The very words “Fixed Deposit” conjures up the image of a bank. However, there are other companies like a non-banking financial company that accepts term deposits or fixed deposits, or FD in short. Though not popular as FDs in banks, numerous Indians entrust their hard-earned money with the FDs which are referred to as corporate FDs.
Let’s see what the highest interest rates that are offered by these FDs. Usually, corporate FDs offer higher interest rate than those offered by banks because they have to compete with the banks to wean away deposits and banks are the default destinations for the common citizens to park his/her extra money.
Which is the best corporate FD
It is not possible to answer this question in brief. Usually, the investor has to choose one based on the rating of the instrument and the time period for which one deposits the money. A few of the popular corporate FDs that carry the highest interest rate in India are listed below:
Shriram Finance Fixed Deposits rates
50 months, 60 months: 8.91% (gen customer), 9.45% (senior citizen)
42 months: 8.86% (gen customer), 9.40% (senior citizen)
36 months: 8.81% (gen customer), 9.35% (senior citizen)
30 months: 8.46% (gen customer), 9.00% (senior citizen)
24 months: 8.26% (gen customer), 8.80% (senior citizen)
18 months: 8.11% (gen customer), 8.65% (senior citizen)
12 months: 7.96% (gen customer), 8.50% (senior citizen)
The point to note is that women depositors are given an additional 0.10 percentage point over and above the above-mentioned rates, No bank FD pays additional interest based on the gender of the depositor. Credit Rating: AA+ (stable) by ICRA, IND AA+ (stable) by India Ratings and Research.
Bajaj Finance Fixed Deposits
42 months: 8.85% at maturity (senior citizens)
44 months: 8.45% at maturity
33 months: 8.30% at maturity
22 months: 8.10% at maturity
18 months: 8.00% at maturity
Is corporate FD risky
Unlike the bank FDs, corporate FDs are not guaranteed by any agency. So, at least theoretically, there is an implicit risk that is higher than bank FDs. That’s why one has to watch the credit rating of the instrument. It is preferable to buy only AAA+ or AA+ instruments. The interest rate that a company pays on FDs it accepts from the people depends on factors such as tenure of the deposit, credit rating, amount of deposit and market conditions at that time.
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Highest FD interest rates: Like bank fixed deposits, corporate fixed deposits offer guaranteed returns for keeping a specific amount of money at a specific rate of interest. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
