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:
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TDS threshold on Bank FD increased to Rs 40,000 from April 1, 2019
Avoid TDS: fill Form 15G and 15H
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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
Thanks for shareing this information it;s really help alot and also get to konw about how much high rate they were charge for fix deposit.Nice article!!
Hi Amit,
I was reviewing FD interest rates, & noticed that all the rates are lastr updated in October / November 2018.
Are these rates still prevailing or these are outdated.
Could you please confirm or share current rates.
Thanks
these are latest interest rates. The rates don't change so frequently for companies.
What about DHFL company deposit...........
We used to recommend DHFL FD but they had ratings downgrade and also a major crash in their share prices. This may impact their ability to repay FD investors. Right now stay away and wait for things to stabilize.
What is advice on live Jeevansathi policy, deferment period 5 years
It is mentioned with most company FDs that incentives are provided if we renew our FDs before maturity. The question is, should this renewal be for same duration as for original FD or we can change it at the time of renewal (Still enjoying incentives). It is crucial point. As if it is for same duration only then it is better to go for small duration & renew it later. The extra incentive will almost cover up difference in interest rate (Not exactly) but then we will have privilege to get money early to meet our need (Not breaking FD). If need is not there then we can renew it to cover up large part of interest loss for smaller duration by renewing it. Please suggest.
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.
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
yes
Is DHFL safe to invest?? Can you tell me it's advantages and disadvantages if investing the money for long 10 years, take care
Thanks Bro...just concerned about the safety in DHFL deposits...Bajaj Finance can be excellent choice..
i am waiting for when the world will totally decentralized system and digital currency will come out