If you are looking at fixed deposits that offer higher interest rates then post office schemes and also bank deposits, then there are two company fixed deposits that you should not ignore. The first is by Mahindra Finance and the second is being issued by Shriram Transport Finance.
The Mahindra Finance fixed deposit offers you an interest rate of 10 per cent for 24 months, which means the cumulative yield works to around 10.50 per cent per annum. The 36 months deposit offers interest rates of 10.25 per cent and the yield here works to 11.34 per cent per annum.
It's important to note that company fixed deposits are not secure. However, Mahindra Finance has a strong pedigree, which is why it can be recommended for investment. Also, the rates offered are far higher then any bank fixed deposit or post office scheme. The Mahindra Finance fixed deposit scheme is given a Crisil rating FAAA which indicates a high level of safety
Shriram Transport Finance
Shriram Transport Finance is India's largest player in commercial vehicle finance. The company is one of the largest asset financing non banking finance companies in India. The company's fixed deposits offers an interest rate of 10.75 per cent for three years.
The company is offering a 10.75 per cent interest rate for three years. This is again like Mahindra Finance way beyond the rates offered by banks and post office.
Shriram Transport Finance like Mahindra Finance has a strong pedigree, which makes the fixed deposit relatively secure. In fact, Shriram Transport Finance is now one of the contenders for a banking license.
The above two deposits should be considered. Also read the merits and de-merits of fixed deposits here: /classroom/2012/04/company-fixed-deposits-investments-its-merits-demerits.html