Interest rates have fallen a great deal and there are chances that we might see a further dip in interest rates. Here are select company FDs that are the best for long term investors. These deposits tend to give you a good one per cent over and above the interest rates offered by banks. Take a look.
Bajaj Finance offers you an interest rate of 8.05 per cent on a fixed deposits of 3 years. The interest rate drops to 8 per cent for two years and falls even further to 7.80 per cent for 1 year. The deposits are AAA rated and thus one of the best in the current low interest rate regime.
This government of Kerala owned entity offers you an interest rate of 8.50 per cent for three years and is the best bet company fixed deposit in terms of interest rate. Though there are no ratings on the FDs, it is a government of Kerala owned entity and hence the deposits are very safe. The one and two year deposits also offer similar interest rate of 8.50 per cent. Senior citizens are entitled to an extra 0.25 per cent.
DHFL Ashray Deposit Plus
The deposits from DHFL are again AAA rated by select rating institutions. The company offers an interest rate of 8.00 per cent on its 4 and 5 year deposit. The three year tenure fetches you an interest rate of 7.85 per cent, while one year fetches you 7.80 per cent. Again, not a bad deal when compared to banks.
Best Company Fixed Deposits To Invest In
These company FDs offer you an interest rate of 8.25 per cent on 5 years deposits and should be the best after KTDFC. The deposits are AAA rated, though one must note that company deposits are not the safest debt instruments around. The 3-year deposit gives you an interest rate of 8.15 per cent.
Gruh Finance is a subsidiary of HDFC. The 2, 3, 4 and 5 year deposit gives an interest rate of 7.50 per cent. This is still marginally better than what most banks in the country are offering. Not a bad deal in the current environment of low interest rates.
HDFC deposits are again AAA rated and are relatively safe. The institution offers an interest rate of 7.40 per cent across all its tenures. You can compare from the above and then make a choice on the one that is best for you.in terms of interest rates, HDFC may not be the best, but is a relatively secure FD.
Mahindra and Mahindra Financial Services
The FDs from this company is AAA rated like most others mentioned above. The interest rates are 7.50 per cent for one and two years tenure and is 7.55 per cent for 3, 4 and 5 years. Still not a bad bet in the current situation.
Taxation on company FDS
These FDs attract a TDS if the interest income crosses Rs 5,000. Banks on the other hand attract a TDS, if the interest rate crosses Rs 10,000. The interest on company FDs, however, give them an edge over bank deposits.