5 Top Rated Company Fixed Deposit Schemes for superior returns
The fixed deposit scheme would provide you with stable and fixed income, irrespective of interest rate fluctuations and market fluctuations. However, banks are offering FD schemes with low interest rates. In such situation, fixed deposit schemes offered by companies / corporates would help you to earn higher interest. In this article, I would provide the top rated company fixed deposits, their features, interest rates and how they can help you get higher interest rates.
What are company Fixed Deposits?
If you are familiar about company fixed deposits, skip this section. Companies/Corporates offer fixed deposit schemes for the general public to mobilize funds for their working capital or any other requirement. Since this is the easiest way to get money, many corporates approach this way. However, these are un-secured fixed deposit schemes. Means if something is happening to company performance and company is getting windup, the investors of the FD scheme would be given last preference (but before paying it to shareholders) to repay the deposit amounts. Hence, companies would issue such fixed deposits with high interest rates, which carries a high risk.
Also Read: Tamilnadu Power Finance Corporation FD Scheme Review
Then, is there any way we can reduce the risk and invest in such Corporate FD schemes?
Well, the only way to reduce the risk is to invest in a top rated company fixed deposit schemes. ICRA, Crisil, BWR have been rating companies/corporates and this could be a good indication about the performance of the company. I have analyzed a few top and best rated company FD schemes which you can invest now.
5 Top Rated Company Fixed Deposit Schemes for superior returns
1) NHB – Sunidhi Term deposit Scheme
National Housing Bank is wholly owned by RBI and has been formed to promote housing finance institutions and provide financial support for such institutions.
Features of NHB Sunidhi Term Deposit Scheme
- This FD scheme is available for 1 to 5 year period
- This FD scheme is available for cumulative and non-cumulative options
- Interest rates are 9.25% per annum.
- Annualised yield works out to be 9.58%.
- Senior Citizens would get an extra interest rate of 0.60% more compared to others.
- Individuals / HUF / Association of persons / Firms can invest in these Fixed deposit scheme
- Minimum deposit of Rs 50,000 and multiple of Rs 10,000 there on.
- Premature withdrawal available with certain conditions
- No TDS in case interest in a year does not exceed Rs 5,000. If interest is exceeding Rs 5,000, TDS would be deducted on total interest amount (not just beyond Rs 5,000) based on applicable tax laws.
- Crisil given the rating as FAAA which indicates highest safety regarding timely payment of interest and principal is strong
- Since this is wholly owned by NHB these are less risk
- More details about NHB FD scheme can be checked at this link
2) Mahindra Finance – FD Scheme
Mahindra Finance is wholly owned by Mahindra and Mahindra Ltd. This is a non-banking finance company focused on financing in urban and rural sector.
Features of Mahindra Finance Fixed Deposit scheme
- This FD scheme is available for 1 to 5 year period
- This FD scheme is available for cumulative and non-cumulative options
- Interest rates are between 9% to 10.25% per annum
- Annualised yield for 5 year FD scheme works out to be 11.85%.
- Senior Citizens would get an extra interest rate of 0.25% more compared to others.
- Individuals / HUF / Association of persons / Firms can invest in these Fixed deposit scheme
- NRI’s can invest in this Mahindra Finance FD scheme on non repatriation basis. The amount should be transferred from NRO account only. The interest also would be transferred to NRO account.
- Minimum deposit of Rs 10,000 for cumulative interest option and Rs 25,000 for half yearly interest option and Rs 50,000 for yearly interest non cumulative option
- Premature withdrawal available with certain conditions
- No TDS in case interest in a year does not exceed Rs 5,000. If interest is exceeding Rs 5,000, TDS would be deducted on total interest amount (not just beyond Rs 5,000) based on applicable tax laws.
- This is rated as FAAA which indicates highest safety regarding timely payment of interest and principal is strong
- More details about Mahindra Finance FD scheme can be checked at this link
Also Read: How to multiply real estate properties without any extra investment?
3) PNB HFL – FD scheme
PNB Housing Finance Limited is a joint venture of Punjab National Bank (74% stake) and Destimoney Enterprises Pvt Ltd (26% stake) which provides housing finance.
Features of PNB HFL Fixed Deposit scheme
- This FD scheme is available for 1 to 5 year period
- This FD scheme is available for cumulative and non-cumulative options
- Interest rates are between 9.40% to 9.65% per annum
- Annualised yield for 5 year FD scheme works out to be 11.81%.
- Senior Citizens would get an extra interest rate of 0.25% more compared to others.
- Individuals / HUF / Association of persons / Firms can invest in these Fixed deposit scheme
- NRI’s can invest in this PNB HFL FD scheme on non repatriation basis. The interest also would be transferred to NRO account.
- Minimum deposit of Rs 10,000 for cumulative interest option and Rs 20,000 for half yearly interest option.
- Premature withdrawal available with certain conditions
- No TDS in case interest in a year does not exceed Rs 5,000. If interest is exceeding Rs 5,000, TDS would be deducted on total interest amount (not just beyond Rs 5,000) based on applicable tax laws.
- Crisil given the rating as FAAA which indicates highest safety regarding timely payment of interest and principal is strong
- More details about PNB HFL FD scheme can be checked at this link
4) DHFL – Aashray Deposit Plus
Deewan Housing Finance Limited (DHFL) is one of the largest private housing finance company in India. DHFL has been assigned a rating ‘CARE AA+’ by CARE and ‘AAA’ by Brickworks for various secured long term debt instruments and CRISIL have assigned ‘CRISIL A1+’ rating for short term debt.
Features of DHFL Aashray Deposit Plus FD Scheme
- This FD scheme is available for 1 to 7 year period
- This FD scheme is available for cumulative and non-cumulative options
- Interest rates are between 10% to 11.25% per annum
- Annualised yield for 5 year FD scheme works out to be 15.45%.
- Senior Citizens would get an extra interest rate of 0.25% more compared to others.
- Individuals / HUF / Association of persons / Firms can invest in these Fixed deposit scheme
- NRI’s can invest in this DHFL FD scheme on non repatriation basis. The interest also would be transferred to NRO account and a maximum deposit period would be for 3 years only.
- Minimum deposit of Rs 10,000 for cumulative interest option and Rs 20,000 for monthly/quarterly/half yearly/yearly interest option.
- Premature withdrawal available with certain conditions
- No TDS in case interest in a year does not exceed Rs 5,000. If interest is exceeding Rs 5,000, TDS would be deducted on total interest amount (not just beyond Rs 5,000) based on applicable tax laws.
- BWR rated as FAAA which indicates excellent credit quality and CARE rated this as AA+ which indicates high quality by all standards and high investment safety.
- More details about DHFL FD scheme can be checked at this link
Also Read: How to invest retirement money in India for higher returns?
5) Shriram Transport Finance – Unnati FD Scheme
Shriram Transport is one of the largest transport finance company in India.
Features of Shriram Transport Finance Unnati FD Scheme
- This FD scheme is available for 1 to 5 year period
- This FD scheme is available for cumulative and non-cumulative options
- Interest rates are between 8.88% to 10.75% per annum
- Annualised yield for 5 year FD scheme works out to be 13.32%.
- Individuals / HUF / Association of persons / Firms can invest in these Fixed deposit scheme
- Minimum deposit of Rs 5,000 for cumulative interest option and Rs 10,000 for monthly/quarterly/half yearly/yearly interest option.
- Premature withdrawal available with certain conditions
- No TDS in case interest in a year does not exceed Rs 5,000. If interest is exceeding Rs 5,000, TDS would be deducted on total interest amount (not just beyond Rs 5,000) based on applicable tax laws.
- ICRA rated this as MAA+/Stable. The high-credit-quality rating assigned by ICRA. The rated deposits programme carries low credit for medium term.
- More details about Shriram Transport Unnati FD scheme can be checked at this link
Conclusion: My suggestion is that investors who want superior returns, but willing to take risks can invest in such FD schemes. Since these are top rated FD schemes, I feel the so called ‘risk’ would be less.
Readers, I would love you hear from you about these FD schemes. Have you invested in these schemes? If yes, what is your experience?
If you enjoyed this article, share it with your friends and colleagues on Facebook and Twitter.
Suresh
Top Rated Company Fixed Deposit Schemes for superior returns
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Dear suresh, made the mistake of investing in a company FD without much due diligence. The company cheques have bounced and a substantial portion of life savings are wiped off. I have filed a court case (civil). The company has made a loss this FY. What if anything can I do? Please advice.
Sir, Iam 59 yr old. I was doing business. Now I am retired person. I need a good return every nonth to run my
family. I invested in banks by fd. But now-a-days bank interested rates are very low. I can*t meet out my monthly expenses. So, pl.suggest me shall I invest in corporate fd, or in mutual funds like Birla sun life/ICICI
prudential. I want monthly/quarterly returns. My priciple amount also to be secure.I need minimum 12% return for my investments. Pl. suggest me. Thanks & regards.
Please also highlight on FDs of Tamil Nadu Powe and Infrastructure Development Corporation Ltd and Kerala Transport Development Finance Co Ltd. These are state government undertakings, interest rates are more and importantly, safe.
These are 100% safe as they are owned by respective state governments.
Dear Mr. Suresh
I have left a secured job and now in a private ltd. company where there is no deduction of PF etc. I have received a good amount of PF from my previous company which I want to save for my future. I am 52 years old and having two sons who are studying. I want to invest this money in FDs of private companies at minimum risk. what will be best for me, please suggest.
Thanks
Atul Srivastava
Dear Mr Suresh
When I was working as VP for a mfg group in Pune in 2008, one ICICI prudential insurance sales manager came to me for taking an insurance. I had Rs. 1,00,000 at my disposal at that time, to be invested, and so I told I am interested in investing this one lakh as a one-time payment and I made very clear that I cannot make another payment. He assured it is only
one -time payment and paying more in coming years is only optional. He said I will get back my money after 8 years.
Meanwhile, I resigned my job and settled in Coimbatore.
Now, during 2014, I got a call from ICICI saying that some amount is pending for me at ICICI. I went to their local branch office to collect this amount. To my shock, they said they are paying me only 20,000. When I asked for the reason, they said I have paid only the first year premium and subsequent premiums are not paid by me. I met the CRM manager there and explained. He admitted that it was a misguided sale by his sales manager, done to me.
When I made a complaint to ICICI office at Mumbai, they said they had sent sms to my mobile reminding me to pay second premium. But the mobile no. which they said they had sent reminder sms, is not mine .
Now Is there a way to get my money back. ( I refused to accept that 20,000 also in 2014 ).
Will approaching consumer court can solve this issue ?
Pl. guide me.
Regards
Sornam
Very Sad to hear this Sornam. Pls check this article which might help you. https://myinvestmentideas.com/2014/10/how-to-complaint-against-insurance-company-when-there-is-no-response/