Company/Corporate Fixed Deposits

*The aforementioned FD rates are applicable to deposits below Rs. 2 crore subject to further revision. Higher rates may be offered to senior citizens and existing account holders.

Let’s talk, in detail, about the deposits provided by the companies mentioned in the table above. But before drawing a comparison, it is important to understand if you should invest in a company fixed deposit.

Whenever you choose fixed deposits over the other investment options, the prime motive remains the safety. Although company fixed deposits are safe, they somehow lack behind from bank FDs. Except for higher yield, these FDs have less to offer.

If you have short-term investment goals but don’t want to deviate towards riskier options like shares or mutual funds, go for company FDs.

Companies offer higher interest rates than the average bank FD rates. This leads to better yield. This is so because company FDs are not covered by the DICGC (deposit insurance of up to Rs. 5 lakh which is only for bank FDs) and they want to attract investors with something solid. Credit health of these con-banking financial companies (NBFCs) is determined by the various credit-rating agencies like CRISIL, ICRA and CARE. Before investing, check for an average “Stable” rating by credit-rating agencies. If it’s going down, step away.

Read more: Credit Rating Agencies in India

However, if you’re a strictly conservative investor who would not take even an inch of risk, company FD is not for you.

Banks may default but RBI is there to back its investors with the DICGC insurance. In some cases, RBI facilitates mergers with stable and strong banks to revive the situation.

This is not the case with companies. You should at the most recent example of DHFL. The company’s future is quite gloomy and with it is the money of its investors.

Therefore, invest in a company FD if you’re aware of the risks involved are ready to take the said risks.

The following are some of the key features of note for the Mahindra Finance Fixed Deposit scheme (MMFSL):

• These deposits have a CRISIL FAAA rating indicative of potentially low risk or high
• Minimum deposit amount allowed is worth Rs. 5,000 (cumulative)
• Senior citizens get an additional 25% interest in Samruddhi deposits and 0.10% for Dhanvruddhi deposits
• Eligible investors include Resident Indians, companies, non-resident Indians, partnership firms, trusts and foundations, charitable trusts, HUFs, family trusts, sole proprietors and club/association/society
• The non-cumulative option includes yearly, half-yearly, quarterly and monthly interest payout schemes
• Interest is directly paid to the account holder via NACH/NEFT*

*NACH: National Automated Clearing House; NEFT: National Electronic Funds Transfer

The following are the Mahindra Finance Dhanvruddhi deposit interest rates and tenures (up to Rs. 1 crore) for online investors with cumulative option:

Note: The aforementioned Mahindra Finance FD rates are effective from 13^th February 2020. An extra of 0.2% above the standard FD rates offered to senior citizens and is applicable across tenures.

The following are the interest rates and tenures of Mahindra Finance Samruddhi deposit (up to Rs. 1 crore) for offline investors with cumulative options:

* An Additional 0.25% offered to senior citizens on all tenures. Rates/figures are liable to change periodically.

For Non-Cumulative FD rates, visit Mahindra Finance Fixed Deposit

The following are key features of the LIC Housing Finance fixed deposit, SANCHAY:

• Potentially low-risk investment due to the high credit rating of FAAA (Stable) by CRISIL
• Minimum deposit amount required for Rs. 10,000
• Can be applied by resident individuals, NRIs, Hindu Undivided Families, private limited companies, trusts, co-operative societies and associations of persons
• Cumulative and non-cumulative (monthly/annually) interest payment options available
• No TDS applicable on interest earned up to Rs. 5,000 in a financial year
• Premature withdrawal allowed after 3 months from the date of opening the deposit
• Loan against FD facility available up to 75% of deposit amount after 3 months from the date of opening the FD
• Nomination facility available

The following are the interest rate of LIC Housing Finance regular fixed deposit schemes*:

Note: 0.25% extra rates extended to senior citizens across tenures. These rates are subject to change anytime.  

For more information, please visit LIC Housing Finance Fixed Deposit

The following are the important points highlighting features of the fixed deposit scheme by Bajaj Finserv (previously known as Bajaj Finance FD):

• Potentially low-risk investments due to high CRISIL FAAA/Stable rating
• Tenure ranges from 12 months to 60 months
• Minimum deposit amount required is Rs. 25,000
• Higher rates (up to 0.25% higher rates) for senior citizens
• Auto-renewal options available
• Online loan up to Rs. 4 lakh available

Updated Bajaj Finserv FD rates for deposits up to Rs. 5 crore

Note: The aforementioned FD interest rates are subjected to change anytime.

Click here to know more about Bajaj Finserv Fixed Deposit

The following are key features of the PNB Housing Finance fixed deposits:

• High safety level investment due to the high credit rating of FAAA by CRISIL
• No TDS on interest earnings up to Rs. 5,000 annually
• Minimum deposit required is Rs. 10,000
• Individual residents, HUFs and corporates can apply for PNB Housing Finance FD
• Loan against FD facility available up to 75% of the deposit amount
• Nomination facility available as per National Housing Board guidelines

The following are the interest rate of PNB Housing Finance regular fixed deposit schemes:

Click here to know more about PNB Housing Finance FD.

The following points highlight the key benefits offered by HDFC Ltd. Fixed Deposit:

• Comes with AAA rating by CRISIL and ICRA
• Loan facility against FD is available to investors
• The minimum investment for the FD account is Rs. 20,000 (cumulative option)
• Both cumulative and non-cumulative (quarterly and half-yearly) options available
• Monthly and Annual income plans also available

The following are the interest rates of corporate fixed deposits from HDFC Limited:

Features about the fixed deposit scheme by Shriram Transport Finance Company Ltd.:

• High ratings of FAAA/Stable by CRISIL and MAA+ with ‘Stable Outlook’ by ICRA
• Minimum initial deposit starting from Rs. 5000
• Tenure ranging from 12 months to 60 months
• Available for resident individuals, companies, partnership firms, Hindu Undivided Families (HUFs) and unincorporated associations of body or Body of Individuals
• 25% additional interest for senior citizens and on renewal of deposits
• Auto-Renewal and Auto-Refund options available

Below-stated is the updated  table of Shriram Transport Finance FD rates:

 Note: The aforementioned Shriram Transport FD rates mentioned above (cumulative) are applicable with effect from 1st January 2020 (at monthly rests).

Click here to know more about Shriram Transport Finance Fixed Deposit

Key features of fixed deposit schemes offered by ICICI Home Finance are as follows:

• High rating of MAAA and AAA by ICRA and CARE respectively
• The interest rate on corporate fixed deposit is as high as 8.15%
• Minimum investment requires is as low as Rs. 10,000
• FD tenure ranging from 12 months to 5 years
• Online FD opening available for individuals and HUFs
• Senior citizens receive additional interest of 0.25% p.a. across all tenures

Updated ICICI Home Finance fixed deposit interest rates are tabulated below:

Key features of corporate fixed deposits offered by Sundaram Finance Company are as follows:

• Potentially low credit risk with a track record of AAA rating for three decades
• Minimum investment required as low as Rs. 10,000
• Corporate fixed deposit available with the option of cumulative and non-cumulative (quarterly and monthly payout) deposits
• Loan against FD may be granted up to 75% of the deposit amount
• A higher interest rate offered to senior citizens (0.50% extra)

The following are the updated Sundaram Finance FD rates effective from 1^st January 2020:

The following are key features of corporate fixed deposits offered by the Kerala Transport Development Finance Corporation:

• Potentially zero risk investments as FD guaranteed by the Government of Kerala
• Available in two variants – Money Multiplier Scheme (MMS; interest payment on maturity)and Periodic Interest Payment Scheme (PIPS – Monthly/Quarterly interest payment)
• The minimum investment required for corporate fixed deposit is Rs. 10,000
• Renewal option available to investors
• Additional interest offered to senior citizens (0.25% extra)

The following are interest rates offered on corporate FDs by Kerala Transport Development Finance Corporation:

Click here to know more about KTDFC Fixed Deposit

The following are some key features of the HUDCO FD scheme:

• Tax saving benefits up to Rs. 1.5 lakhs annually under Section 80C for 5 years lock-in corporate fixed deposit of HUDCO
• Potentially low risk due to high ratings of MAAA/Stable, CARE AAA (FD)/Stable and IND AAA/Stable by ICRA, CARE and India Ratings & Research respectively
• Loan facility available (except for tax saving FDs u/s 80C)
• Interest compounded annually
• An additional interest rate of 0.25% payable to senior citizens on all tenures

Check the table below for updated HUDCO FD rates for cumulative interest payout:

Click here to know about HUDCO FD

Following are key features of the Hawkins Pressure Cookers FD scheme:

• Potentially low risk with MAA (Stable) rating from ICRA
• Minimum investment requirement of Rs. 25,000

NOTE: Hawkins Cookers Ltd. is currently not accepting fresh applications for public deposits.

The following interest rates were on offer by Hawkins Pressure Cookers for its corporate fixed deposit scheme: