Corporate Fixed Deposit
Fixed Deposits (FDs) have long been a favored investment avenue in India, with banks traditionally being the primary players. However, Corporate Fixed Deposits, also known as Company FDs, present an alternative investment opportunity. Permitted for issuance by select corporate companies and Non-Banking Financial Institutions (NBFCs), these FDs offer fixed interest rates and tenures. This essay delves into the world of Corporate FDs, emphasizing the importance of credit ratings and examining the current interest rates offered by prominent corporate entities for three-year tenures.
Corporate Fixed Deposit: An Overview
Corporate Fixed Deposit provide investors with the prospect of guaranteed income and predictable returns. Investors can choose between cumulative options for accumulating deposits or a payout option for monthly income. However, caution is advised when selecting Corporate FDs, with a strong emphasis on the credit rating of the issuing entity.
Interest Rates on Major Corporate FDs
1) Shriram Finance
Offering an attractive 8.18% interest for a three-year tenure, Shriram Finance extends an additional 0.50% interest to senior citizens. The company holds a robust AA+ Stable rating from both ICRA and India Ratings.
Read More About… Shriram Unnati Fixed Deposit – 9.20% Interest Rate
2) Mahindra Finance
Mahindra Finance provides a competitive 8.05% interest for three years, with an extra 0.25% for senior citizens. The company boasts AAA Stable ratings from CRISIL and India Ratings.
3) PNB Housing Finance
With a three-year interest rate of 7.85%, PNB Housing Finance offers an additional 0.30% interest to senior citizens. It holds AA positive ratings from both CRISIL and CARE.
4) Sundaram Home Finance
Offering a solid 7.75% interest for three years, Sundaram Home Finance provides an extra 0.35% to 0.50% interest for senior citizens. The company has received a AAA stable rating from CRISIL and ICRA.
5) Muthoot Capital Services
Muthoot Capital Services offers an attractive 8.07% interest for three years, with an added 0.50% interest for senior citizens. The company holds A+ Stable Ratings from CRISIL.
Providing a competitive 7.65% interest for three years, ICICI Home Finance extends an additional 0.25% interest for senior citizens. The company enjoys AAA stable ratings from CRISIL, ICRA, and CARE.
With a three-year interest rate of 7.50%, Can Fin Homes offers an extra 0.50% interest for senior citizens and holds AAA stable ratings from ICRA.
Bajaj Finance stands out with an 8.05% interest for three years, offering an additional 0.25% interest for senior citizens. The company holds AAA stable ratings from both CRISIL and ICRA.
LIC Housing Finance provides a competitive 7.75% interest for three years, with an extra 0.25% interest for senior citizens. The company boasts AAA stable ratings on CRISIL.
Corporate Fixed Deposits offer investors an attractive alternative to traditional bank FDs, with the potential for higher returns. However, careful consideration of the issuing company’s credit rating is paramount. The diverse range of interest rates and additional benefits for senior citizens make Corporate FDs a compelling option for investors seeking stability and returns in their investment portfolios. As with any investment decision, thorough research and due diligence are essential to making informed choices in the dynamic landscape of Corporate Fixed Deposits.
Note: Please be aware that fixed deposit rates are subject to change on a daily basis. Ensure to verify the current rates before making any investment decisions.