Updated on: 31 Jan 2024 | 6 min read
Corporate FDs, as the name suggests, are the FD options offered by corporations or Non-Banking Financial Corporations (NBFCs). The interest rates offered by these FDs are generally higher than the traditional bank FDs. They use the money raised to fund their various day-to-day operations.
Features of a Corporate FD
Advantages of a Corporate FD
S. No | Name of the Company/NBFC | Interest Rate | Senior Citizen Interest Rate |
---|---|---|---|
1. | Shriram Finance | 8.60% | 9.10% |
2. | Bajaj Finance Ltd | 8.35% | 8.6% |
3. | Muthoot Capital | 8.38% | 8.88% |
4. | Manipal Housing Finance Syndicate Ltd. | 8.25% | 8.50% |
5. | Mahindra Finance | 8.05% | 8.3% |
6. | PNB Housing Finance Ltd | 7.85% | 8.15% |
7. | Sundaram Finance | 7.75% | 8.25% |
8. | ICICI Housing Finance | 7.65% | 7.90% |
9. | LIC Housing Finance | 7.25% | 7.50% |
10. | HDFC Ltd | 7.20% | 7.75% |
The following entities are eligible for Company FD:
Exploring the best company FD in 2023 shows us some great choices for saving money. These options give different benefits and periods, so people can pick what suits them best. Although big returns are exciting, it's smart to check how trustworthy they are and understand the rules. Thinking about what you want to do with your money and talking to someone who knows about finances can help you decide what's best for you.
Corporate FDs are backed by credit rating agencies in India. They do a lot of research before giving a high credit rating. Hence, they are generally safe investment options. However, the investor should do their homework before investing.
The companies or NBFCs that want to raise money from the public can choose to do the same by launching their FDs. For the same, they should follow all the rules and regulations of RBI and get themselves rated by credit rating agencies in India.
If the interest income earned from NBFC or corporate FD exceeds ₹5000/-, then TDS is deductible. The rate of tax is 10%, and if the PAN is not submitted by the investor, then the rate of interest is 20%.
To open a company FD, the investor needs a Photo ID proof, Address ID Proof and Two-coloured passport-sized photographs.