3 company fixed deposits that beat bank rates and are safe

Updated: Friday, December 21, 2012, 11:18 [IST]

Company fixed deposits offer you rates of interest that are higher than most of the reputed banks and more often than not, brokers also share their commission with investors. However, these deposits come with an element of risk. But, if you look at the highly rated companies, the chances of defaults are almost zero, while the returns are far higher than banks.

Mahindra and Mahindra Financial Services

Take the case of Mahindra and Mahindra Financial Services. The company is promoted by the Mahindra group and has a solid pedigree. The company is offering an interest rate of 10 per cent on three year deposits (non cumulative). This is at least one per cent over and above the interest rates offered by most banks and is very secure. The two year cumulative scheme comes with an interest rates of 10 per cent, while a three year deposit comes with a coupon rate of 10.25%.

Kerala Transport Development Finance Corporation

Kerala Transport Development Finance Corporation is a government of Kerala undertaking and the fixed deposits are guaranteed by the government of Kerala. The three year deposit gives an interest rate of 10.25%, while for deposits above Rs 25 lakh you get a sizeable rate of 10.50%. Being guaranteed by the Government of Kerala these are extremely secure and even more secure then some of the banks.

Shriram Transport Finance Company

Shriram Transport finance Company is yet another highly rated company, whose fixed deposits are highly secure. The company's fixed deposits offer an interest rate of 10.75% for three years. This is highly lucrative when compared to banks.

Investors are advised to lock into deposits of the above companies for a period of at least three years given that interest rates are likely to fall. The above listed companies are highly secure. Nonetheless, there is always an element of risk, though in the case of the above companies it is very minimal.

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