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10 Top Performing Company Fixed Deposits Interest Rates

Updated on: 31 Jan 2024 | 6 min read

What is a Corporate Fixed Deposit?

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

  • It provides a better interest rate than other FD options available.
  • They are rated by credit rating agencies and hence can be relied on by investors.
  • Corporate FDs have lower penalties for early withdrawal, and hence, investors can enjoy better liquidity.
  • Some issuers also lend against the corporate FDs.
  • Corporate FD has better liquidity than bank FD also, there is no restriction on the usage of funds once the deposit matures. 

 

Advantages of a Corporate FD

  • Guaranteed Returns: Regardless of market fluctuations, the company must fulfil its commitment to pay the promised interest to investors.
  • Simplified Investing: Corporate FD offers user-friendly features,  and it makes the investment process straightforward.
  • Digital Flexibility: Investors can enjoy hassle-free and convenient investments in FD using digital platforms.
  • Higher Returns for Senior Citizens: Senior citizens enjoy an even higher rate of return on their investments compared to non-senior citizen investors.
  • Lower Premature Withdrawal Penalty: Non-Banking Financial Companies (NBFCs) impose a more lenient penalty for premature withdrawals compared to banks, making it a favourable choice for investors.
  • Flexible Tenure: Investors have the freedom to choose their preferred investment duration from the options provided by the company, offering flexibility within specified timeframes.

Top Performing Company Fixed Deposit

S. NoName of the Company/NBFCInterest Rate Senior Citizen Interest Rate
1.Shriram Finance 8.60%9.10%
2. Bajaj Finance Ltd8.35%8.6%
3.Muthoot Capital8.38%8.88%
4. Manipal Housing Finance Syndicate Ltd.8.25%8.50%
5.Mahindra Finance 8.05%8.3%
6. PNB Housing Finance Ltd7.85%8.15%
7. Sundaram Finance 7.75%8.25%
8.ICICI Housing Finance 7.65%7.90%
9. LIC Housing Finance7.25%7.50%
10. HDFC Ltd7.20%7.75%

Who is Eligible to Apply for Company Fixed Deposit

The following entities are eligible for Company FD:

  • Hindu Undivided Family (HUF)
  • Clubs & Corporations
  • Associations & Societies
  • Educational Institutes
  • Indian Residents
  • Non-Resident Indian
  • Partnership Firms
  • Cooperatives

Conclusion

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.

FAQs

Are corporate fixed deposits safe?

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.

Do all corporate companies provide fixed deposits?

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.

Is TDS deducted on the interest from a corporate FD?

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%.

What are the documents required for Company FD?

To open a company FD, the investor needs a Photo ID proof, Address ID Proof and Two-coloured passport-sized photographs.

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