Corporate Fixed Deposits or Company Fixed Deposits are saving cum investment tools offered by Non-Banking Financial Companies or NBFCs. These corporate or company fixed deposit schemes are backed by higher FD (as compared to bank FD rates) interest rates. Let’s check out the best company/corporate fixed deposit rates of 2021:
Top Corporate FD Interest Rates – 2021
|Company Name/Corporate||Interest Rates (p.a.)||Tenure range|
|Shriram Transport Finance Co. Ltd.||6.31%||7.25%||7.48%||12-60 months|
|Shriram City Union Finance Co. Ltd.||6.31%||7.25%||7.48%||12-60 months|
|Kerala Transport Development Finance Corporation Ltd.||6.00%||6.00%||5.75%||12-60 months|
|PNB Housing Finance Ltd.||5.90%||6.60%||6.70%||12-120 months|
|Sundaram Home Finance||5.50%||5.80%||5.80%||12-60 months|
|Mahindra Finance Ltd.|
(Samruddhi Cumulative Scheme)
|ICICI Home Finance||5.25%||5.75%||6.45%||12-120 months|
|HDFC Ltd.||5.70%||6.05%||6.40%||12-120 months|
|Bajaj Finance Limited||5.65%||6.10%||6.50%||12-60 months|
|LIC Housing Finance Ltd.||5.25%||5.75%||5.75%||12-60 months|
Interest rates updated on 8th Oct 2021. Rates are for the cumulative option.
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 whether you should invest in a company fixed deposit. 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.
However, company FDs are not covered by the DICGC (deposit insurance of up to Rs. 5 lakh which is only for bank FDs). This becomes an area of concern. But to address it, you can and should check the credit health of the respective company.
The credit health of these non-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 less than average, you should reconsider.
Read more: Credit Rating Agencies in India