6 company fixed deposits (FDs) to consider for investment

Investment

oi-Roshni

By Roshni Agarwal

Updated: Friday, August 2, 2013, 12:06 [IST]

After raising expectations that interest rates would fall, recent measures by the RBI hint at interest rates trending upwards. Here are a few company fixed deposits that offer higher interest rates when compared to banks. However, it's important to note that company fixed despots are unsecured and hence there is an element of risk.

1. HDFC Ltd - Platinum Deposits : With FAAA rating by Crisil, HDFC Ltd.-Platinum deposits is a safest bet for investors in the company fixed deposits category as the company is unlikely to default on the principal and interest payments. Resident citizens, NRIs and trusts can consider investing in this FD with a minimum amount of Rs. 20,000.

The scheme offers 9.4% interest rate for FDs with a maturity term of 15 and 33 months. For senior citizens, the FD provides an additional interests of 0.25%.

2. LIC Housing Finance Ltd: With a minimum investment amount of Rs. 10,000/- investors can invest in the fixed deposit scheme on offer by LIC Housing Finance Ltd. The scheme offers 8.75%, 9.0% and 9.25% interest rate for maturity term of one, two and three years respectively. FAAA/Stable rating by CRISIL for the FD is a reflection of the company's sound position with regard to its ability to discharge financial obligation of both the principal and interest payments.

3. Mahindra Finance - Samruddhi : For a minimum investment of Rs. 10,000 this FD by Mahindra Finance, a non-banking finance company, offers competitive interest rates of 9.25%, 10% and 10.25% for FDs maturing in one, two and three years respectively. The FD offers 0.25% additional interest to senior citizens and is FAAA rated by CRISIL that shows a high level of safety.

4. PNB Housing Finance Ltd : FAA+ CRISIL rated FD scheme offers investors an attractive interest rate of 9.3% with an additional interest of 0.25% for senior citizens . In this FD, an investor need to put in a minimum sum of Rs. 20,000. The interest income earned by investing in this FD also does not attracts TDS for a maximum amount of Rs. 5000 in a financial year.

5. Shriram Transport - Unnati : This fixed deposit scheme by commercial vehicle financing company offers 9.25%, 9.75% and 10.75% interest rate for maturity term of one, two and three years respectively. And, the minimum amount for investment in this FD is Rs. 25,000. The scheme also assures an additional interest of 0.25% for senior citizens. The FAA+ rating by CRISIL indicates the FD as being safe for investment purpose.

6. Dewan Housing Finance Limited (DHFL) - Aashray Deposit Plus: The fixed deposit scheme by DHFL offers value for money by providing high returns for longer tenure. With an investment amount of as low as Rs. 2000, an investor can secure this company fixed deposit. For maturity term of 14 months and 40 months, the FD offers an interest rate of 11%. Further, for flexible tenure of 12-84 months, the fixed deposit offers an interest rate equivalent to 10.75%. This FD scheme also guarantees additional earnings for senior citizens, armed forces personnels, widows and existing shareholders of DHFL. CARE AA+ rating for the deposit scheme reflects high quality and investment safety.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Greynium Information Technologies Pvt Ltd, its subsidiaries and associates. The author has made every effort to ensure accuracy of information provided; however, neither Greynium Information Technologies Pvt Ltd, its subsidiaries and associates, nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to buy, sell in precious metal products, commodities, securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.

GoodReturns.in