Few years ago, it was easy to get more than 9.25 per cent interest in a public banks. Today, if you get even 7.60 per cent, it is a good deal at a public sector bank. However, there are some pockets ( select FDS) that still give good returns. Here they are.
These deposits are not AAA rated, but, are backed by the government of Kerala for a sum of Rs 2,000 crores.
The interest rate is 8.50 per cent for 1, 2 and 3 years.
You get a yield of up to 9.64 per cent on a three year deposit and more than 10 per cent yield on a 5-year cumulative fixed deposit. The interest rate is 8.50 per cent from 1 to 3 years and 8.25 per cent on the 4th and the 5th year.
Dewan Housing Finance
The deposits of Dewan Housing are also AAA rated. The company is offering an interest rate of 8.75 per cent on deposits of 2,3,4 and 5 years.
The yield on a 5 year deposit works to as high as 10.68 per cent, because of compounding. Senior citizens are entitled to an interest rate of 9 per cent.
Shriram Transport Finance Company
Shriram Transport Company is offering an interest rate of 8.75 per cent on 4 and 5 year deposits.
The yield on a 5-year deposit works to a staggering 10.62 per cent. This is a well managed AAA rated company.
Mahindra Finance again is a AAA rated fixed deposit. The interest rate is 8.45 per cent on 1,2,3,4 and 5 year deposits.
PNB Housing Finance
This is a subsidiary of the government owned Punjab National Bank and hence the deposits are safe. A 36, 48 and 60 months deposit gives you an interest rate of 8.25 per cent. The yield on a 5-year deposit is 10.15 per cent.
These are again highly rated AAA deposits. Bajaj Finserv offers an interest rate of 8.55 per cent on 12 to 17 months deposit and an interest rate of 8.65 per cent on its 18 to 60 months deposits. The yield is much higher due to compounding.
HDFC is a solid institution and the deposits are rated AAA.
A 15 months deposit fetches you an interest rate of 7.85 per cent, a 22 month deposit at 8.90 per cent and 30 months at 7.85 per cent.
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Company fixed deposits are not secure deposits and hence are risky. Investors are advised to seek professional help before investing.