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6 Reasons why you should invest in Company/Corporate fixed deposits

Company Fixed Deposits
There are various companies which are offering fixed deposits to the investors. The rate of interest would be on higher side comparing to bank fixed deposits. Hence an investor can look for allocating some of the investments into these company fixed deposits as it is one of the best investment option.

6 Reasons why you should invest in Company / Corporate fixed deposits?
1) If your risk tolerance level is low, you can invest in these corporate fixed deposits. Majority of these are rated by rating agencies like Crisil etc., hence have a high safety level
2) The rate of interest are attractive which offers higher than the bank fixed deposits
3) High liquidity. Most of the corporate fixed deposits offer 2/3rd of the investment as loan by charging 2-3% of interest rate above the rate being paid to investor.
4) The tenure is also flexible. These are deposits which are offered ranging between 1 to 10 years
5) Interest payment frequency: An investor can choose the interest payment frequency either by Quarterly, Half yearly or Annually. The interest would be direct credit to the bank account, hence there is no manual depositing of cheque which would save time for an investor.
6) Interest earned is compounded annually. Any deposit selected for 1+ years would earn interest on compound basis. E.g. If the rate of interest is 10%, compounded annual interest would be 10%+ based on the tenure selected

What are the top corporate fixed deposits?
Below are the high rated corporate fixed deposits.

 

Fixed Deposits

Rating

1 Yr

2 Yr

3 Yr

4 Yr

5 Yr

Extra for Senior Citizen

Dewan Housing Finance

AA+

10.50%

10.50%

11.00%

10.50%

10.50%

0.50%

LIC Home Finance

FAAA

9.00%

9.00%

9.25%

9.50%

9.50%

0.10%

ICICI Home Finance

AAA

9.25%

9.00%

9.00%

9.00%

8.75%

0.25%

HDFC Ltd.

FAAA

9.25%

9.40%

9.50%

9.50%

9.25%

0.25%

HUDCO

AA+

9.40%

9.40%

9.40%

9.00%

9.00%

0.25%

Mahindra Finance

FAAA

9.50%

10.25%

10.50%

10.00%

10.00%

0.25%

PNB Housing Finance

FAA+

9.50%

9.50%

9.75%

9.75%

9.75%

0.25%

Shriram Transport

FAA+

9.25%

9.75%

10.75%

10.75%

10.75%

0.25%

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Suresh
Myinvestmentideas.com

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