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3 FDs You Must Invest For High Interest Rates
Finally, after a four year lull, we are seeing interest rates rising. It is not possible to get decent interest rates and even higher yields, after a long time. Here are a few high quality Fixed Deposits, that offer you high interest rates and yields.
Mahindra Finance: A high interest rate of 8.75 per cent
Mahindra Finance offers an interest rate of as high as 8.75 per cent for its online deposits. This rate of interest is applicable on 33 and 40 month deposits. This is the best interest when compared to banks and most NBFCs in the country. The yields on these deposits can be as high as 9.71 per cent, which is very good. Senior citizens are entitled to an extra 0.10 per cent on the FDs.
Also remember that the deposits are rated AAA, which means there is very little possibility if default on timely payment of interest and principal amount.
Bajaj Finance FDs
Bajaj Finance too has hiked its interest rates recently. The company offers an interest rate of 8.40 per cent on 36-60 months tenure on cumulative deposits. Senior citizens are entitled to an extra 0.35 per cent, which takes the total interest rate to 8.75 per cent for these set of investors.
Again, rating agencies have rated these deposits as "AAA", which means they are extremely safe. Coming from the Bajaj stable we see very little possibility of a default.
One can choose from from Cumulative FDs (where interest is payable at the time of maturity) or Non-cumulative FDs (where interest may be payable at monthly, quarterly, half-yearly or annual basis).
DHFL FDs
DHFL too has hiked its interest rates lately. The company is offering an interest rate of 8.50 per cent over 40 to 60 months tenure. There is also a double my money deposits, where money doubles in 103 months. There is also a special deposit for trusts and institutions where the interest rate offered is 7.75 per cent.
This deposit again is a highly rated AAA rated deposit and is safe, though the interest rates is lower than compared to Mahindra Finance FDs.
One must remember that fixed deposit interest rates in India are subject to a TDS. For example, these deposits attract a TDS of 10 per cent, if the interest payable is more than Rs 5,000 in a given financial year. In the case of banks, TDS is applicable when the deposits are above Rs 10,000.
