Corporate fixed deposits (FDs) are currently offering attractive interest rates on tenures up to 5 years. FDs issued by housing finance companies and non-banking financial companies fall under the corporate fixed deposit category. Corporate fixed deposits yield better returns than most bank fixed deposits. Take a look at these top 5 corporate FDs in April 2024:

Shriram Finance FD rates

Shriram Finance has increased interest rates on cumulative fixed deposits by up to 20 basis points (bps) on various tenures, effective April 9, 2024. Women senior citizens investing in 50 months and 60 months fixed deposits are offered 9.4% interest rate per annum. This includes 0.50% addition rate for senior citizens and 0.10% for women senior citizens, the company said in a release. Senior citizen FD investors can earn 9.30% interest rate on FDs for 50 months, 60 months tenure. Regular citizens are offered 8.80% rate on FDs of same tenure.

Shriram Finance FDs are rated “[ICRA]AA+ (Stable)” by ICRA and “IND AA+/Stable” by India Ratings and Research.

Also Read: FD rates hiked by up to 60 bps: These two big non-bank lenders hike fixed deposit rates! Should you invest now?

Muthoot Capital FD rates

Muthoot Capital is offering interest rates ranging from 7.71% to 8.88% per annum on a cumulative basis on fixed deposits to senior citizens and 7.21% to 8.38% per annum to the general public. These rates are applicable on tenures ranging from 1 year to 5 years. (Source: Paisabazaar)

Muthoot Capital has a credit rating of A+/Stable by CRISIL.

Bajaj Finance FD rates

Bajaj Finance is currently offering FD interest rates ranging from 7.65% to 8.85% on varipus tenures to senior citizens. The lender also offers 7.40% to 8.60% interest on FDs for general customers. These rates apply on tenures ranging from 1 year to 5 years.

Bajaj Finance is offering special interest rates on its Digital FD. The NBFC provides 8.85% interest rate to senior citizens on a FD with tenure of 42 months and 8.6% rate to general custmers. These rates are applicable to deposits ranging from Rs 15,000 to Rs 5 crore, with effect from April 3, 2024. The NBFC has received ‘AAA/Stable’ credit rating by CRISIL and ‘AAA/Stable’ rating by ICRA. (Source: Paisabazaar)

Mahindra Finance FD rates

Mahindra Finance FD customers can get interest rates of up to 8.3% on a cumulative basis. The lender is offering interest rates in the range of 7.65% to 8.3% per annum for senior citizens and 7.40% to 8.05% per annum for the general public. These rates are applicable on FD tenures ranging from 1 year to 5 years. (Source: Paisabazaar)

Mahindra Finance is assigned ‘IND AAA/Stable’ rating by India Ratings and ‘AAA/Stable’ rating by CRISIL.

Note: As per India Ratings, ‘AAA’ rating shows highest degree of safety with lowest credit risk for the depositor. CRISIL’s ‘AAA’ rating shows very strong chances of timely interest and principal repayment.

Sundaram Home Finance FD rates

Sundaram Home Finance FD interest rates for senior citizens are ranging from 7.95% to 8.25% per annum on a cumulative basis on tenures ranging from 1 year to 5 years. The NBFC offers interest rates of 7.45% to 7.90% per annum to the general public. (Source: Paisabazaar)

Sundaram Home Finance has a credit rating of ‘AAA/Stable’ by ICRA and ‘AAA/Stable’ by CRISIL.

What is Cumulative Fixed Deposit?

In cumulative fixed deposits, a customer accumulates his interest on an FD product and get paid bot interest and principal amount at the end of the FD maturity.

Basically, the bank reinvests your interest earned in a year by adding it to the previous principal. The compounding impact helps your money grow a faster pace. Once a fixed deposit matures, the FD holder receives the maturity amount which comprises the individual’s initial deposit amount and accumulated interest.