Top 5 Best Company FD Schemes in 2017 offering upto 10.5% yield

Top 5 Company FD Schemes to invest in 2017-minTop 5 Best Company FD Schemes in 2017 offering upto 10.5% yield


Banks are offering low interest rates of 6.5% to 7.5%. If you are looking for fixed income, but willing to take some risk, you can consider investing in some of the Top Company FD Schemes that are offering high interest rates. Which are the best company FD schemes to invest in 2017? Which are the top rated company FD scheme that are offering highest interest rates? What is the yield for such company fixed deposit schemes?

What are Company Fixed Deposits?


If you are familiar with this section, you can skip.

Companies offer fixed deposit schemes for general public to mobilize funds for their working capital and business expansion. Since this is the quickest and cheapest way to get funds, many corporates would adopt this way. However, these are unsecured company fixed deposit schemes. Means if something happens to company performance and company is getting closed, the investors of the FD scheme would be given last preference (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: Best Short Term Investment Plans for 2017

How to reduce risk if you are investing in Corporate FD schemes?


Best way to reduce the risk is to invest in a top rated company fixed deposit schemes. ICRA, Crisil, BWR gives credit rate to 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 in 2017. These are high rated FD schemes and also provide good returns.

Top 5 Best Company FD Schemes in 2017 offering upto 10.5% yield


Here is the list of 5 Best Company FD Schemes that can be reviewed and invested.

1) Kerala Transport Development Finance Corporation (KTDFC) – FD Scheme


KTDFC is owned by Kerala Government. The FD Schemes are guaranteed by Keral Govt to the tune of Rs 2,000 Crores and these can be considered as secured FD schemes.

  • KTDFC FD schemes are offered with cumulative and non cumulative options.
  • These FD Schemes are offered for 1 year to 5 years period.
  • Interest rates range between 8.25% to 8.75% depending on the tenure of the FD Scheme and Sr. Citizens.
  • Yield works out to be 9.1% for 1 year FD Scheme and 10.55% for 5 years FD Scheme.
  • Minimum deposit of Rs 10,000.
  • FD Scheme is available in 2 options i.e. PIPS and MMS Option.
  • First FD option is Period Interest Payment Scheme (PIPS) where interest is paid monthly / quarterly / half yearly / yearly.
  • FD Second option is Money Multiplier Scheme (MMS) where interest is compounded monthly and paid on maturity.
  • You can download the application form and the process note at this link.

Best Company FD 2017-KTDFC - FD Scheme - Individuals

Best Company FD 2017-KTDFC - FD Scheme - Senior Citizens-min

2) Bajaj Finance Fixed Deposit Scheme


Bajaj Finance Ltd is the part of Bajaj group and one of the most diversified non-bank and the largest financier of consumer durables in India. Features of Bajaj Finance FD Scheme are:

  • 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 8.05% to 8.3% depending on the customer type.
  • Individuals / HUF / Association of persons / Firms can invest in these Fixed deposit scheme.
  • NRI’s cannot invest in this FD scheme.
  • Minimum deposit of Rs 25,000.
  • 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 rated this company FD scheme as FAAA and ICRA as MAA which indicates high credit-quality.

Also Read: How to get most out of Sukanya Samriddhi Account Yojana Scheme?

3) DHFL Aashray Deposit Plus FD Scheme

Deewan Housing Finance Limited (DHFL) is one of the largest private housing finance company in India. DHFL has been assigned a rating ‘CARE AAA’ by CARE and ‘FAAA’ by Brickworks for various secured long term debt instruments. Features of DHFL Aashray Deposit Plus FD Scheme are:

  • This FD scheme is available for 12 months to 120 months.
  • This FD scheme is available for cumulative and non-cumulative options
  • Interest rates are between 7.75% to 8.25% per annum
  • 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 is Rs 2,000
  • 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 AAA which indicates high quality by all standards and high investment safety.
  • More details about FD scheme can be checked at this link

Best company fd 2017-DHFL Aashray Deposit - Individuals-min

4) 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 are:

  • 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 7.5% to 7.95% per annum
  • Annualised yield for 5 year FD scheme works out to be 9.72%.
  • Individuals / HUF / Association of persons / Firms can invest in these Fixed deposit scheme
  • Minimum deposit of Rs 5,000.
  • 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 and CRISIL FAAA which indicates high credit-quality.
  • More details about FD scheme can be checked at this link: http://stfc.in/deposits.aspx
  • Application form can be downloaded here.

Best company fd 2017-Shriram Transport Finance Unnati FD Scheme-Individuals-min

Best company fd 2017-Shriram Transport Finance Unnati FD Scheme-Senior Citizens-min

5) 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 are:

  • This FD scheme is available for 12 months to 60 months period
  • This FD scheme is available for cumulative and non-cumulative options
  • Interest rates are between 7.5% to 7.55% per annum for 1 to 5 years tenure FD schemes.
  • Interest rate is compounded annually for cumulative option.
  • Annualised yield for 5 year FD scheme works out to be 8.78%.
  • Senior Citizens would get an extra interest rate of 0.25% more compared to others.
  • The Mahindra Finance Ltd Fixed Deposit has a Crisil rating of 'FAAA', which indicates a high level of safety.
  • 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 is Rs 5,000.
  • Premature withdrawal can be made after 3 months from the date of deposit/renewal as per the Directions of Reserve Bank of India and the terms and conditions of the company.
  • 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.
  • More details about FD scheme can be checked at this link

Also Read: Airtel Payment Bank offer 7.25% interest on SB Account – Should you invest?

Top Rated company FD 2017-Mahindra Finance FD Scheme - Cumulative Scheme-min

Top Rated company FD 2017-Mahindra Finance FD Scheme - Non-Cumulative Scheme-min

Conclusion: These FD Schemes are highly rated, hence have low risk. If you want to invest in fixed income options and willing to take some risk, one can invest in these company FD Schemes.

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Suresh

Top 5 Best Company FD Schemes in 2017 offering high yield

21 comments

  • prabhat kumar sinha

    MIS SCHEME WITH MAXM INTEREST RATE FOR SENIOR CITIZENS? SECURITY OF INVESTMENT UP TO 25 L?
    MONTHLY/ QUARTERLY RETURN PER 1 LAKH?

  • Manesh

    Hi all, Shriram Transport Finance, Mahindra Finance and Bajaj Finance are granted CoR by RBI to accept deposits and gets rated by rating agencies every year, but Deewan Housing Finance Ltd (DHFL finance) is not mentioned in RBI notification however they get rated by rating agency. Please visit Google and type 'list of nbfc accepting public deposits' and click on top most result for better knowledge. Still company deposits are riskier bcoz rating agencies provide ratings based on current performance and not based on their future occurences. Also RBI do not provide guarantee on deposits made in NBFC, they only provide CoR.

  • Manesh

    How secured is depositing money with Tamil nadu Transport Development Finance Corporation Ltd(tdfc), as they mention higher interest.rates upto 11% for senior citizens? Please advice.

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