If you have surplus money to invest for the short term, there are many attractive options. Here are a few of these which are safe and offer good yields. We are considering instruments that offer good returns for only 1 year and below.
A 1-year deposit at KTDFC offers an interest rate of 8.50 per cent. This is probably the best that it will get from company fixed deposits. This again is a very safe investment, given that KTDFC is a government of Kerala owned entity.
Company FDs are unsecure deposits and hence carry an element of risk. However, here the deposits are guaranteed by the government of Kerala. You may have to approach the company directly to open a deposit, as some of the brokers do not accept deposits of KTDFC. The short term duration offers excellent returns for investors.
2. Jana Small Finance Bank
Jana Small Finance Bank offers an interest rate of 8.5 per cent for deposits from 181 to 365 days. This is not bad at all. However, many individuals tend to ask: how safe are small finance banks? These are governed by the Reserve Bank of India and hence can be considered as relatively safe.
You can open an account online or the bank can call you back as well.
3. PNB Housing Finance
This is again a AAA rated deposit, which offers a return of 8.30 per cent over a period of 1 year. In fact, among company deposits, this is the best after KTDFC. Also, it is promoted by the government owned Punjab National Bank and hence can be considered as relatively safe
4. Mahindra Finance
Mahinda Finance offers an interest rate of 8.1 per cent on its fixed deposits and this is probably among the best for a short term duration and also safe, since they are AAA rated.
A deposit of Rs 5000, yields returns of Rs 5401 after a period of 1 year. Remember you need to pay a TDS if your interest income crosses Rs 5000. You can also apply online for these deposits, but they are not available with a tenure of 1 year, but, begins from 15-months.
A good short term investment bet.
5. Ujjivan Small Finance Bank
Like Jana Small Finance Bank, Ujjivan Small Finance Bank is also a small finance bank. These banks tend to cater to small and medium enterprises largely, though not completely. Ujjivan Small Finance Bank offers an interest rate of 8.30 per cent on its fixed deposits of 1 year. This is again decent and around the same interest rates that most others mentioned above offer
6. LIC Housing Finance
This is again a AAA rated security that offers an interest rate of 8.15 per cent on a 1 year deposit. This is good investment the for short term.
7. Bajaj Finance
Bajaj Finance offers an interest rate of 8 per cent for 1 year, which is amongst the lowest when compared to all of the others mentioned above. However, it is a AAA rated security that offers a decent return when compared to others.