs like Shriram help you calculate your fixed deposit returns using an FD calculator to make you confidently open an FD account. Besides, with an FD calculator, you can find the exact amount you would receive at maturity and the predetermined interest rates fixed by NBFCs. 

Here is a step-by-step guide to opening a fixed deposit account with an NBFC online. 

1. Create a login ID or utilise an existing login ID to enter into the NBFC’s portal for fixed deposit accounts. 

1. Select “Open Fixed Deposit Account” from the list of menus available in the portal. 

1. Add mandatory details like principal deposit amount, tenure and nominee details.  

1. Use net banking to transfer the principal amount from your bank account to the newly opened fixed deposit account. 

1. Upon completion of the deposit, you will receive a fixed deposit receipt which contains essential details like the investor’s name, tenure, maturity date and the nominee details.  

Corporate Fixed Deposit Account Opening – Offline 

Opening a corporate fixed deposit account offline is traditional yet simple. You can visit an NBFC branch, fill out an FD account opening application, submit necessary identity & address proofs for KYC verification and then deposit your principal amount to complete the FD account opening process. 

Open an FD Account with Shriram! 

Although transferring an FD from a bank to an NBFC is impossible, Shriram has made the FD account opening process more accessible, which helps investors to choose the rewarding NBFC. In addition, Shriram offers flexibility on FD investment and tenure to grow your wealth and help you build a profitable investment portfolio. Hence, close your FD with banks and double your investment with Shriram today. 

Key Highlights 

• RBI has increased the REPO rate to 4.90% to tame the inflation in the country.  
• Many banks and NBFCs have increased the fixed deposit interest rates. 
• The FD interest rates from banks are lower compared to the interest rates offered by NBFCs in 2022.  
• Opening a fixed deposit account with a rewarding NBFC like Shriram will help investors build a profitable investment portfolio.