1 / 10Mortgage lender HDFC, one of the best-rated NBFCs in the country, has increased rates on fixed deposits maturing between 33 and 99 months by 10-25 basis points for the first time in 29 months.2 / 10HDFC said from March 30, fixed deposits of 33-month duration will fetch 6.2% annualised returns while fixed deposits with 66-month maturity will now fetch 6.6% interest rate and the 99-month deposits will receive 6.65% interest rate.3 / 10Further, senior citizens would get 0.25% more on the above-mentioned rates.4 / 10Worth mentioning here is that this is the first time after October 2018 that HDFC Ltd has raised deposit rates.5 / 10“Bond yields too have moved up and overall interest rates are on an upward trajectory, which has led to some companies raising rates” the Economic Times quoted Anil Chopra, group director, Bajaj Capital as saying in a report.6 / 10In February, Bajaj Finance, another top-rated lender had raised interest rates on fixed deposits by 40 basis points. Fixed deposits from Bajaj Finance with tenures of three to five years earn 7%.7 / 10However, some NBFCs have cut their deposit rates in the recent past. Shriram Transport Finance, which paid over 8% interest, has reduced deposit rates by 15-25 basis points. It will now pay 8.25% for a five-year deposit, the ET report mentioned.8 / 10The publication citing distributors mentioned that in the pandemic, top-rated corporate deposits from strong groups rose as investor appetite for riskier fixed income instruments has been low. Defaults by DHFL, IL&FS and Franklin Templeton shutting down six debt schemes have prompted many investors to stick to simple fixed deposits.9 / 10Many senior citizens use monthly interest options to meet their cash flow needs as these instruments give them predictable returns.10 / 10Financial planners believe investors whose income is not subject to tax or are in the marginal tax bracket could consider these deposits. “After the hike in rates what you get from HDFC is 100-120 basis points higher than what is paid by bank deposits,” Anup Bhaiya, Founder, Money Honey Financial Services, told the business daily.