Bajaj Finserv

As mentioned, a 3-5 year FD at SBI gives you an interest rate of just 7%. Bajaj Finserv, a AAA rated finance company gives an interest rate of 8.65 per cent for 36 months deposit.

Promoted by the Bajaj Auto group, chances of a default on payment of principal and interest is virtually zero.

DHFL Ashray

These are again AAA rated fixed deposits. If you are investing amounts under Rs 50 lakh, you can get an interest rate of 8.90 per cent for deposits of 40-months. The interest rates are much higher than any than any bank deposit. If you have sums in excess of Rs 50 lakhs, you would get an interest rate of 9.15 per cent.

Mahindra Finance

Mahindra Finance is offering an interest rate of 8.45 per cent for individuals, other than senior citizens for 36 months tenure. Senior citizens are entitled to an extra 0.25 per cent.

This is not the best company deposit interest rates around, but can be considered as pretty decent when compared to bank deposits.

LIC Housing

LIC Housing Finance offers an interest rate of 8.40 per cent on a 3-year deposit. Again, this is a AAA rated deposit and senior citizens are entitled to an extra 0.25 per cent interest rate, depending on the size of the deposit.

Shriram Transport Finance

Shriram City Union Finance is FAAA rated by Crisil. The company is offering an interest rate of 8.50 per cent on its deposits for 2 and 3 years.

The company is among the top commercial vehicle financiers in the country.

KTDFC

Well, this not AAA rated by any rating agency, but the deposits are backed by the government of Kerala, which is why it is a solid deposit. The interest rate at 8.5 per cent for a 3-year deposit, means it is offering 20% more returns than SBI Bank deposit.

Good for a state government owned entiity.

Tax

There is a 10 per cent TDS on the interest income in the case of company deposits, if the interest crosses above Rs 5000 annually.

The comparison mentioned in the slides is not based on compounding.