It's a reasonably good time for folks looking at higher interest rates on FDs, as compared to the last few years, when interest rates were agonizingly low. Investment options are limited at the moment, given that shares are at peak levels, and gold has not gone anywhere in the last few years.
Here are a few FD ideas with good interest rates.
Mahindra Finance FDs
Banks are at the moment offering you an interest rate of just about 7 to 7.5 per cent. If you apply in the Mahindra Finance FDs online, the interest rate offered is 8.75 per cent over 33 and 40 months.
In fact, the yield over the 40 month deposit translates to as high as 9.71 per cent. The deposits are rated as AAA by rating agencies and are largely secure. It is important to remember that 8.75 per cent interest is only for those applying online. Otherwise you have to go for the 27 month deposit, which fetches an interest rate of 8.50 per cent.
This is a good deposit to bet on.
Bajaj Finance offers an interest rate of 8.40 per cent on 36-60 months deposit. Again, this is much better than the rates offered by banks in the country.
The deposits are AAA rated and senior citizens are offered an extra 0.35 per cent interest rate. TDS on company deposits are applicable from levels of Rs 5,000. Hence, if you are not liable to tax, you can submit form 15g or form 15h, as the case maybe.
The one advise we would like to give investors is not to deposit amounts for a larger duration, given that interest rates in the economy might increase. Go for the 1 year deposit, given that we may see interest rates rise again in the short to medium term.
Kerala Transport Development Finance Corporation, is a government of Kerala backed institution.
The deposits are hence very safe. The interest rates on the 1, 2 and 3 year deposit of this institution is 8.25 per cent, which is pretty good. Once again, we suggest that investors look for the shorter term duration.
While the deposits here are not rated, they can be considered as safe, given the fact that this is backed by a state government. However, you may need to courier the forms and do a NEFT transfer to open deposits.
A very safe deposit to consider.