Company fixed deposits tend to offer slightly higher interest rates over bank fixed deposits and government schemes, like post office, which is why they are preferred. However, it's important to remember that company fixed deposits are not secure and one needs to invest in highly rated deposits. Also, they are very much taxable like bank fixed deposits. Here are 5 company fixed deposit ideas that could offer decent returns.
Highly secure deposit
A three year fixed deposit at TN Power fetches a monthly interest of 10 per cent, whereas the company offers 10.08 per cent on a quarterly interest payment basis. Since the company is a wholly owned undertaking of the government of Tamil Nadu the deposits are relatively safe. Bank deposits are currently not offering such high rates.
High returns with very high safety
KTDFC could be the pick of the lot when it comes to safety and returns. A three year deposit at KTDFC fetches an interest rate of as much as 10.25 per cent, if the amount is less than Rs 25 lakhs and 10.50 per cent, if the amount is more than Rs 25 lakhs. KTDFC is a government of Kerala undertaking and hence the deposits are relatively safe.
A subsidiary of HDFC
Gruh Finance offers an interest rate of as much as 9.5 per cent on a 3 year cumulative deposit. The monthly income plan offers an interest rate of 9 per cent for three years, while the quarterly income offers an interest rate of 9.25 per cent for three years. Gruh Finance is a subsidiary of HDFC and hence the deposit is rather secure.
Cumulative scheme a good option
A 3 year fixed deposit of Shriram Transport fetches an interest rate of 10.25 per cent for a monthly income scheme. The cumulative scheme fetches a yield of 11.94 per cent on a three year deposit. The FD's are rated "FAA+Stable" by CRISIL.
Reasonably good returns
A cumulative fixed deposit of PNB Housing Finance is presently offering a yield of 10.08 per cent on a two year deposit. The yield goes to as high as 11.08 per cent on a 84 month deposit. Being a subsidiary of Punjab National Bank, a government of India bank, the deposits offer a high level of safety.