Best company fixed deposit schemes in India to invest in 2013


Best company fixed deposit schemes in India to invest in 2013, Fixed deposit schemes in IndiaBest company fixed deposit schemes in India to invest in 2013

Among the fixed income investment options, company fixed deposit schemes in India provide higher interest rates comparing to bank fixed deposits schemes.

There are several small and large companies which are offering company fixed deposit schemes for 6 months to 5 years period. The interest rate varies from company to company. If you observe, the higher the interest rates offered by companies, the greater the risk is. Since such companies would not have gained confidence among investors, they offer higher interest rates to attract customers. One need to be very cautious before investing in any company fixed deposit schemes in India.

Also read: 10 Unique fixed deposit schemes to invest.

We have analyzed in dept and picked up some of the best company fixed deposit schemes in India where an investor can invest and get higher rate of interest. While analyzing, we have given due importance to safety of the capital and credit ratings given by CRISIL, hence you may not see a good interest rates like 11% or 12% p.a. where they carry high risk.

Best company fixed deposit schemes in India to invest in 2013

Government companies:

  • National Housing Board (NHB)
  • PNB Housing Finance Limited (PNBHFL)
  • HUDCO

Finance companies:

  • HDFC
  • Mahindra and Mahindra Financial Services Limited (MMFSL)
  • Shriram Transport finance (STF)

1) National Housing Board (NHB):

  • About the company: NHB is wholly owned by Reserve Bank of India which promotes the network of dedicate housing finance institutions and works to make housing credit affordable.
  • Credit rating: Crisil rates this FD as FAAA. This rating indicates that the degree of safety regarding timely payment of interest and principal is very strong. FAAA is Crisil highest rating; hence investing in such fixed deposit schemes in India would carry low risk.
  • Minimum Deposit: Rs 50,000 and multiples of Rs 10,000 thereafter.
  • TDS: No TDS up to Rs 5,000 interest income.
  • Loan facility: No
  • Premature cancellation: Available subject to certain conditions.
  • Rate of interest: 1 Year to 5 years: 9.25% p.a. (compounded on quarterly basis)
  • Senior citizen benefits: Nil
  • Website – http://www.nhb.org.in/Deposit_Scheme/SALIENT_FEATURES.php

2) PNB Housing Finance Limited (PNBHFL)

  • About the company: PNBHFL is a subsidiary of Punjab National Bank and owned by Govt. of India.
  • Credit rating: Crisil rates this FD as FAA+. This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However, the relative degree of safety is not as high as for fixed deposits with 'FAAA' rating and investing in such fixed deposit schemes in India would carry low risk.
  • Minimum Deposit: Rs 10,000
  • TDS: No TDS up to Rs 5,000 interest income.
  • Loan facility: Up to 75% of the deposits available at PNB and PNBHFL
  • Premature cancellation: Available after 3 months
  • Rate of interest:
  • 1 Year to 3 years : 9.40% p.a.
  • 4 years to 5 years: 9.30% p.a.
  • 6 years to 7 years: 9.25% p.a.
  • Senior citizen benefits: 0.25% additional interest would be paid
  • Website – http://www.pnbhfl.com/deposits.aspx#interest

3) HUDCO

  • About the company: HUDCO is techno financing institution which is owned by Govt. of India.
  • Credit rating: Crisil rates this FD as FAA. This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However, the relative degree of safety is not as high as for fixed deposits with 'FAAA' ratings. Investing in such fixed deposit schemes in India would carry minimum risk.
  • Minimum Deposit: Rs 50,000 and multiples of Rs 5,000 thereafter.
  • TDS: No TDS up to Rs 5,000 interest income.
  • Loan facility: Yes
  • Rate of interest:

     

    • 1 Year –  9.00% p.a.
    • 2 years – 9.10% p.a.
    • 3 years – 9.20% p.a.
    • 3 years to 6 years – 9.00% p.a.
  • Senior citizen benefits: 0.25% extra interest.

Website – http://www.hudco.org/Site/FormTemplete/frmTemp1PLargeTC1C.aspx?MnId=72&ParentID=71


Also read: How to invest and get benefitted from company fixed deposits.

4) HDFC

  • About the company: HDFC is the largest housing finance company in India. With consistent performance for over three decades, HDFC Ltd. has earned its credibility from over 14 lakh depositors
  • Credit rating: Crisil rates this FD as FAAA. This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However, the relative degree of safety is not as high as for fixed deposits with 'FAAA' ratings. Highest Safety – AAA rating from both CRISIL and ICRA for 18 consecutive years. Investing in such company fixed deposit schemes in India would carry minimum or zero risk.
  • Minimum Deposit: Rs 20,000
  • Rate of interest:

     

    • 1 Year  - 8.90% p.a.
    • 2 years – 9.05% p.a.
    • 3 years – 9.15% p.a.
    • 4 years – 8.90% p.a.
    • 5 years – 8.90% p.a.
  • Website – http://www.hdfc.co.in/deposits/interest-rates.asp

5) Mahindra and Mahindra Financial Services Limited (MMFSL)

  • About the company: MMFSL is from Mahindra group one of the leading NBFC’s. It provides personalized finance to utility vehicles, tractors, cars, focusing on rural and urban sector.
  • Credit rating: Crisil rates this FD as FAAA. This rating indicates that the degree of safety regarding timely payment of interest and principal is very strong. Crisil highest rating is FAAA. Investing in such fixed deposit schemes in India carries very low or risk.
  • Minimum Deposit: Rs 10,000 and Rs 1,000 in multiples thereof
  • TDS: No TDS up to Rs 5,000 interest income.
  • Rate of interest:

     

    • 1 Year  -  9.25% p.a.
    • 2 years – 10.00% p.a.
    • 3 years – 10.25% p.a.
    • 4 years to 6 years – 9.75% p.a.
  • Senior citizen benefits: 0.25% additional interest would be paid
  • Website – http://www.mahindrafinance.com/fixed_deposit.aspx

6) Shriram Transport finance (STF)

  • About the company: STF is from Shriram Group conglomerate which has presence in financial services i.e. commercial vehicle financing business, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance products and units of mutual funds
  • Credit rating: Crisil rates this FD as FAA+. This rating indicates that the degree of safety regarding timely payment of interest and principal is strong. However, the relative degree of safety is not as high as for fixed deposits with 'FAAA' ratings.  Investing in such fixed deposit schemes in India would carry minimum risk.
  • Minimum Deposit: Rs 25,000 and in multiples of Rs 1,000 thereof
  • TDS: No TDS up to Rs 5,000 interest income.
  • Premature withdrawal: Available after 3 months.
  • Rate of interest:

     

    • 1 Year  - 9.25% p.a.
    • 2 years – 9.75% p.a.
    • 3 years to 6 years– 10.75% p.a.
  • Website – http://www.stfc.in/deposits.aspx

Comparison chart of all these 6 best company fixed deposit schemes in India.

Best company fixed deposit schemes in India to invest in 2013

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Suresh
Best company fixed deposit schemes in India to invest in 2013


Article by Suresh

Suresh KP i.e. me have written 400+ articles on this blog. I love doing analysis and identifying the Best investment options.

46 Comments

  1. M.N.Srinivas says:

    I HAVE INVESTED Rs.50000/- in F.D at 8.75% for 36 months that is 3 years,but i prematurdly withdrawn the same before 2 month of the maturity date and i was credited with 48924/- i was told that Rs.1076/- adusted towards interest i want to know how they calculated this amount.

     

    • Suresh KP says:

      Hi Srinivas, They would have deducted 2% as pre-closure charges. The amount deductes come to 2.15%, not sure whether they deducted any addl charges over and above it. BTW, have you got 3rd year interest ? Ideally, they should have deducted the amount from last interest to be payable and not from principal.

  2. Susanta says:

    Please guide me about the company Pancard Clubs Ltd. investment plans in room booking .
    How it is safe to invest.
    How the company is safe.
    If I taking marketing career in this company.

    • Suresh KP says:

      Susanta, There are several complaints logged against the company which they earlier promised to give very very high returns which I feel is not possible. My personal advice is stay away from such companies.

      • bharat says:

        hi firstymr suresh i would like to tell you that pancard club is not investment or finance company they are in time share means advace booking of there hotel , resort if you are not  utilised that amount you will gate refund with nominal interest  also thaey give insurance cover free with every policy so susanta you can booked your room ans com last 23 years giving best service to there memebers

         

         

         

         

  3. Susanta says:

    Your advice is the best I find.

  4. Shobana says:

    Hi Suresh,

    Could you please suggest some of the best corporate fixed deposit schemes to invest for a period of 1 year with moderate risk and high returns.

    Thanks in advance,

    Shobana

  5. Jimmy says:

    Dear Suresh,

    How safe is it to invest in bonds with Moototh finance, promising me to pay intrest on a monthly basis by cheque? Could you also let me know their rating by the credit agencies?

     

  6. Ajay Mishra says:

    Dear Sir,

    I am a retired senior citizen and depends only on the interest on FDs. I want to invest 8-10 lac in Shriram Motor Finane Company for 3-5 years. Kindly guide:

    (1) Is my money safe in this company?

    (2) Appropriate limit of the amount for seafty point of view.

    (3) Appropriate time period.

    Thanking you,

    Ajay Mishra

  7. anush bekal says:

    Dear Suresh

    Need some assistance on the Future Group Investments 

    Is it safe ? since its a chain group i m confused 

    kindly help

  8. Pereira says:

    Hi Suresh,

    One of my friend is chasing me with Pancard Club Limited investment scheme which is giving 12.5% returns on 3 yrs investment including insurance cover. Do you have any ratings for this or any info on this company?

     

    • Suresh says:

      Pereira, I have not heard this scheme earlier. I have gone thru some of the forums and felt it is risky to invest in such schemes. Stay away from such schemes.

  9. Nandhini y v says:

    hi this is nandhini

  10. Arun says:

    Hi,

    I am looking for a short-term deposit for 6months with good returns. I'm confused where to invest. Could you please suggest me an option? If corporate FDs is the option please suggest the companies too. Thank you.

  11. pvsingh says:

    Hi Suresh,

    I want to know about the rating of Jaapee Fixed Deposit (Jaiprakash Associates Ltd) .

    What is the risk factor in investing in this fixed deposit. Actually I want to start some FD's for my future securities and for my kids education on regular basis. Is this the best or we can say good option of investment? If not then please guide me about the best option for the same and where to invest.

    Thanks

    P V Singh

    New Delhi

    • Suresh says:

      Hi PV Singh, Investment in corporate FD’s invovle risk for payment of interest and principal. If you are high risk taker, you can invest in such FD’s. JPL FD’s are not ranked by Crisil. JPL is into real estate and in case you are interested to take risk, you can invest small amount in this. Last week I analysed DHFL FD’s and company performance was good, however it is also into real estate. You can check such FD’s.

  12. Nitin says:

    Hi Suresh,

    Thanks for such a nice article. 

    Need your suggestion. I am thinking of investing 1lakh in Company FD in the name of my father, who is a senior citizen . Currently we deposit in SBI FD, but the interest rate is low in SBI. (9%). So I don want to further invest in SBI FD.

    So to play safe, Should I split 1lakh amount in different companies (mentioned by you). lets say 25k in four different companies or it doesnot matter. 

    Also, can you share your experience investing in these deposits.

    Thanks

    • Suresh says:

      If you refer any of the company FD articles, I would say these are high risk investments. You SHOULD diversify by investing in various companies instead of one company. Last week one reader said he invested in one company FD and they are not paying him interest and principal. I asked him to approach SEBI and provided URL to put such request. Don’t ever invest in single company deposit. Diverisify pls.

  13. Rajiv Menon says:

    Hi Suresh – thanks for your good work.

    'am interested to make a deposit in UNITECH FD scheme.  Since it is not rated Crisil or similar

    is there dny Govermental guarantee about the return of funds if they default.

    In that case how can i get the refund of my deposits?

    Pls, advise.

    • Suresh says:

      Hi Rajiv, As indicated, these are high risk, high return investments and there is no guarantee for the interest. However as per  Unitech, thy would be issuing advance cheques in case they are not honoured, you can always go to court for the money. 

  14. Kishore says:

    Hi Suresh,

    Please excuse me for asking this question. I didn't write any cheque till date. I've a question in filling the cheque, for example if I want to give a cheque of 20,000 to NHB I'll write as
    Pay  “NHB SUVRIDHI (Tax Saving) TERM DEPOSIT”.. do I need to strike the word "BEARER" on the cheque?

    Please help me out with this fundemental question.

    Much Thanks

    Kishore

    • Suresh says:

      Kishore, Sometimes we get into such fundamental doubts, no problem. You need to write “Account Payee” or “A/c Payee” or “Account payee only” on the top left hand corner of the cheque in between the lines and cross the line on “Bearer name. Pls see the sample here, on what is wrong and what is right. http://www.freeganita.com/en/mdlife/4_4.htm

  15. Kishore says:

    Hello Suresh,

    Good day!!

    I read about the Government schemes NHB and PNB Housing Finance Limited but couldn't found whether investing amount in PNB scheme giving exemption from income tax.

    And a small correction in NHB investment when I saw in the website the minimum deposit is 10,000 and not 50,000. Investing in NHB giving tax exemption.

    Please guide in which I have to invest the amount.

    Thank you
    Kishore

    • Suresh says:

      Hi Kishore, There is no exemption from income tax. The article specifies that there is no TDS deducted by them if the interest is < Rs 5,000. Interest is still taxable in the hands of individuals

  16. Saju says:

    Can you please inform your openion about Muthoot Finance

    • Suresh says:

      Hi Saju, As per my knowledge, currently there are no FD’s offered by Muthooth Finance. Please let me know more details so that I can advice you. 

  17. raj singh says:

    sir, i want to invest in pnbhfl fixed deposit worth of 50k.but i m nt able to get centers frm i can deposit.i m in bhubneswae.suggest me whr to go.i do hav my salary account in icici bank.

    • Suresh says:

      Hi Raj, You don’t need to worry. Download the form and fill the details along with cheque and send it to the official address. You can call 1800 120 8800 before initiating this process so that they can guide you on how to do it better way.

  18. Alok K says:

    Very good articles and analysis. Good work.

  19. Ritu Gupta says:

    Ritu Gupta says

    Suresh, I have invested Rs.3.50 lakh in Unitech and Ansal Properties for three years under cumulative option. Is it safe to invest in these companies. suggest some more comanies with safe investment. 

    • Suresh says:

      Ritu, while there are several companies which are offering fixed deposit schemes, you should be careful in choosing them. The primary criteria is the rating given by rating agencies. For Unitech and Ansal, there are no ratings given by credit agencies and we need to purely depend upon the performance of such companies. You should invest in FAAA, FAA+ rated deposits to look for safe investments.

  20. Arunkumar says:

    Thanks for the explaination:)

  21. Arunkumar says:

    Hi Suresh,

    This is a general question in Fixed deposit(lets say bank FD)…the deposit interest table starts with 7 days to many years…if you take SBI interest rate,,,they say they give 6.5 for 7 days and the same table says 8.75 for one year…instead of keeping it for 1 year to earn 8.75,why cant we keep the money for 7 days and get 6.5% and then 7 more days and get 6.5% again….By doing this, i think this  will give much return comparing to 8.75% per year.. ..Please let me know if my calculation/understanding is wrong…

    • Suresh says:

      Arun, good question. I just put your computation in an example about opening a FD for every 7 days with an example of Rs 10,000. So first seven days you would get interest @ 6.5% x 365 / 7 days on investment i.e. Rs 12.46. You close this and open another FD on 8th day for another 7 days for Rs 10,012.46. On 14th day you would get an interest of Rs 12.48. Similarly if you close every 7th day and open a new one for 7 days. After 1 year your investment amount is Rs 10,658 i.e. you have got 6.58% interest :-)

      • Naveen says:

        Gudone…

        I have question regarding the simple FD and cumulative FD, which is better? Is there any repeurcussion with cumulative FD dissolved before maturity? Are all frontline banks like SBI, ICICI etc provide choice of monthly computation of interest in case cumulative FD?

         

        • Suresh says:

          Naveen, Your returns would be higher in cumulative FD. Also both FD’s are similar in nature regd any terms and conditions. Cumulative FD’s are provided by banks by Quarterly/Halfyearly/Annually. Not all banks provide these options. If you visit bank’s site you would know wehther they are offering such options or not

      • Suresh Thiyagarajan says:

        Daar Suresh

        I simply feel the strategy  b/w 7 days & 365 days, would be that the kind of advantage you have in encashing them at shorter intervals. 7 days deposit is very useful for those who wants interest from their principal but at the same time dont want to lock in their cash. Correct my understanding if wrong

        • Suresh says:

          I could not understand this 7 days funda. Even if you invest for 1 year and if you feel to withdraw, you can do that by giving an intimatoin to bank. Bank may deduct penalty charges, that’s ok, but how does this 7 days deposit would work well ?

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