Fixed deposits interest rates have dipped over the last one year, as inflation has headed lower and banks have cut interest rates. We have given here below a list of deposits that could offer good returns to the depositor. We have kept in mind safety and returns, when short listing the below.
DHFL Fixed Deposits
It's important to begin with a caveat. Company fixed deposits are risky when compared to bank fixed deposits, as there is no assurance of re-payment of principal and interest and companies have defaulted in the past.
Having said that there could be little worry with regards to DHFL as the deposits are rated AAA (FD) by CARE and BWR FAAA by Brickworks.
The deposits come with an interest rate as follows for under Rs 50 lakh and for 24-36 months.
|DHFL Fixed Deposit Interest Rates|
|14 months||24-26 months||18 months||40 months|
|Senior Citizens, Widows, Armed Force Personnel, DHFL Home Loan/SME Loan/Mortgage Loan customers.||9.25%||9.25%||9.35%|
There are a host of choices, women depositors would receive 9.1%, which is excellent, under the present circumstances. There is also free insurance cover of Rs 1 lakh to individual depositors. Most of the features in the deposit, make it a superb holding for the medium term.
Other features include ECS and timely servicing of the FDs.
RBL Bank Fixed Deposits
RBL Bank was earlier known as Ratnakar Bank and is in the process of listing its shares on the bourses shortly. The deposits are the best when it comes to interest rates, when compared to other bank peers. Take a look at the interest rate on these deposits.
|12-24 months||24-36 months||36-60 months|
|Effective annualized yield yield||8.77%||9.31%||9.04%|
Senior citizens are entitled to an extra 0.50 per cent on these deposits, taking the yield to a staggering 10 per cent. The bank has the facility of sending individuals across to your office to collect the fixed deposits. This makes your job extremely easy. All other facilities are at par with most of the banking peers.
Bajaj Finance Fixed Deposits
|Senior citizens and Bajaj group employees||9.0%||9.10%||9.12%|
Bajaj Finance is yet another highly safe deposits from the house of Bajaj. The interest rates are pretty decent and you can get yields in excess of 9%. Good to hold these deposits for the slightly longer term of 2-3 years.
Why it is a good time to bet on fixed deposits?
We believe that the Reserve Bank of India would cut repo rates in its policy meeting in April. This might push interest rates even lower. Hence, it would be a good idea to invest in March or else by May, you could see interest having dropped even further by 0.25 basis points. Some of the deposits mentioned above offer a decent yield and are good from the medium term perspective.
However, one should always look at the ratings in a company deposits, before investing in the same. There are also other FDs like KTDFC, which are very secure, but since the interest rate is slightly lower, we have refrained from highlighting them.