Fixed Deposit | Do you want to make a fixed deposit of your money? Want to get more interest? These are the finance companies that pay the most interest.
Demand for fixed deposits is increasing day by day. Many people are investing in these as banks offer the best interest rates, both long-term and short-term. Most companies in the country offer 9% interest rate on fixed deposits. This interest rate is very attractive considering the current interest rate environment. Financial planners, however, warn investors to understand the risks involved in company FDs before investing. Among the companies described below, the issuers did not give ratings to PNB Housing, Sundaram Housing Finance, Sundaram Finance and LIC Home Finance. The rest are rated embedded. This data was given on October 01, 2020. The issuer also gives 0.25 per cent to all seniors. Sriram Transport Company 0.40 per cent, Sundaram Home Finance and Sundaram Finance 0.
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| Company name | Interest rate | Duration | Rating as of July 2020 | Issuer rating as of July 2020 |
| Sriram City Union Finance | 8.09 | 12 months to 60 months | MAA + / Stable by ICRA and tAA by Ind-Ra | Long term: IND AA / Negative Short term: IND A1 + by ind-Ra |
| Sriram Transport Finance | 8.09 | 12 months to 60 months | FAAA / Negative by CRISIL, MAA + / Stable by ICRA | Long term: AA + / Negative and short term: A1 + by Ind-Ra |
| Bajaj Finance | 6.88 | 12 months to 60 months | FAAA / Negative by CRISIL, MAAA / Stable by ICRA | Long term BB + / stable and short-term B by S&P Global |
| PNB Housing Finance | 6.50 | 12 months to 120 months | CRISIL FAA + / Negative, AA / Stable by CARE | Not Rated |
| Beautiful Home Finance | 6.22 | 36 months to 60 months | FAAA / Stable by CRISIL, MAAA / Stable by ICRA | Not Rated |
| Lovely Finance | 6.22 | 12 months to 36 months | FAAA / Stable by CRISIL | Not Rated |
| HDFC | 6.05 | 33 months to 66 months | FAAA / Stable by CRISIL, MAAA / Stable by ICRA | AAA by CARE and AAA by ICRA |
| LIC Housing Finance | 6.00 | 12 months to 60 months | FAAA / Stable by CRISIL | Not Rated |
| ICICI Home Finance | 5.95 | 12 months to 120 months | FAAA / Stable by CRISIL, MAAA / Stable by ICRA and AAA by CARE | AAA by ICRA |
| Mahindra Finance | 5.90 | 12 months to 60 months | FAAA / Stable by CRISIL | Long term: IND AAA / Stable by Ind-Ra |
Company fixed deposits or corporate FDs are very popular among investors. Because they provide a steady return. Offer slightly higher returns than banking on FDs. But at the same time the risk is even higher. However, like FDs, interest payments on corporate EPDs are levied entirely on your income tax slab rate. So it acts as a post tax return factor.
If you want to invest in corporate fixed deposits, choosing high rated ones can reduce the risk. Any rating indicates that the level of timely payment and security is strong. Ensure that high rating issuers have good efficiency as well as that premature redemption regulations are not strict.
