5 Top Rated Company Fixed Deposit Schemes for superior returns

Top Rated Company FD Schemes5 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

​           NHB Sunidhi Term Deposit Scheme Interest rates


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

​        Mahindra Finance FD Interest rates - Apr-2014


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

​          PNB HFL FD Scheme


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

DHFL Aashray Deposit Plus-Interest rate-Cumulative

DHFL Aashray Deposit Plus-Interest rate-Non-Cumulative


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

Shriram Transport FD Scheme

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?

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Suresh
Top Rated Company Fixed Deposit Schemes for superior returns

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