Mahindra Finance

If you apply in the FDs of Mahindra Finance online, you get an interest rate of 8.75 per cent. These FDs have a tenure of 33 and 40 months.

The Fixed Deposits are rated AAA. A deposit of Rs 5,000, would mature at Rs 6,301 after 33 months and Rs 6,619 after 44 months. The effective yield in this case translates to as much as 9.71 per cent over this tenure. Remember, that the above is only for online investors and the interest rate reduces, if you do not use the online mode.

To apply online, you need to fill the form online and also upload your KYC documents online.

One can also apply for the slightly shorter period of 15 months, where the interest offered is 7.95 per cent or 27 months, where the interest is 8.50 per cent. Go for these deposits for higher yields and also safety.

Bajaj Finance

Bajaj Finance offers you a decent interest rate of 8.40 per cent on its 36-60 months deposit. Senior citizens are entitled to an extra 0.35 per cent interest. One can invest for a minimum amount of Rs 25,000.

A 24 to 35 month deposits fetches you an interest rate of 8.15 per cent, which not the best, while the 12-35 month deposit offers an interest rate of 7.60 per cent only.

The deposits are rated as FAAA by Crisil, which means one need not worry too much on the safety aspect of the deposits.

One can apply for the Bajaj Finance FD wither online, or through the 200 branches that the company has in various cities of the country.

KTDFC

This is a government of Kerala backed institution, where the interest rate offered is as high as 8.25 per cent for 1, 2 and 3 year deposit. What is interesting is that the interest is compounded every month, so your yield works to as high as 9.32 on a 3-year deposit and 9.80 per cent on a 5-year deposits.

Deposits repayment along with interest is guaranteed by the government of Kerala, hence the deposits can be considered as very safe.

A 4 and 5 year deposit, fetches a slightly lower interest rate of 8 per cent. Senior citizens are entitled to an extra 0.25 per cent on deposits. These deposits being backed by the Government of Kerala, can be considered as safe.

Suryoday Small Finance Bank

This is a small finance bank that was granted license by the RBI. The bank offers a decent interest rate of 8.75 per cent on its deposits for 24 months to 36 months. A 12 to 24 month deposit, fetches an interest rate of 8.50 per cent.

This probably is one of the highest interest rates being offered by a small finance bank. So far there has been no risk element involved with small finance bank and hence it is difficult to comment on safety of the deposits.

RBL Bank

RBL Bank offers an interest rate of 7.75 per cent on a 12 to 24 months deposit, with an effective yield of 7.98 per cent. A 24 to 36 months deposit fetches an interest rate of 7.50 per cent.

You can get higher interest rates at NBFCs as mentioned above.