A company fixed deposit or corporate FD, a term deposit held for a specified period at a fixed interest rate, is offered by financial institutions and non-banking financial companies (NBFCs). Like bank fixed deposits, maturities for corporate fixed deposits can range from just a few months to 10 years.
FD customers have options to select from a variety of corporate FD plans, each with different tenures, interest rates, and issuing institutions to meet investment needs. With AAA and AA-rated corporate FDs, customers can expect stable returns and low volatility, making these term deposits a good choice for their investment portfolio.
Key benefits of corporate FDs:
Higher Returns: Company FDs usually offer better interest rates compared to traditional bank fixed deposits, allowing customers avail greater payoffs on their investments.
Flexibility: With corporate FDs, customers have options to choose from a range of tenures as per their needs, including monthly, quarterly, half-yearly, or yearly.
Liquidity: Corporate FDs may also offer better liquidity, making it easier to access your funds when needed compared to bank fixed deposits.
Also read: SBI special FD rate: Last chance to book this fixed deposit plan – Check features, benefits
Best corporate FD plans with highest interest rates:
Here are three top companies offering competitive fixed deposit rates, including benefits for senior citizens: Shriram Finance, rated ICRA-AA+/Stable, offers the highest FD rate of 8.47% for a 1-year tenure and 8.38% for a 5-year tenure. The company offers an additional 0.50% interest rate on its FDs for senior citizens.
Muthoot Capital Services Limited, with a CRISIL-A+/Stable rating, offers 8.38% for both 1-year and 5-year tenures. Senior citizens are offered an extra 0.50%.
Manipal Housing Finance Syndicate Ltd offers 8.25% for a 1-year tenure and 7.75% for a 5-year tenure, along with an additional 0.25% for senior citizens. These options deliver attractive returns while catering to the needs of senior investors.
Here is a table showing the best interest rate FD plans in September 2024 (Data source – Paisabazaar).
| Company | Highest FD Rate | Interest Rates (% p.a.) | Additional interest rate for senior citizens (% p.a.) | |||
| 1-year tenure | 3-year tenure | 5-year tenure | ||||
| Shriram Finance | 8.47% | 7.59 | 8.38 | 8.47 | 0.5 | |
| Muthoot Capital Services Limited | 8.38% | 7.21 | 8.07 | 8.38 | 0.5 | |
| Manipal Housing Finance Syndicate Ltd | 8.25% | 8.25 | 8.25 | 7.75 | 0.25 | |
| Mahindra Finance | 8.10% | 7.5 | 8.1 | 8.1 | 0.10-0.25 | |
| Sundaram Home Finance | 7.90% | 7.45 | 7.75 | 7.9 | 0.35-0.50 | |
| ICICI Home Finance | 7.80% | 7.25 | 7.75 | 7.65 | 0.25 | |
| PNB Housing Finance Ltd. | 7.75% | 7.45 | 7.75 | 7.6 | 0.20-0.30 | |
| Sundaram Finance | 7.75% | 7.45 | 7.75 | – | 0.5 | |
| LIC Housing Finance Ltd. | 7.75% | 7.25 | 7.75 | 7.75 | 0.25 | |
| Kerala Transport Development Finance Corporation Ltd. | 7% | 7 | 7 | 6.75 | 0.25 | |