Company/Corporate Fixed Deposits

Corporate FDs issued by Housing Finance Companies (HFCs)/Non-Banking Financial Companies (NBFCs) offer higher interest rates than bank fixed deposits, especially the interest rates offered by public sector banks and major private sector banks.  However, unlike FDs opened with scheduled banks, corporate FDs are not secured under the insurance cover offered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), an RBI subsidiary. Hence, depositors should carefully examine the ratings assigned by recognized rating agencies like CRISIL, CARE, ICRA, etc while selecting the corporate FDs.

The credit rating agencies assign the ratings on the basis of their assessment of the NBFC/HFC issuing corporate FDs. Corporate FDs having higher ratings can be considered to carry lower chances of defaults in principal and interest repayments.

Top Corporate FD Interest Rates

Company Name	Credit Rating	Highest FD Rate	Interest Rates (% p.a.)			Additional interest rate for senior citizens (% p.a.)
			1-year tenure	3-year tenure	5-year tenure
Shriram Finance*	ICRA-AA+/Stable IND AA+/Stable by India Ratings & Research	8.09	7.39	8.09	8.09	0.50
Muthoot Capital Services Limited	CRISIL-A+/Stable	8.95	7.90	8.95	8.50	0.25
Manipal Housing Finance Syndicate Ltd	ACUITE – ACUITE A	8.25	8.25	8.25	7.75	0.25
Mahindra Finance	CRISIL -AAA/Stable; IND AAA/Stable by India Ratings	7.00	6.60	7.00	7.00	0.10-0.25
PNB Housing Finance Ltd.	CRISIL-AA/Stable CARE-AA+/Stable	7.10	7.00	7.10	7.10	0.25
Sundaram Home Finance	CRISIL-AAA/Stable ICRA-AAA/Stable	7.65	7.20	7.50	7.65	0.35-0.50
ICICI Home Finance	CRISIL-AAA/Stable ICRA-AAA/Stable CARE-AAA/Stable	7.65	7.05	7.60	7.60	0.25
Sundaram Finance	CRISIL-AAA/Stable ICRA-AAA/Stable	7.50	7.20	7.50	–	0.50
LIC Housing Finance Ltd.	CRISIL-AAA/Stable	6.90	6.70	6.85	6.90	0.25
Kerala Transport Development Finance Corporation Ltd.	Guaranteed by Kerala Govt.	7.00	7.00	7.00	6.75	0.25

*At Monthly Rests. Additional interest of 0.25% p.a on all renewals, where the deposit is matured. Additional interest of 0.50% for Senior Citizens and 0.10% p.a. for women depositors.

The above interest rates are updated as of 25 June 2025

Also Know: Which Banks/NBFCs offer the best FD interest rate?

Top 10 Corporate Fixed Deposits

Shriram Finance

Shriram Finance FD interest rates range from 7.53-8.09% p.a. for the general public and 8.03-8.59% p.a. for senior citizens on tenures ranging from 1 year to 5 years.  The NBFC also offers an additional interest of 0.25% p.a. on renewals of matured deposits and 0.10% p.a. to women depositors.

Credit Rating:

This NBFC has been accredited with a credit rating of AA+/Stable by ICRA and AA+/Stable by IND. As per the IND, AA+ indicates a high degree of safety regarding the timely servicing of financial obligations by the NBFC. As per the ICRA, AA rating indicates high credit quality with low credit risk for the depositor.

Highlights:

Highest slab rate	8.09% (for 3 years; 50 months – Jubilee; 5 years)
For 1 year	7.39%
For 2 years	7.63%
For 3 years	8.09%
For 4 years	–
For 5 years	8.09%

Muthoot Capital Services Ltd

Muthoot Capital FD interest rates range from 7.90%-8.95% p.a. for the general public and 8.15%-9.20% for the senior citizen depositors on tenures ranging from 1 year to 5 years.

Credit Rating:

This NBFC has been accredited with a credit rating of A+/Stable by CRISIL. As per CRISIL, ‘A’ indicates adequate safety regarding timely payment of interest and principal is satisfactory.

Highlights:

Highest slab rate	8.95% (for 3 years)
For 1 year	7.90%
For 2 years	8.65%
For 3 years	8.95%
For 4 years	8.75%
For 5 years	8.50%

Manipal Housing Finance Syndicate Ltd

Manipal Housing Finance FD interest rates range from 7.75%-8.25% p.a. for the general public and 8.00%-8.50% for senior citizens on tenures ranging from 1 year to 5 years.

Credit Rating:

The NBFC has been accredited with a credit rating of ACUITE A by Acuite Ratings & Research Limited. ACUITE A rating indicates adequate safety regarding timely servicing of financial obligations and carries low credit risk.

Highlights:

Highest slab rate	8.25% (for 1 year to 3 years)
For 1 year	8.25%
For 2 years	8.25%
For 3 years	8.25%
For 4 years	7.75%
For 5 years	7.75%

Mahindra Finance

Mahindra Finance FD interest rates range from 6.60%-7.00% p.a. for the general public for tenure 1 year to 5 years. The NBFC offers an additional 0.25% p.a. interest rate to senior citizens under the Samruddhi Cumulative Scheme and a 0.10% p.a. interest rate under the Dhanvruddhi Cumulative Scheme.

Credit Rating:

This NBFC has been accredited with a credit rating of “IND AAA/Stable” by India Ratings. As per India Ratings, AAA rating indicates highest degree of safety with lowest credit risk for the depositor. Also, Mahindra Finance has been accredited with a credit rating of AAA/Stable by CRISIL. As per CRISIL, AAA indicates very strong chances of timely interest and principal repayment by the housing finance company.

Highlights:

Highest slab rate	8.10% (for 36 & 60 months)
For 1 year	7.50%
For 2 years	7.80%
For 3 years	8.10%
For 4 years	8.05%
For 5 years	8.10%

Sundaram Home Finance Ltd

Sundaram Home Finance FD interest rates range from 7.20%-7.65% p.a. for the general public and 7.70%-8.00% p.a. to senior citizens on tenures ranging from 1 year to 5 years.

Credit Rating:

This housing finance company has been accredited with a credit rating of AAA/Stable by ICRA. As per ICRA, AAA indicates highest-credit-quality and carries the lowest credit risk for the depositors. Also, this home finance has been accredited with a credit rating of AAA/Stable by CRISIL. As per CRISIL, AAA indicates very strong chances of timely interest and principal repayment by the housing finance company.

Highlights:

Highest slab rate	7.65% (for 4 years & 5 years)
For 1 year	7.20%
For 2 years	7.50%
For 3 years	7.50%
For 4 years	7.65%
For 5 years	7.65%

ICICI Home Finance Ltd.

ICICI Home Finance FD interest rates range from 7.05%-7.65% p.a. for the general public and 7.30%-7.90% p.a. to senior citizens on tenures ranging from 1 year to 10 years.

Credit Rating:

This HFC has been accredited with a credit rating of AAA/Stable by CRISIL, AAA/Stable by ICRA and AAA/Stable by CARE. As per CRISIL, AAA indicates very strong chances of timely interest and principal repayment by the HFC. As per ICRA, AAA indicates highest-credit-quality and carries the lowest credit risk for the depositors. As per CARE, AAA indicates the highest degree of safety regarding timely servicing of financial obligations and carries the lowest credit risk.

Highlights:

Highest slab rate	7.65% (for 39 months; 45 months)
For 1 year	7.05%
For 2 years	7.45%
For 3 years	7.60%
For 4 years	7.60%
For 5 years	7.60%

PNB Housing Finance Ltd

PNB Housing Finance FD interest rates range from 7.00-7.10% p.a. to the general public and 7.25-7.35% p.a. to senior citizens on tenures ranging from 1 year to 10 years.

Credit Rating:

This HFC has been accredited with a credit rating of AA+/Stable by CRISIL, and AA+/Stable by CARE. As per CRISIL, AA indicates strong chances of timely interest and principal repayment by the HFC. As per CARE, AA rating indicates a high safety regarding the timely servicing of financial obligations and carries very low credit risk for the depositors.

Highlights:

Highest slab rate	7.10% (for 3 to 5 years)
For 1 year	7.00%
For 2 years	7.00%
For 3 years	7.10%
For 4 years	7.10%
For 5 years	7.10%

Sundaram Finance

Sundaram Finance FD interest rates range from 7.20%-7.50% p.a. for the general public and 7.70%-8.00% p.a. for senior citizens on tenures ranging from 1 year to 3 years.

Credit Rating:

This HFC has been accredited with a credit rating of AAA/Stable by CRISIL and AAA/Stable by ICRA. As per CRISIL, AAA indicates very strong chances of timely interest and principal repayment by the HFC. As per ICRA, AAA indicates highest-credit-quality and carries the lowest credit risk for the depositors.

Highlights:

Highest slab rate	7.50% (for 2 years; 3 years)
For 1 year	7.20%
For 2 years	7.50%
For 3 years	7.50%

LIC Housing Finance Ltd

LIC Housing Finance FD interest rates range from 6.70-6.90% p.a. for the general public and on tenures ranging from 1 year to 5 years. Senior citizens are offered an additional 0.25% p.a. interest rate over and above regular FD rates.

Credit Rating:

This housing finance has been accredited with a credit rating of AAA/Stable by CRISIL. As per CRISIL, AAA indicates very strong chances of timely interest and principal repayment by the housing finance company.

Highlights:

Highest slab rate	6.90% (for 5 years)
For 1 year	6.70%
For 2 years	6.80%
For 3 years	6.85%
For 5 years	6.90%

Kerala Transport Development Finance Corporation Ltd

Kerala Transport Development Finance FD interest rates range from 6.75-7.00% p.a. for the general public and 7.00-7.25% p.a. to senior citizens on tenures ranging from 1 year to 5 years. The repayment of deposits (both the principle and interest) of up to Rs 4,500 crores is guaranteed by the Government of Kerala.

Highlights:

1 year	7.00
2 years	7.00
3 years	7.00
4 years	6.75
5 years	6.75

Features of Corporate FD

• Corporate FD comes with a credit rating (such as AAA) accredited by recognized rating agencies such as CRISIL, ICRA and CARE. The rating indicates the highest safety to high risk of default in interest & principal payment and thus helps depositors assess the creditability of the financial institution.
• NBFCs/HFCs offer various interest pay-out options from which depositors can choose based on their requirements. These include monthly, quarterly, half yearly pay-out and annual pay-out options. Alternatively, depositors can choose the cumulative FD option in which the interest component is reinvested and thereby, helps in deriving the power of compounding. Thus, the cumulative option would help the depositor generate higher returns than non-cumulative options.
• The companies also offer premature withdrawal facilities to depositors. Most HFCs and NBFCs levy a penal rate (which can go up to 2%) on public deposits. However, some public deposits come with a lock-in period of 3 months within which deposits cannot be withdrawn.
• Depositors can also avail of loans against corporate FDs in both cumulative and non-cumulative FD schemes. However, some financial institutions charge 2% higher interest rate than the maximum fixed deposit interest rate
• The interest income earned from corporate fixed deposits is taxed as per the tax slab of the depositor.
• The corporate FDs are riskier than bank fixed deposits as the former are not covered under the deposit insurance program provided by DICGC, an RBI subsidiary. In the case of FDs opened with scheduled banks, cumulative deposits of a depositor (including his/her current, fixed, current, and recurring deposits) of up to Rs 5 lakh held with each scheduled bank are covered by the depositor insurance program from adverse events like bank failures.

Documents Required for Corporate FD

The following documents are required by depositors to open a corporate FD:

• Aadhaar Card
• Voter ID Card
• Ration Card
• Passport
• PAN Card
• Government-validated address proof
• 2 Colour Passport-sized photographs