2018 has been a year where we have gradually seen interest rates rising. In fact, there has also been a liquidity squeeze, which has pushed interest rates higher. It is today possible to get decent interest rates at around 8.5 to 9 per cent in quality fixed deposits. Take a look at some of such FDs.
Mahindra Finance Dhanvruddhi Scheme
Fixed deposits under this scheme offer an interest rate of 9 per cent for 33 per cent and 40 months. These Fixed Deposit interest rates are for online investors through the Mahindra Finance website.
The yield on the 33 month deposit is as high as 10.01 per cent. The deposits are safe and are rated 'FAAA' by Crisil. Probably this is one of the best interest rates around, when compared to FDs of other NBFCs and banks. The company also has a 27 month deposit, which offers you an interest rate of around 8.60 per cent. There are options under both for the cumulative and non cumulative. Mahindra group employees are entitled to an extra 0.35 per cent.
Bajaj Finance Fixed Deposits provide a lucrative interest rate of 8.75%, which can go up to 9.10% (for senior citizens). Investors have an option to choose tenors between 12 and 60 months and should opt based on maximizing their own yields.
The 36-60 month deposits offer an interest rate of 8.75% per annum. For senior citizens the interest rate goes to as high as 9.15 per cent. It is important to remember that longer term tenures are not favourable in a rising interest rate regime. So, you need to decide accordingly.
Again, like Mahindra Finance these deposits are AAA rated and hence safety is very high.
This deposit is a good investment, because of three reasons. The first is that this is a government of Kerala owned enterprise and hence the KTDFC deposits are very safe. Secondly, under the cumulative scheme the compounding is done every month and hence the yields are very high.
Lastly, with an interest rate of 8.50 per cent per annum, the deposits can be considered a good investment with yields that can touch 10 per cent over 5 years.
If you are looking at bank deposits, which are actually very liquid then you can opt for the IndusInd Bank Fixed deposits. The best tenure that you should look at is the 1 Years to 1 Years 2 Months tenure, where the interest rate is as high as 8 per cent.
However, when you compare with NBFC fixed deposits, they are still low. You can opt for the other tenures as well but, the interest rates are below 8 per cent.
A few things to remember
One should remember that all fixed deposits are subject to TDS, where the interest amount exceeds the mandated amount. Investors should also remember to submit their 15g or 15h form as the case maybe to avoid TDS.
Also, it is always a good idea to compared fixed deposits before investing. One needs to be careful and just compare. If you are an individual who already is having taxable income, it is better to put the FD in the name of your spouse.