Best 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 –
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.
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Suresh
Best company fixed deposit schemes in India to invest in 2013
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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.
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.
Very good articles and analysis. Good work.
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.
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.
Thanks for the explaination:)
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…
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 🙂
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?
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
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
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 ?