Company fixed deposits tend to offer you superior rates of interest, as compared to bank Fds. However, individuals do not like to invest in them, as they are worried of safety.
However, there are many company Fds that are very safe and are AAA rated. We have selected 7 such company deposits for our discerning investors.
Bajaj Finance offers you an interest rate of 8.05 per cent on a 3-5 year deposit. An 24-35 months deposit attracts a slightly lower interest rate of 8.0 per cent. All these are under the cumulative scheme.
This is a good one per cent, more than what most government banks like State Bank are offering on this fixed deposits.
The Fds are AAA rated and the deposits are safe given that the deposits are from a company of the Bajaj group. A good worthy investment of 3-5 years as yields will go higher due to the law of compounding.
The Fixed Deposits of Shriram Transport offer you an interest rate of 7.95 per cent on a 5-year deposit. The cumulative yield on this deposit period works to 9.72 per cent, based on compounding. A 48-month deposit gives you an interest rate of 7.86 per cent and a yield of 9.20 per cent. A 36-month deposit gives you an interest rate of 7.72 per cent and a yield of 8.86 per cent. This is again way better than bank Fds and is pretty safe as it is a part of the Shriram Transport group.
Mahindra Finance offers an interest rate of 7.50 per cent across all tenures of 12, 24 and 36 months. The deposits are AAA rated, which means they are highly safe. On a longer tenure of 5 years, your yield goes to as high as 8.78 per cent. The deposit interest rates from this NBFC has fallen a great deal in the last few years from near 10 per cent, in line with fall in interest rates across India.
These deposits are backed by the government of Kerala and offer an interest rate of 8.45 per cent, across all tenures. The deposits are extremely safe as they are backed by the government. The effective yield on the deposit reaches more than 10 per cent on a 5-year tenure.
HDFC Fixed Deposits are highly safe deposits that are rated AAA. These deposits offer you an interest rates between 7.50 per cent and 7.55 per cent, which is marginally better than banks and the maximum that you can get. Go for these deposits if you do not have any other option.
DHFL Aashray Deposit Plus
This deposit is again AAA rated. The interest rate offered is 8 per cent on a 48 to 120 months tenure. This is probably the best in its class from a AAA rated deposit. The interest rates are a good one per cent over and above what banks offer. However, the only one company that still beats them in terms of interest rates is KTDFC. Also remember, that there would be a TDS on company deposits, if the interest amount crosses Rs 5,000.
Company deposits are not secure deposits. There is always an element of risk. The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates do not accept culpability for losses and/or damages arising based on information in this article.