7 High Rated Companies Offering more than Bank Fixed Deposits – December 2018

Most banks are offering interests in the range of 6% to 8% on their fixed deposits. However some best rated companies and institutions are offering interest rates higher than banks. Below are the details of 7 companies which have high credit rating and offering interest rate more than banks on their fixed deposit schemes.

SBI is offering 6.65% to 6.85% for 1 to 10 years fixed deposits while ICICI Bank is offering 7.00% to 7.50%

Also Read: How SWP in Debt Funds generate higher returns than FD

1. DHFL Aashray Deposit Plus

DHFL is one of India’s leading housing finance companies.

Credit Rating: “AAA” by CARE and “FAAA” by BWR

Also Read: What does Credit Rating Mean?

Salient Features:

  • Privilege customer category include Senior Citizens, Widows, Defense personnel, DHFL Home/SME/Mortgage Loan customers and get 0.40% additional interest rate
  • Additional interest of 0.15% where, deposit is renewed on or before the maturity date
  • Minimum Deposit Amount: Rs 5,000 and multiples of Rs 1,000 thereafter
  • Loan up to 75% of the FD Principal and accrued interest is available
  • Annual compounding for Cumulative Schemes

Interest Rates:

DHFL Aashray Deposit – Interest on Fixed Deposit

DHFL Aashray Deposit – Interest on Fixed Deposit

Also Read: 25 Tax Free Incomes & Investments in India

DHFL Wealth2Health Deposit:

This fixed deposit comes with Wealth2Health Deposit Card. This card is linked to the underlying Fixed Deposits and can be used by the customer to get access to a host of benefits, namely:

  1. Cashless access to empanelled network of hospitals
  2. Discounts on hospitalization
  3. Discounts on medical/diagnostic tests, up to 25%
  4. Access to a doctor 24/7 over phone
  5. Free Second Opinion Service from a panel of specialist doctors
  6. Advice on which hospital to choose for specific medical requirements
DHFL Aashray Deposit Plus – Wealth2Health – Interest Rates

DHFL Aashray Deposit Plus – Wealth2Health – Interest Rates

2. Bajaj Finance Ltd Fixed Deposit

Bajaj Finance Ltd is a NBFC (non-banking finance company) dealing in all kinds of loans like Personal, Two/Three wheeler loans, car loans etc.

Credit Rating: “FAAA” By CRISIL and “MAAA” By ICRA

Salient Features:

  • Additional 0.35% interest for Senior citizens
  • Additional 0.25% interest for Bajaj group employees and existing customers for deposits up to Rs.1 Crore
  • Renewal: 0.25% over and above the rate of interest at which the deposit is booked
  • Can access FDs online through their customer portal

Interest Rates:

Bajaj Finance Ltd – Interest on Fixed Deposit

Bajaj Finance Ltd – Interest on Fixed Deposit

Also Read: How to Fill Form 15G and 15H?

3. KTDFC Ltd. Fixed Deposit

KTDFC (Kerala Transport Development Finance Corporation Ltd) is NBFC wholly owned by Government of Kerala and deals in Personal and Vehicle Loans among other things.

Credit Rating: KTDFC Fixed Deposits are fully guaranteed by Government of Kerala

Interest Rates:

KTDFC Ltd - Interest on Fixed Deposit - October 2018

KTDFC Ltd – Interest on Fixed Deposit

Also Read: 13 Investments to Generate Regular Income

4. Mahindra and Mahindra Financial Services Ltd FD

Mahindra and Mahindra Financial Services is leading NBFC with focus on rural areas and is top tractor financier in India.

Credit Rating: ‘FAAA’ by CRISIL

Salient Features:

  • 0.25% additional rate for senior citizens.
  • 0.35% additional interest for all Mahindra group company employees and Employees Relatives
  • Dhanvruddhi Cumulative Scheme is new scheme which offers higher interest rate (additional 0.25%) and can only be invested through Mahindra and Mahindra Financial Services website

Interest Rates:

Mahindra and Mahindra Financial Services Ltd - Samruddhi - Interest on Fixed Deposit

Mahindra and Mahindra Financial Services Ltd – Samruddhi – Interest on Fixed Deposit

Mahindra and Mahindra Financial Services Ltd - Dhanvruddhi - Interest on Fixed Deposit

Mahindra and Mahindra Financial Services Ltd – Dhanvruddhi – Interest on Fixed Deposit

Mahindra and Mahindra Financial Services Ltd - Dhan Samruddhi - Interest on Fixed Deposit

Mahindra and Mahindra Financial Services Ltd – Dhan Samruddhi – Interest on Fixed Deposit

5. PNB Housing Finance Ltd

PNB Housing Finance Limited (PNBHFL) is a public sector housing finance company (HFC) and is promoted by Punjab National Bank. The company provides housing loans & loan against property as a part of its product portfolio.

Credit Rating: “FAAA” by CRISIL and “AAA” by CARE

Salient Features:

  • 0.25% additional rate for senior citizens.
  • Loan up to 75% of the FD Principal and accrued interest is available

Interest Rates:

PNB Housing Finance Ltd - Interest Rates

PNB Housing Finance Ltd – Interest Rates

6. Shriram Transport Finance UNNATI FD Scheme

Shriram Transport Finance is NBFC mainly dealing in Commercial Vehicle Finance.

Credit Rating: ‘FAAA’ by CRISIL and “MAA+” by ICRA

Salient Feature:

  • 0.25% additional rate for senior citizens.
  • Additional interest of 0.15% p.a to employees of Shriram Group Companies and their relatives.
  • Additional interest of 0.25% p.a on all Renewals, where the deposit is matured on or after 1st November 2018.
  • Fixed deposits are accepted in multiples of Rs.1000/- subject to a minimum amount of ₹5000/- per deposit for cumulative deposits and ₹10000/- per deposit for non- cumulative deposits.

Interest Rate:

Shriram Transport Finance UNNATI Fixed Deposit Scheme

Shriram Transport Finance UNNATI Fixed Deposit Scheme

Also Read: 13 Important Changes in Tax Rules from April 1, 2018

7. Shriram City Union Finance Ltd FD Scheme

Shriram City Union Finance is NBFC mainly dealing in retail consumer finance and offers various secured and unsecured loans like home loans, personal loan, business loan.

Credit Rating: ‘FAA+’ by CRISIL and “MAA+” by ICRA

Salient Feature:

  • 0.25% additional rate for senior citizens.
  • Additional interest of 0.15% p.a to employees of Shriram Group Companies and their relatives.
  • Additional interest of 0.25% p.a on all Renewals, where the deposit is matured on or after 1st November 2018.
  • Fixed deposits are accepted in multiples of Rs.1000/- subject to a minimum amount of ₹5000/- per deposit for cumulative deposits and ₹10000/- per deposit for non- cumulative deposits.

Interest Rate:

Shriram City Union Finance Ltd - Interest Rates

Shriram City Union Finance Ltd – Interest Rates

Download: PPF Calculator for Maturity, Loan and Partial Withdrawal

X. Post Office Time Deposit

Post office Time Deposit (Fixed Deposit) Account can be opened in any post office. The interest rates are reset at the start of every financial year. As of today they are offering higher interest rates than most of the banks. Once you have deposited the money, the interest rate is locked.

Also Read: Impact of RBI Rate Cut on Your Investments and Loans

Credit Rating: backed by Government of India

Salient Feature:

  • Fixed deposits are accepted in multiples of Rs.200/- and in multiples thereof
  • No maximum deposit limit

Interest Rate:

Interest Rate on Small Savings Scheme for October to December 2018

Interest Rate on Small Savings Scheme for October to December 2018

Company Fixed Deposit List:

The table below gives a list of company fixed deposits along with other details.

Company Fixed Deposits - December 2018

Company Fixed Deposits – December 2018

Also Read: Does Your Life Insurance Offers Tax Benefit?

TDS on Company FDs:

Companies would deduct TDS at the rate of 10% of interest, if the interest earned is more than Rs 5,000 in a financial year.

Tax on Company FDs:

The interest received on Company Fixed Deposit is fully taxable. The interest would be added to your annual income and taxed at marginal tax rates.

Also Read: 21 Hidden Charges in Saving Bank Account

Key Points before Investing:

Premature Withdrawal is possible on the above company fixed deposits but it requires much more paper work and follow ups. Even the penalty may be more severe as compared to banks

Opening Fixed Deposit is more tiresome as you need to fill forms, visit company branch or get hold of their agents.Also have to give fresh documents for KYC. Bank FDs can be opened online, which is much more convenient.

To Conclude:

The above companies are offering have the highest credit rating (which means very low chances of default) and are offering interest rates 1% to 2% higher than the bigger banks. You must look into them for your fixed income portfolio especially if they have easy approachable branches or agents near you.

Have you invested in these companies FDs before? How was your experience? Please share in comments section…

22 thoughts on “7 High Rated Companies Offering more than Bank Fixed Deposits – December 2018

  1. Many thanks for compiling this comprehensive and consolidated list!! One does not know where to find this elsewhere.
    One question – can’t you trade and sell these corporate FD on the secondary market on NSE after purchasing them, in case you want cash early? Is premature liquidation directly with the company the only way?

    Do you also happen to know if selling on secondary market is possible for CG and SG securities and T-bills, once you purchase them from the primary retail market (like IDBI Samriddhi G-Sec portal or equivalent)? If not, does one necessarily have to hold them through maturity?

    • This is like bank FD and so it cannot be resold. It has to be treated as premature withdrawal and can be done through the respective company itself. What you are talking about is the NCDs that companies offer and they too have higher interest rates.

  2. i am considering to open a FD of 30 L for my Mother in ES AF Small Finance Bank or Utakarsh Small Finance Bank for one year is this will be a safe investment

  3. Thanks Bro…just concerned about the safety in DHFL deposits…Bajaj Finance can be excellent choice..

  4. Jitender Kumar says:

    i am waiting for when the world will totally decentralized system and digital currency will come out

  5. Sir
    I want to deposit amount 1,00,000 as FD for 2 years. Kindly intimate in which bank I will deposited as FD. Kindly suggest me

  6. Abhishek Tripathi says:

    What is the reason people prefer Bank FDs over post-office FDs even though post-office FDs offer higher returns and are more safer option?

    • Investing in Post Office fixed deposit is cumbersome. You need to queue up in post office and entire process of investment/redemption is still offline and not a pleasant experience. Also when you change residence, you’ii need to transfer your deposits to new post office or come back to original post office to redeem your investment. However in case of bnaks FD can be created/redeemed online. Even in offline mode you can bank from different branches on the bank! All in all banks are easy option!

  7. Dear All,
    I am a retired person and a senior citizen. I do not have taxable income then why does the companies deduct TDS on my FD interest. Is there any way to avoid this deduction.

  8. MG Chandrashekar says:

    Useful and informative .

  9. HI Sir,

    just i was reading your article i found some error as i am seeing point 2 Bajaj Finance FD rates are mentioned in your articles is different to mentioned bajaj finance website please have a look.

    FYI: https://www.bajajfinserv.in/investment/fixed-deposit/fixed-deposit-fees-and-interest-rates.aspx

    • Thank you for pointing this out. Actually the post is updated every month and if there is a change in interest rate in the month, it might not correctly reflect. Hence its good idea to cross verify on company website.

      As you pointed out, I have updated the recent rates. We need more such active readers. Thank you again 🙂

  10. Very nice and valuable information,
    Its good to have some money in such funds to protect the risk

  11. http://dematking.com/ says:

    Good and valuable information.

  12. sumankgayen says:

    Is it really good to take so much of risk for company deposits as we know there are so many defaulters in the market? Also can equity be the substitute for these investment in terms of return?

    • Equity is totally different asset class. FD is for fixed returns and for limited duration. In equity the returns could be volatile and you might loose 25% in matters of weeks. As for risk is compared investing in top rated “AAA/AA+” companies is safe.

  13. Thank you for this informative post on corporate fixed deposits.

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