How the CRISIL rating makes your FD investment safer?


When it comes to investing, being aware about the risks in advance is the key to growing your wealth. Although this is not possible for all schemes, investment options like fixed deposits have a CRISIL rating to help you gauge the level of safety and reliability of making an investment with a financial company.

You can compare and review this rating to select the FD that offers the optimal amount of safety. Read further to know about the different CRISIL ratings for FD.

  • FAAA

This is the highest safety rating by CRISIL. It signifies that the FD you are planning to invest in will offer you timely returns in terms of both the principal and interest to meet your financial goals.

  • FAA+/FAA-

This rating that signifies a slightly lower safety as compared to the FAAA rating. While the FAA rating assures you returns, your earnings are not as assured as the FAAA ratings. The plus and minus signs are for the comparative standing within the category.

  • FA+/FA-

This rating indicates that the fixed deposit you are planning to invest in bears adequate safety with satisfactory interest earnings and return of the principal. However, changes in circumstances can have a bearing on your returns more than in the two categories above. The plus and minus signs are for the comparative standing within the category.

  • FB

This is a rating that is used for a fixed deposit that bears inadequate safety for your investment. This means that there is uncertainty and moderate risk in getting both the interest payments and your principal at maturity.

  • FC

This is the CRISIL rating that signifies that the FD comes with a high risk. This means that your investment could be subject to higher chances of loss of interest and return of principal.

  • FD

This rating is used for FDs that are guaranteed to default. If any issuer you come across has such a rating, you should refrain from investing, regardless of how attractive the scheme may seem.

  • NM

NM stands for not meaningful. Here the issuer may be in dispute before an authority or there is reorganisation or liquidation of the issuer rendering any rating meaningless. Again, do not invest in a company FD with this rating.

Now that you know about the various types of ratings, have a look at the primary benefit you of opting for an FD with a good CRISIL rating.

Guaranteed and timely returns: The primary aim of the CRISIL rating is to measure the level of safety and credibility associated with investing in an FD. So, choosing an FD  with an FAAA rating assures you that you will get your returns, be it interest payouts or the return of the principal you have invested within the promised timeline. This allows you to safeguard your investment.

In summary, this is how CRISIL ratings can help you select the right FD.

  1. They allow you to compare several options and choose the highest rated FD
  2. They provide a measure to gauge the level of safety associated with investing in an FD
  3. They help you avoid the risk of losing money
  4. They make the process of selecting an FD easier and faster

So, going for a fixed deposit with a high CRISIL rating is always better. This offers you guaranteed returns to meet your financial obligations as promised. This can help you build a strong corpus without the risk of losing money, be it for retirement, paying for your children’s educational needs, or for your family healthcare expenses.

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