High Rated Company FDs Offering Higher Interest than Bank Fixed Deposit
The interest rates offered by banks on their fixed deposits have come down significantly in last few months. Most banks are offering interests in the range of 7.25% to 7.75%. This has created problem for people who depend on bank fixed deposit for their income.
However some best rated companies and institutions are offering interest rates higher than banks. Below are the details of 7 companies which have high credit rating and offering interest rate more than banks on their fixed deposit schemes.
SBI is offering 7.0% to 7.5% for 1 to 10 years fixed deposits while ICICI Bank is offering 7.5% to 7.9% on their FDs.
1.
DHFL Aashray Deposit Plus
DHFL is one of India’s leading housing finance companies.
Credit Rating: “AAA” by CARE and “FAAA” by BWR
Also Read: What does Credit Rating Mean?
Salient Features:
0.25% Additional interest rates for Senior Citizens, Widows, Armed Forces personnel, DHFL Home Loan/SME Loan/Mortgage borrowers
Minimum Deposit Amount: Rs 2,000 and multiples of Rs 1,000 thereafter
Loan up to 75% of the FD Principal and accrued interest is available
Interest Rates:
DHFL Aashray Deposit – Interest on Fixed Deposit
DHFL Aashray Deposit Plus:
It doubles the money in 95 months which means interest rate of approximately 9.1% compounded annually.
DHFL Aashray Deposit Plus – Double My Money – Interest Rates
DHFL Swayamsidha Deposit for Women:
This FD is especially for women offering higher interest rates:
DHFL Swayamsidha Deposit for Women – Interest Rates
Highest Interest Rate on Bank Fixed Deposits
Highest Interest Rate on Recurring Deposits
Highest Tax Saving Bank Fixed Deposit Rates U/S 80C
2.
Bajaj Finance Ltd Fixed Deposit
Bajaj Finance Ltd is a NBFC (non-banking finance company) dealing in all kinds of loans like Personal, Two/Three wheeler loans, car loans etc.
Credit Rating: “FAAA” By CRISIL and “MAAA” By ICRA
Salient Features:
Additional 0.25% interest for Senior citizens
Additional 0.10% interest for Bajaj group employees and existing customers for deposits up to Rs.1 Crore
Can access FDs online through their customer portal
Interest Rates:
Bajaj Finance Ltd – Interest on Fixed Deposit
Also Read: How to Fill Form 15G and 15H?
3.
KTDFC Ltd. Fixed Deposit
KTDFC (Kerala Transport Development Finance Corporation Ltd) is NBFC wholly owned by Government of Kerala and deals in Personal and Vehicle Loans among other things.
Credit Rating: KTDFC Fixed Deposits are fully guaranteed by Government of Kerala
Interest Rates:
KTDFC Ltd – Interest on Fixed Deposit
Also Read: 13 Investments to Generate Regular Income
4.
Mahindra and Mahindra Financial Services Ltd FD
Mahindra and Mahindra Financial Services is leading NBFC with focus on rural areas and is top tractor financier in India.
Credit Rating: ‘FAAA’ by CRISIL
Salient Features:
0.25% additional rate for senior citizens.
0.35% additional interest for all Mahindra group company employees and Employees Relatives
Interest Rates:
Mahindra and Mahindra Financial Services Ltd – Interest on Fixed Deposit
5.
Post Office Time Deposit
Post office Time Deposit (Fixed Deposit) Account can be opened in any post office. The interest rates are reset at the start of every financial year. As of today they are offering higher interest rates than most of the banks. Once you have deposited the money, the interest rate is locked.
Also Read: Impact of RBI Rate Cut on Your Investments and Loans
Credit Rating: backed by Government of India
Salient Feature:
Fixed deposits are accepted in multiples of Rs.200/- and in multiples thereof
No maximum deposit limit
Interest Rate:
Post Office Time Deposit – Interest Rate
6.
Shriram Transport Finance UNNATI FD Scheme
Shriram Transport Finance is NBFC mainly dealing in Commercial Vehicle Finance.
Credit Rating: ‘FAAA’ by CRISIL and “MAA+” by ICRA
Salient Feature:
0.25% additional rate for senior citizens.
Fixed deposits are accepted in multiples of Rs.1000/- subject to a minimum amount of Rs.10000/- per deposit account.
Interest Rate:
Shriram Transport Finance UNNATI Fixed Deposit Scheme – Interest Rate
7.
Shriram City Union Finance Ltd FD Scheme
Shriram City Union Finance is NBFC mainly dealing in retail consumer finance and offers various secured and unsecured loans like home loans, personal loan, business loan.
Credit Rating: ‘FAA+’ by CRISIL and “MAA+” by ICRA
Salient Feature:
0.25% additional rate for senior citizens.
Fixed deposits are accepted in multiples of Rs.1000/- subject to a minimum amount of Rs.5000/- per deposit account.
Interest Rate:
Shriram City Union Finance Ltd – Interest Rates
Download: PPF Calculator for Maturity, Loan and Partial Withdrawal
Company Fixed Deposit List:
The table below gives a list of company fixed deposits along with other details.
Company Fixed Deposit List – February 2016 (Click to Enlarge)
TDS on Company FDs:
Companies would deduct TDS at the rate of 10% of interest, if the interest earned is more than Rs 5,000 in a financial year.
Tax on Company FDs:
The interest received on Company Fixed Deposit is fully taxable. The interest would be added to your annual income and taxed at marginal tax rates.
Also Read: 21 Hidden Charges in Saving Bank Account
Key Points before Investing:
Premature Withdrawal is possible on the above company fixed deposits but it requires much more paper work and follow ups. Even the penalty may be more severe as compared to banks
Opening Fixed Deposit is more tiresome as you need to fill forms, visit company branch or get hold of their agents.Also have to give fresh documents for KYC. Bank FDs can be opened online, which is much more convenient.
To Conclude:
The above companies are offering have the highest credit rating (which means very low chances of default) and are offering interest rates 1% to 2% higher than the bigger banks. You must look into them for your fixed income portfolio especially if they have easy approachable branches or agents near you.
Have you invested in these companies FDs before? How was your experience? Please share in comments section…
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