Earn Over 7% on Company FDs – Compare Interest Rates
Fixed deposits are one of the preferred savings options for Indians, due to the security and flexibility in choosing tenures. Some people choose bank FDs, while others prefer to put their money in corporate term deposits (FDs). Although there is not much difference between the two, FD companies get a better interest rate.
The Company’s FDs are term deposits. You put your money in these FDs for a fixed term to earn a fixed rate of interest. The tenure of company CFOs can range from a few months to a few years. Depending on your needs and financial goals, you can deposit your money and earn interest according to your agreement with the lender.
For those looking to achieve their short-term financial goals, such as a trip abroad, buying an expensive electronic gadget, or a gift for family or friends, corporate FDs can be a good option. to earn a higher interest rate. Although the difference between corporate FDs and bank FDs may seem small, it can give you a large corpus if you consider long-term FDs. One of the interesting features of enterprise DFs is the shorter lockout duration. You can choose the term according to your needs.
Like bank FDs, corporate FDs also give you the option of taking out a loan when you need cash in an emergency. However, the amount and eligibility for such a loan facility may vary from company to company. Generally, you can take out a loan between 70% and 80% of your fixed deposit. But it is good to have clarification on the same before parking your money.
If you are considering putting your money in corporate trust funds, the rule of thumb is to check and compare interest rates from different companies. Also, it is good to do due diligence on the backgrounds of companies and the terms and conditions of their DFs. Always go for companies with good customer payment and interest rate history.
You should also check the company’s FD credit ratings and place your money only in companies that have AAA, AA, and AA+ ratings from agencies like Crisil, ICRA, CARE, etc.
FDs from higher rated companies are considered safe and they are also likely to offer you higher interest rates. Company FDs are taxable according to the income bracket of the investor. So, keep this in mind before signing an agreement with the lender.
Here is a list of the top 10 FD rates from companies and their ratings to help you decide. You can compare interest rates and terms and choose the ones that appeal to you or best meet your needs.
Company FD Rates and Ratings
Data as of 05 April 2022. All issuers provide an additional 0.25% interest rate to seniors except Shriram City Union and Shriram transport which provide 0.40%, while Sundaram Home Finance and Sundaram Finance that grant 0.50%. The data shows the highest interest rate for cumulative fixed deposit below Rs 1 crore in the corresponding term range. Data taken from the respective company’s website.
Compiled by BankBazaar.com