High Rated Companies Offering more than Bank Fixed Deposits
Most banks are offering interests in the range of 6% to 7% 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 6.1% for 1 to 10 years fixed deposits while ICICI Bank is offering 6.00% to 6.40%
Also Read: How SWP in Debt Funds generate higher returns than FD
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:
Interest Rates:
Also Read: How to Fill Form 15G and 15H?
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:
Also Read: 11 Investments to Generate Regular Monthly Income
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:
Interest Rates:
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:
Interest Rates:
Shriram Transport Finance is NBFC mainly dealing in Commercial Vehicle Finance.
Credit Rating: ‘FAAA’ by CRISIL and “MAA+” by ICRA
Salient Feature:
Interest Rate:
Also Read: 5 Important Changes in Tax Rules from April 1, 2019
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:
Interest Rate:
Download: PPF Calculator for Maturity, Loan and Partial Withdrawal
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:
Interest Rate:
Helpful Posts on Fixed Deposits
13 Most Important things to know before investing in Bank Fixed Deposits
Section 80TTB: Senior Citizens can Save Tax on their Interest Income
TDS threshold on Bank FD increased to Rs 40,000 from April 1, 2019
Avoid TDS: fill Form 15G and 15H
Small Bank FDs offer interest up to 9% – Should you invest?
How SWP in Debt Funds generate higher returns than FD
How to increase bank deposit insurance through Joint accounts?
How Safe is Your Fixed Deposit in Bank?
How you loose Money in Fixed Deposits?
Fixed Deposits that you can use to save Tax
Highest Interest Rate on Recurring Deposits
Understanding Compounding and Yield in Fixed Deposit
How to get Credit card against Fixed Deposit?
7 High Rated Companies Offering more than Bank Fixed Deposits
All about Post Office FD Schemes
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.
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
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.
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…
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View Comments
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
We publish highest fixed deposit interest across banks in India. You can pick the one which offers highest!
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!
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.
The TDS is deducted as per income tax rules. In case you do not fall in taxable range, you can submit Form 15G/H to avoid TDS. This needs to submitted every year and for all fixed deposits you have.
Useful and informative .
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 :)
Very nice and valuable information,
Its good to have some money in such funds to protect the risk
Good and valuable information.
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.
can you please suggest some "AAA/AA" componies?
Its mentioned in the post. Please look carefully
Thank you for this informative post on corporate fixed deposits.