Company fixed deposits tend to offer you superior rates of interest, as compared to bank Fds. However, individuals do not like to invest in them, as they are worried of safety.
However, there are many company Fds that are very safe and are AAA rated. We have selected 7 such company deposits for our discerning investors, whose interest rates are slightly superior to bank interest rates.
Bajaj Finance offers you an interest rate of 8.05 per cent on a 3-5 year deposit. A 24-35 months deposit attracts a slightly lower interest rate of 8.0 per cent. All these are under the cumulative scheme.
This is a good one per cent, more than what most government banks like State Bank are offering on this fixed deposits.
The Fds are AAA rated and the deposits are safe given that the deposits are from a company of the Bajaj group. A good worthy investment of 3-5 years as yields will go higher due to the law of compounding. Being from the Bajaj stable the deposits are rather safe.
The Fixed Deposits of Shriram Transport offer you an interest rate of 8.25 per cent on a 5-year deposit. These deposits are again AAA rated and offer great security on the investment. The interest rate on the 2 year deposit is slightly less at 7.85 per cent. Like most other company deposits, Shriram Transport offers an extra interest rate of 0.25 per cent for senior citizens. Go for the shorter term duration.
Mahindra Finance offers an interest rate of 7.50 per cent across all tenures of 12, 24 and 36 months. The deposits are AAA rated, which means they are highly safe. On a longer tenure of 5 years, the interest rate offered is 7.55 per cent. The deposit interest rates from this NBFC has fallen a great deal in the last few years from near 10 per cent, in line with fall in interest rates across India. A safe deposit to bet on in the current trend of falling interest rates.
These deposits are backed by the government of Kerala and offer an interest rate of 8.50 per cent, across tenures of 1, 2 and 3 years. However, the 4 and 5 year tenure offer a slightly lower interest rate of 8.25 per cent. The deposits are extremely safe as they are backed by the government. The effective yield on the deposit reaches more than 10 per cent on a 5-year tenure. The three year deposit offers a yield of 9.64 per cent, which is not bad at all in a falling interest rate environment.
HDFC Fixed Deposits are highly safe deposits that are rated AAA. These deposits offer you an interest rates of 7.40 per cent across all of the tenures. This is marginally better than banks and the maximum that you can get. Go for these deposits if you do not have any other option.The deposits are very safe and the ratings have not changed for many years now.
DHFL Aashray Deposit Plus
This deposit is again AAA rated. The interest rate offered is 8 per cent on a 48 to 120 months tenure. This is probably the best in its class from a AAA rated deposit. The interest rates are a good one per cent over and above what banks offer. However, the only one company that still beats them in terms of interest rates is KTDFC. Also remember, that there would be a TDS on company deposits, if the interest amount crosses Rs 5,000. At one time deposits from DHFL offered an interest rate of as much as 10 per cent. Sad to see the extent to which interest rates have fallen.
Company deposits are not secure deposits. There is always an element of risk. The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates do not accept culpability for losses and/or damages arising based on information in this article.