Here are a few company fixed deposits that beat bank deposits in terms of interest rates. Some of these are highly secured and come with a strong pedigree. However, one should remember that company fixed deposits are not very secure deposits and hence it's always best to seek professional advise before investing. Interest of over Rs 5000, will be subject to TDS. Read how to avoid TDS on fixed deposits here
The best in the category
The pick of the lot in terms of security and returns of all the deposits we have mentioned is Kerala Transport Development Finance Corporation (KTDFC). The deposits are guaranteed by the Government of Kerala making them extremely secure. Moreover, the interest rate at 10.25 per cent for one and two year deposits are extremely attractive. For deposits above Rs 25 lakh, the interest rate has been fixed at Rs 10.50 per cent.
Good scope for returns
The fixed deposit from Dewan Housing Finance Ltd offers an interest rate of 10.25 per cent on a 14-month cumulative deposit. Under the cumulative scheme a 40-month deposit fetches an interest rate of 10.50 per cent for individuals. Interest is compounded half yearly under the schemes.
GRUH Finance is a subsidiary of HDFC and hence the deposits are very secure. The 36-59 month cumulative scheme under GRUH Finance fetches an interest rate of 9.5 per cent for individuals. All other tenures fetch an interest rate of between 9 and 9.25 per cent.
Stable rating from CRISIL
A cumulative deposit at Shriram Transport offers an interest rate yield of of 10.23 per cent for a 24 month deposit and 11.94 per cent for a 36-month deposit. Crisil has rated the Fixed Deposits of the company as FAA+ indicating stable rating by CRISIL.