With the new COVID-19 variant Omicron posing a threat to India’s economic recovery, it is essential to explore options to make the right investment and stay afloat of the rising inflation. Despite declining interest rates on bank account savings, there are still some avenues which can give you higher interest rates and help you earn good returns amid economic uncertainty.
Company fixed deposits can be an option for investors to explore as there are non-banking finance companies which are offering lucrative interest rates.
The Reserve Bank of India has taken a slew of measures in the last couple of years and avoided any change which might hamper demand and investors’ sentiments. In its latest monetary policy review meeting, the RBI has kept the repo rates unchanged at 4%. In fact, the apex bank had last revised the policy rates on May 22, 2020 to perk up the demand by cutting the interest rates to a historic low.
This is the time to make the most out of this situation and as an investor you need to know the market in and out on a daily basis. Currently, several public and private banks as well as housing finance companies are offering interest rates between 5.75% and 7.48% per annum on company fixed deposits. This is higher than what one usually gets in FDs and bank savings, according to Bankbazaar.
Company FDs or corporate FDs are a type of deposit like bank FDs. The top-rated company FDs offer the security of assured returns and the flexibility to select the tenure. One of the most attractive features of these corporate FDs is the higher rate of interest than bank FDs. Tenures of corporate FDs can range between 12 months and 120 months.
Investors should also not forget to check the credit ratings of the company FDs and are advised to invest in only those companies that carry AAA, AA and AA+ ratings from agencies like Crisil, ICRA, CARE, etc.
Top-rate company FDs are not only considered safe but they are also likely to give you higher rates of interest on your deposit. Also note that company FDs are fully taxable as per investor’s income slab.
Here are top 10 company FD rates and ratings based on which you can take your investment decision. You can assess your options and choose those company FDs which give you the highest returns and freedom to choose the tenure. Please note that the below table is not exhaustive and doesn’t include companies that are currently not accepting fresh deposits.
Latest Company FD Rates and Ratings
Data as on 08th Dec 2021. All issuers give an additional 0.25% interest rate to senior citizens, except for Shriram City Union and Shriram Transport that give .40%, whereas Sundaram Home Finance and Sundaram Finance that give 0.50%. Data shows highest Interest rate for cumulative fixed deposit below Rs 1 crore in the corresponding tenure range. Data taken from respective company’s website.
Compiled by BankBazaar.com