Interest rates have started moving higher and investors now looking at the best AAA rated deposits to invest in, have something to cheer. Rating agencies like Crisil, ICRA and CARE offer ratings to the fixed deposits of companies. This is very necessary since fixed deposits of companies are not secure deposits and in the past there have been numerous companies that have defaulted on payment of principle and interest amounts. Here are seven highly rated company fixed deposits in India, which offer you interest rates upto 8.75 per cent per annum with yields of near 10 per cent. Invest in these for a period of 2-3 years.
Mahindra and Mahindra Finance
The Mahindra and Mahindra Finance Fixed Deposit have a Crisil rating of 'FAAA'. Among the AAA rated deposits, this Mahindra group backed NBFC, offers an interest rate of 9 per cent on a 33 and 40 month deposit. This is the highest from a AAA rated company. This is for online investors only.
The yield on these deposits can go as high as 10.01 over the 40 month period. The deposits are safe as they are AAA rated and are also backed by one of India's renowned business houses. The interest rate of 9 per cent is applicable only for those making their bookings online.
The Fixed Deposits of Bajaj Finserv are rated FAAA by Crisil, offering the highest possible safety for timely payment of interest and principal amount. The deposits from this company offer the best rates, when compared to other NBFCs mentioned above.
Bajaj Finance Fixed Deposits provide a good interest rate of 8.75%, with a reliable interest flow that helps you plan and manage your expenses easily. Stable returns make Bajaj Finance FDs one of the best and compares only to the likes of Mahindra Finance when it comes to interest rates.
The interest rate of 8.75 per cent is for 36-60 months.
The KTDFC deposit, though not AAA rated, offers you an interest rate of 8.50 per cent per annum.
We have mentioned this deposit, merely because it is a government of Kerala backed company, which means the deposits are safe since the government of Kerala is backing these deposits.
A 1, 2 and 3 year deposit attracts an interest rate of 8.50 per cent. Senior citizens are entitled to an extra 8.75 per cent interest rate. Deposits of upto Rs 4,500 crores are guaranteed by the government of Kerala.
The yields on these deposits can go as high as 10 per cent over 5 years.
The PNB Housing deposit offers high safety assurance through a FAAA rating by CRISIL. These deposits offer interest rates, which are very competitive when compared to top private sector companies.
In fact, the interest rate on these deposits are placed at 8.45 per cent for a 60-71 month deposit, while a 48-59 month deposit fetches one an interest rate of 8.40 per cent. The company is promoted by Punjab National Bank, which is a government of India owned enterprise. The interest rates are also attractive when compared to peers and hence not the most lucrative option around.
HDFC Fixed Deposit
The Fixed Deposits from HDFC come with the Highest safety of a AAA rating from both CRISIL and ICRA and have been so for the last 19 consecutive years.
The deposits offer an interest rate of 8.03 per cent on a cumulative deposit of 15 months. A 44-month deposit fetches an interest rate of 8.14 per cent.
This interest rate is not better than most of the deposits mentioned above. Go for these AAA rated deposits, if you have a long term perspective.
HDFC is India's largest housing finance company and the deposits are very safe.
Gruh Finance is again rated FAAA by CRISIL. This company does not offer the best interest rates and the monthly income FD fetches an interest rate of a maximum of 7.50 per cent for all deposits of various tenures, under the cumulative scheme.
In Gruh Finance, HDFC holds approximately sixty per cent. Gruh Finance is a housing finance company which offers loans to individuals for purchasing or construction of new houses.
It also gives loans for the renovation of dwelling units. There is a segment in gruh finance called as the self-employed segment. In that segment, gruh finance gives loans even there are no formal income proofs. Gruh has a wide range of network with nearly 136 offices across India.
So, if you are looking to invest in AAA rated FDs with high interest rates, Gruh Finance FD is yet another option for you.
Look at small finance banks
Apart from the company AAA deposits, one can also look at small finance banks. For example, Jana Bank, which is a small finance bank offers an interest rate of 9 per cent on its 3-years deposit.
Small Finance Banks have recently been given license by the Reserve Bank of India. We really cannot comment on the safety of these deposits as small finance banks are relatively new. However, as mentioned earlier they are regulated by the Reserve Bank of India. Ujjivan Small Finance Bank, is another small finance bank, where the interest rates are pretty decent. In fact, this is the only category of investment, where the interest rates are the highest.
What are AAA rated deposits?
Before knowing about AAA rated deposits, we need to know about what is a fixed deposit. An investment where money is placed in a bank for a fixed period to earn interest. The main disadvantage of the FD is the risk of losing your investment. It is always very important to check the rating before you invest.
CRISIL is a global analytical company which provides ratings and research, risk policy advisory services, etc. It plays a significant role in assisting banks and borrowers like fills the gap between banks and borrowers. The other rating agencies are ICRA and CARE.
CRISIL ratings are benchmark for trade market, and the following ratings are for a fixed deposits
CRISIL-D: this rating is by default.
CRISIL- C: this rating is high risk.
CRISIL- B: this rating is little safety.
CRIS-A: this rating is adequate security.
CRISIL-AA: this rating is high safety.
CRISIL-AAA: this rating is the highest safety.
Disclaimer: Company deposits can be risky and in the past there have been cases of default. This article is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.