AAA Rated Company Fixed Deposits offering up to 8.4% interest rates
Banks have reduced fixed deposit interest rates drastically. If you observe large banks like SBI or ICICI Bank are offering 4% to 5% interest rates which are very small. While there are stocks and mutual funds which offer high returns, these are high risk and there is no guaranteed returns. If your goal is to get highest fixed income, then you can try for AAA rated company fixed deposit schemes. In this article, we would provide AAA rated companies that are offering highest fixed deposit rates up to 8.4% per annum.
Also Read: HSBC Corporate Debt Funds can provide 8% to 11% returns – Should you subscribe?
What are company fixed deposit schemes?
Companies / Corporates would mobilize funds through fixed deposit schemes for the public. Companies would use for working capital requirements or generate corporate purpose. Since getting loans from banks or financial institutions would be costlier, they would come with this approach.
Who can invest in these AAA Rated company fixed deposits?
Not all company fixed deposits are safe. There are a few companies which got windup/closed and some are on the verge of closure of their activities (DHFL as an example).
If you fall in below category of investors, you can invest in these FDs.
1) High risk investors can invest in these FDs.
2) Individuals who want to park some of their portfolio in fixed income instruments, expect high interest rates, but willing to take some risk can invest in these fixed deposits.
3) Individuals who are looking for fixed income beyond bank fixed deposits at the same time willing to take risks, can invest in these fixed deposit schemes.
3 AAA Rated Company Fixed Deposits offering up to 8.4% interest rates
Here are the 3 fixed deposit schemes.
1) Shriram Transport Finance offers 8.4% interest rates for 5 years FD scheme.
2) Bajaj Finance offers 7.1% interest rates for 3 to 5 years tenure fixed deposits.
3) Mahindra Finance offers 6.45% interest rates for 4 to 5 years FD tenure.
Now let us get into more details of these schemes.
3 AAA Rated Company Fixed Deposits – Details
Here are the complete details of these schemes.
1) Shriram Transport Finance FDs – 12 months to 60 months Tenure
Here are the details of the fixed deposit schemes.
Shriram Transport finance company (STFC) is registered as NBFC with RBI. STFC is among the leading organized finance provider in the commercial vehicle industry. It also added passenger commercial vehicles, multi-utility vehicles, three wheelers, tractors and construction equipment to its portfolio.
These FDs are rated by ICRA as MAA+/Stable outlook (indicates high credit quality) and CRISIL as FAAA/Negative (indicates highest degree of safety).
It offers cumulative and non cumulative fixed deposit schemes.
Under a Non cumulative option, it offers monthly, quarterly, half yearly and yearly interest payments. The interest rates are between 7.25% to 8.4% per annum depending the option chosen.
Under the cumulative option, interest is paid on maturity. The interest rates are between 7.25% to 8.09% per annum depending the option chosen. The yield works out to 9.94% for 5 years tenure FD scheme.
Senior Citizens would get 0.4% additional interest rates.
For renewal of FDs, one would get 0.25% additional interest rates.
You can invest online in this FD scheme by visiting the company website.
This FD scheme are provided for 12, 24, 36, 48 and 60 months tenure.
Minimum investment is Rs 5,000.
Here is the interest rates table for regular individual.
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2) Bajaj Finance Fixed Deposits
Here are the details of the FD scheme.
Bajaj Finserv Limited is the holding company for the businesses dealing with financial services of the Bajaj Group. Its subsidiary Bajaj Finance Limited is a Non-Banking finance company engaged in consumer finance, SME finance and commercial lending.
These FDs are rated by CRISIL as FAAA/Stable and ICRA as MAAA/Stable. This is the only Indian NBFC with an international rating of ‘BBB’ by S&P Global.
It offers cumulative and non cumulative fixed deposit schemes.
Under a Non cumulative interest option, it offers monthly, quarterly, half yearly and yearly interest payments. The interest rates are between 6.69% to 7.1% per annum depending the option chosen.
Under the cumulative interest option, interest is paid on maturity. The interest rates are between 6.9% to 7.1% per annum depending the option chosen.
One can get 0.1% extra interest if they have invested in Bajaj Finserv FD online.
Senior Citizens would get 0.25% additional interest rates.
For renewal of FDs, one would get 0.1% additional interest rates.
You can invest online in this FD scheme by visiting the company website.
This FD scheme is offered for 12-23 months, 24-35 months and 36-60 months tenure.
Minimum investment is Rs 25,000.
Here is the interest rates table for regular individuals.
3) Mahindra Finance Fixed Deposits
Here are the details of this fixed deposit scheme from Mahindra and Mahindra Finance Services Limited.
Mahindra and Mahindra Finance Services Limited (MMFSL) is the subsidiary of Mahindra and Mahindra Ltd (M&M). It is one of India’s leading non-bank finance companies (NBFC) focused on the rural and semi-urban sector.
These FDs are rated as FAAA by CRISIL.
It offers cumulative and non cumulative fixed deposit schemes.
Under a Non cumulative option, it offers monthly, quarterly, half yearly and yearly interest payments. The interest rates are between 5.15% to 6.45% per annum depending the option chosen.
Under the cumulative option, interest is paid on maturity. The interest rates are between 5.7% to 6.45% per annum depending the option chosen. The yield works out 7.34% for 5 years tenure FD scheme.
Also Read: Best Gilt Mutual Funds during falling interest rates
Senior Citizens would get 0.25% additional interest rates.
You can invest online in this FD scheme by visiting the company website.
This FD scheme is offered for 12 months to 60 months tenure.
Minimum investment is Rs 25,000 for monthly payment option and Rs 50,000 for quarterly, half yearly and yearly interest rate option. It is minimum of Rs 10,000 in case you want to invest for cumulative option.
Here is the interest rates table for regular individual.
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Hi. I want to invest in lumpsum say 5lakhs. I should get monthly income / interest. We’re can invest. My principle should be in safe mode. Kindly advice me…
Sir : I want to get my investment portfolio
Can i get a session from you:
Pavan
Hello Pavan, You can provide your queries here or mail to suresh @ myinvestmenideas.com so that I can respond to you directly.
Dear Sir
These AAA rated private company FD schemes are approved / Registered by RBI ?
and any case these company is in NP , Will be get the DIGG insurance of 5 L is it applicable to these scheme also ?
Yes these are RBI registered NBFCs. Any RBI registered NBFC would go for credit rating to accelerate the FDs.
Hi Sir,
Thanks for the great information.
Pls suggest on PPF ACCOUNT is good for saving?
If you are low risk taker and looking for tax savings, you can invest in PPF. Pls note it has 15 years lock-in period.
Sir how safe is investing in Tamil Nadu Power Finance FDs
Pls read this article which has pros and cons. https://myinvestmentideas.com/2020/05/tamil-nadu-power-finance-fixed-deposit-scheme-2020-should-you-invest/
Sir,
Kerala Government Treasury is offering an interest rate of 8.5% on FDs which is most probably the highest. Can you please comment on its safety ? Also is it possible to make a joint deposit in Kerala Government Treasury ?
Hello Priya, There is limited information available for Kerala Govt Treasury FD scheme (also named as TSB). The process is also not online. Let me check if I can get some info about this in coming weeks
So far known, the Kerala Treasury FD is safe. But the thing is that you have to open an SB a/c in the treasury and the monthly interest on FD will be credited to their SB a/c only. You can’t give your own bank mandate for getting Interest payment.
Hi.please advice good corporate fd, on quaterly basis on interest payout.thanks.
Hello Uttam, This article is about top rated FD schemes. Beyond this there are FD schemes, but which have low credit ratings and high risk, hence not recommended. You can review from this list
How safe is investing in Company Deposits? It is an unsecured debt. Whether Company gives any assurance or guarantee of repaying part of the sum invested? In Banks, Insurance cover is available upto Rs.5.00 lakh. If such cover is available in case of Company Deposits.
Company FDs are always risky. However investing in AAA rated schemes are relative safer compared to others.
Suresh, you are right.
As I am planning to retire next year, is it safe to invest 30 lakhs in KTDFC? Kindly advice. Thank you
Hello Krishnan, Pls review some of the risk factors indicated here. KTDFC is poor in responding to customers. If you read all risk factors and still want to invest, you can invest some amount of your overall portfolio. One should always diversify instead of putting eggs in one basket.
Are small finance bk covered under deposit insurance..?
Yes. Small Finance Banks are covered in Deposit Insurance coverage of RBI
Hi Mr. Suresh,
Like to know more about Utkarsh Small Fin Bank, HO Varanasi.
Rgrds
Hello Uday, Small Finance banks would still come under RBI perview. Investing in Small finance bank FDs are little risky as these are still new. However since there is deposit insurance up to Rs 5 Lakhs for all banks including small finance banks, you can invest in them if you are moderate risk investor.
Sir,
These banks are governed by RBI and also are obligated to list.
How can these be termed as risky
Regards
These are not banks. These are NBFCs. For Banks, there is deposit insurance of up to Rs 5 Lakhs if bank gets closed for some reason. But in NBFC there is nothing like deposit insurance. These are just governed by RBI, if NBFC closes (like DHFL), investor would get their money back after company is completely closed. Take an example of DHFL. There are several investors who are still commenting in this blog now that after DHFL scam, the closure process is still not done and investos are waiting for their deposits / NCD investments back. This is the risk what I am calling out in company fixed deposits.
Hi mr Suresh KP
After Your Message , you are giving previous Messages copies , on various Companies FD Schemes..Like Tamilnadu Power, ICICI Home Finance, KTDC etc
These previous messages are OLD ones and show OLD FD Rate – which are not Relevant in today’s scenario..
This Creates some confusion to regular readers..
Suggestion :-1) Either give Current FD Rates
2) Or if that is not feasible – at least pls DO NOT reproduce these OLD Messages
A request from me ..I am a regular reader of this column..
Your Current Messages are really helpful to investors
Thanking you
S. Ramakrishnan
Mail id ramkrish1011@gmail.com
Hello Ramakrishna, These are google ads. We are not able to remove old data from this as these are automatically filtered without any control from our side. We would continue to review this to see if we can make any change if Google makes this change from their side
Bajaj is providing 0.1% extra for regular individuals if one is getting the FD online.
You might want to add it for the benefit of everyone.
Hello Pranav, Thanks for your comments. I agree. I have added this now in Bajaj Finserv features.
Always love to all your articles….keep it up…
Want to know….for an wise investments….how many SIPs can be called idle….(4 or 5 etc…)??
Thanks Ketan. I can have 5 to 7 equity mutual funds (excluding any liquid funds or debt funds which are generally kept for short term). The idea of having these any funds are considering largecap, multicap and balanced funds variants we have. If there are high risk investors, they can add few more more from midcap and small cap funds.