Interest rates are likely to fall in the coming days, as inflation continues to remain weak. The Monetary Policy Committee, which is scheduled to meet in June, may cut interest rates going forward. Here are a few best safe FDs with high interest rates that you may consider for investment.
Kerala Transport Development Finance Corporation
The government of Kerala owned Kerala Transport Development Finance Corporation offers an interest rate of 8.50 per cent on its 1, 2 and 3-year deposits.
This is very good considering the safety of the instrument, as Kerala Transport Development Finance Corporation is a government of Kerala owned entity. Company FDs are unsecured deposits and hence carry an element of risk.
However, here the deposits are backed by the government of Kerala, so you actually do not even need a rating. The only drawback is that you may have to approach the company directly to open a deposit, as some of the brokers do not accept deposits of Kerala Transport Development Finance Corporation.
Jana Small Finance Bank
This is a small finance bank that is regulated by the RBI. The bank offers an interest rate of 9 per cent on its 3-year deposit. Senior Citizens are entitled to an interest rate of 9.6 per cent. This is an excellent interest rate considering that yields can jump to 10.20 per cent over the period of the tenure.
You seldom get such high interest rates on bank deposits these days. As mentioned earlier, small finance banks are governed by the Reserve Bank of India and hence they can be considered as pretty safe.
Go for these deposits for a slightly longer tenure given that interest rates in the economy are slated to fall.
The deposits are very safe and offer a very high interest rate as well. Mahindra Finance is giving an interest rate of 9 per cent on its fixed deposits and this is probably among the best for a medium-term duration and also safe since they are AAA rated.
The above interest rates are only for online investors, who opt for either 33 months or 36-month deposits.
There is a tax deducted at source for interest income which is above Rs 5000. You can also apply online for these deposits, but they are not available with a tenure of 1 year, but, begins from 15-months. A good medium-term investment bet on Fds.
LIC Housing Finance
LIC Housing Finance offers an interest rate of 8.25 per cent on a 3-year deposits and Rs 8.30 per cent on a 5-year deposit. This may not be the highest, but, the deposits are relatively safe.
Again Crisil has rated these deposits with a AAA rated deposit.
Shriram City Union
Shriram City Union is a Crisil FAAA + rated and ICRA MAA+ rated. The 3-year deposits at the company offers you an interest rate of 9 per cent. The 4-year deposit too offers an interest rate of 9 per cent. Senior citizens are entitled to an extra 0.25 per cent interest rate.
The deposits are well rated and hence can be considered as relatively safe.