HDFC Ltd is a decent choice if you want to place your money in AAA-rated fixed deposits (FDs). Interest rates on FDs maturing between 33 and 99 months have been increased by up to 25 basis points by the mortgage lender. One basis point (bps) is equivalent to 0.01 per cent. The rates are in effect from March 30. The annualised return on the 33-month fixed deposit has risen to 6.2 per cent. The annualised returns on the 66-month and 99-month fixed deposits will be 6.5 per cent and 6.65 per cent, respectively. In turn, senior citizens can earn a 25 basis point rate rise above the regular interest rate. Based on one's requirements, there are a variety of tenure options ranging from 12 to 120 months.
There are also different payment choices to select from, such as monthly, quarterly, half-yearly, or yearly, relying on the necessity. Investors can consider company deposits that have the top-rated while having their own risk level in mind. It is preferable to diversify your deposit across multiple high-rated deposits depending on your risk appetite needs i.e. short term or medium term. According to financial advisors, when investing in debt instruments, an investor must first look for security, then liquidity, and finally returns. It is also important to remember that these FDs should not be compared to bank FDs. When it comes to premature closure, these top-rated FDs don't offer much liquidity. And even corporate fixed deposits are not covered by DICGC insurance of Rs 5 lakhs if compared to bank FDs. Except for HDFC Ltd. Fixed Deposit, there are also some high rated corporate FDs that are currently providing higher returns than bank FDs and small savings schemes. For instance, Hawkins Cooker FD Scheme, Shriram City Union Finance, Shriram Transport Finance, HUDCO and so on are currently providing interest rates ranging from 8.5 to 9%, 7.25 to 8.09%, 7,25 to 8.90%, and 7 to 7.5%. To know more about top-rated company fixed deposits click here.
Meanwhile, the Centre has revoked its move to cut rates on small savings schemes, which was announced last evening. Finance Minister Nirmala Sitharaman made the announcement on Twitter on April 1. She stated that "Interest rates of small savings schemes of GoI shall continue to be at the rates which existed in the last quarter of 2020-2021, ie, rates that prevailed as of March 2021."