Understanding Company FDs:
Company or corporate FDs or fixed deposits are the safer and profitable investment means because they yield much better interest rates relatively compared to the banks. They are the viable sources of regular and better income.
BENEFITS of Company FDs
a) Get much higher returns
Company FDs provide much higher rates of interest compared to the banks.
The TDS payable is much lesser compared to other investing banks or shares and if interest is up to Rs 5000 per annum, TDS payable is nil.
b) Get regular and better interest incomes
You can be assured of a better means of regular income in this, for example, yearly, quarterly or monthly income.
c) Much more flexible tenure
There are much flexible tenures that you can choose in this that ranges from 6 months upto 7 years.
Here are some of the best company FDs to invest in
1. Bajaj Finance
Bajaj Finance offers a hefty interest rate of 7.85% on various tenures. This is more than what most government banks offer on fixed deposits and therefore is a much better investment option for heavier returns and income for you. Being a Bajaj group company, they provide rather safe and AAA rated deposits that turn into good and worthy investments. They provide a high rate of 0.35% interest to senior citizens.
2. Shriram Transport
The Shriram Transport FDs offer a high interest rate of 7.72% to senior citizens that can soar as high as 8.19% on 5-year deposits. The interest rates offered to others are 7.49% for one year, soaring upto 7.92% on 5-year deposits. AAA rated again and offering great security on investment, this is again a great source of income.
3. Mahindra Finance
Offfering high interest rates of 7.75% for 15, 20 and 27 month deposits, soaring upto 7.80% for 33 to 40 month deposits, Mahindra Finance offers AAA rated deposits that are highly safe. Hence, again a great and stable source of income for discerning investors.
Backed by the Kerala government, they offer interest rates of 8.25% across 1,2 and 3-year tenures and 8% on 4 and 5 year tenures. Being backed by the Kerala government, these are extremely safe deposits with great and effective yields on them reaching to more than 10% on 5-year tenures for the senior citizens and 9.32% for 3-year tenures.
HDFC FDs are AAA rated and highly safe deposits offering high interest rates of 7.33% on 33 and 66-month tenures, which is marginally much better than banks, providing the best maximum returns. The deposits have some of the best ratings and provide maximum security for your investments, and are therefore a great means of stable and good income.
6. DHFL Aashray Deposit Plus
AAA rated again and probably one of the best in its class, these deposits offer high interest rates of 8% on 48 to 120-month tenures. These interest rates are much better than the interest rates that banks offer and therefore are again good and secure sources of income.
Company and corporate fixed deposits are great sources of income that are not only safe, stable and secure but are also the investment options that offer maximum returns with some of the best interest rates. Investing in these is a much better idea than investing in bank fixed deposits as the interest rates provided by banks are much lesser. But remember, that there is a TDS payable on company deposits, if your interest amount reaches above Rs 5,000.