Company FD Rates: Exploring Investment Options and Returns

In today’s volatile market, many investors seek safe and reliable investment avenues. Company FDs have emerged as a popular choice for investors who seek a balance between risk and return.

This is primarily because company FD rates are competitive. These saving tools allow you to earn interest rates of up to 9% p.a. if you are a regular investor. Senior citizens can earn up to 0.50% p.a. higher rates.

What Are Company Fixed Deposits?

These are offered by several corporate entities and Non-banking Financial Companies (NBFCs). They are also known as Corporate FDs and here are some important details to know before you invest in one: 

• Company FD rates are generally higher than traditional fixed deposits
• As opposed to regular FDs issued by banks, they also carry higher risk

Compare the investment amount, interest rate, and tenor to make an informed decision before investing

Compare Company FD Rates from Top NBFCs

To earn stable returns, you can consider investing in corporate fixed deposits. These are an attractive option if you are looking for better returns on your savings. Check out the company FD rates for regular and senior citizens from some of the top NBFCs and their CRISIL ratings – 

Issuer Name	CRISIL Rating	Highest Interest Rate (p.a.)	Additional Interest Rate for Senior Citizens (p.a.)
Bajaj Finance	AAA/STABLE	8.10%	Up to 0.40%
Shriram Finance Limited	AA+/Stable	8.47%	0.50%
Mahindra Finance	AAA/Stable	8.10%	Up to 0.25%
PNB Housing Finance Limited	AA+/Stable	7.75%	Up to 0.30%
LIC Housing Finance Ltd.	AAA/STABLE	7.55%	0.25%

Disclaimer: The interest rates provided above are only indicative and may change depending on the company’s policies. 

Benefits of Investing Corporate Fixed Deposits

These financial instruments allow you to enjoy several advantages of opting for corporate FDs, which include the following- 

Good Credit Ratings

You can opt for FDs with a CRISIL rating of AA+ or AAA, which indicates a certain degree of safety

Reputed Issuers

Established companies provide corporate FDs, which ensures investor confidence. They also must adhere to stringent regulatory guidelines. 

Easy Liquidity

Many company FDs offer a premature withdrawal facility, which allows you to access your funds when needed. While it might attract penalties, the option to liquidate the investment is a significant benefit.

Higher Returns

Corporate FD rates are generally higher than bank fixed deposits. They can be attractive for you if you wish to earn higher returns.

Regular and Assured Income

These fixed deposits also provide a steady stream of income through regular interest payments. You can get the interest at monthly, quarterly, half-yearly, or yearly intervals. This assured income can be particularly beneficial if you are a retiree or seek a stable income source.

Added Rates for Senior Citizens

Most issuers offer preferential rates to senior citizens investors. These added rates can significantly enhance retirement savings, making it an attractive option.

Flexible Tenor

These come with multiple tenor options to suit different investment horizons. Whether you are looking for short-term or long-term investment options, you can find a suitable FD to match your financial goals.

Things to Take into Account When Investing in Company FDs

Check out the factors to take into account to ensure you make the most of your investment-

Compare Issuers

Before investing, thoroughly check different companies offering corporate FDs. Consider factors such as the company’s financial stability, reputation, and past performance. Apart from company FD rates, check their track record of honouring FD payments.

Choose Tenor Wisely

Select an investment horizon that aligns with your investment goals. Short-term FDs offer flexibility, while long-term deposits often come with higher interest rates. Consider your financial needs and risk tolerance when choosing the tenor.

Select Suitable Payout Frequency

Company FDs typically allow you to get interest payments at different intervals. These include monthly, quarterly, semi-annual, or yearly payments. Choose the option that best suits your needs. 

Note that the monthly interest on FD may be lower than other options. Use an FD calculator to better understand your returns and choose the terms accordingly. 

Check CRISIL Ratings

These ratings provide an assessment of a company’s creditworthiness. Investing in FDs issued by companies with higher CRISIL ratings generally carries lower risk. Consider this factor when making your investment decision.

These are a compelling investment proposition if you prioritise security and steady returns. While they may not match the potential of high-risk investments, company FDs provide a reliable avenue for wealth growth.