A corporate fixed deposit, or corporate FD, is a term deposit with fixed interest rates kept for a predetermined amount of time majorly issued by Non-Banking Financial Corporations (NBFCs) & Housing Finance Companies (HFCs)

FD interest rate up to 8.6%: 10 corporate fixed deposits with the highest interest rates Here is list of company fixed deposit interest rates

Individuals looking for a higher fixed deposit interest rate than the bank’s rate can consider investing in corporate FDs. A corporate fixed deposit, or corporate FD, is a term deposit with fixed interest rates kept for a predetermined amount of time majorly issued by Non-Banking Financial Corporations (NBFCs) & Housing Finance Companies (HFCs).

Here is list of company fixed deposit interest rates

Company Fixed Deposit RatesCompany NameCredit RatingInterest Rates (p.a.)Additional interest rate for senior citizenHighest Rate SlabApplicable tenure1-year
tenure3-year
tenure5-year
tenureShriram Finance*ICRA - AA+/Stable
IND AA+/Stable by India Ratings and Research8.4750 months and 5 years7.59%8.38%8.47%0.50%Mahindra FinanceCRISIL - AAA/Stable India Ratings - IND AAA/Stable8.13 years and 5 years7.50%8.10%8.10%0.25%Manipal Housing Finance Syndicate Ltd.ACUITE - ACUITE A8.251 year, 2 years and 3 years8.25%8.25%7.75%0.25%PNB Housing Finance Ltd.CRISIL - AA/Positive
CARE - AA+/Stable7.8536-47 months7.45%7.85%7.65%0.20%-0.30%Sundaram Home FinanceCRISIL - AAA/Stable
ICRA - AAA/Stable7.94 years and 5 years7.45%7.75%7.90%0.35%-0.50%Muthoot Capital Services LimitedCRISIL - A+/Stable8.385 years7.21%8.07%8.38%0.50%ICICI Home FinanceCRISIL - AAA/Stable
ICRA - AAA/Stable
CARE - AAA/Stable7.653 to less than 5 years7.25%7.65%7.60%0.25%Can Fin Homes Ltd.ICRA - AAA/Stable7.53 years6.50%7.50%6.75%0.25%-0.50%Bajaj Finance LimitedCRISIL - AAA/Stable
ICRA - AAA/Stable8.642 months7.40%8.10%8.10%0.25%LIC Housing Finance Ltd.CRISIL - AAA/Stable7.753 years and 5 years7.25%7.75%7.75%0.25%*At Monthly Rests. Additional interest of 0.25% p.a on all renewals, where the deposit is matured. Additional interest of 0.10% p.a. for women depositors.Data as on 15th May 2024

Is it safe to invest in FDs of these Corporates?

According to the SBI securities website, “The deposit scheme of companies is ‘AA/AAA’ rated from independent rating agencies like CRISIL, ICRA & CARE (reaffirmed over the long period) which indicates credible track record & high to highest degree of safety when it comes to timely repayment of Interest and Principal investment amount.”

Are the returns on Corporate FDs taxable? If yes, what is the TDS treatment?

Yes. Interest earned from Corporate FD is taxed as per the marginal tax slab rate of an individual. Also, 10% TDS is deducted from the interest payable if total interest earned by an individual is equal or more than Rs. 5,000 in a financial year.
Resident Individuals can avail exemption from TDS by submitting form 15G / 15H (as applicable). However, this declaration has to be submitted in every FY until maturity.

Tips for choosing a Corporate FD:
Consider these factors before choosing Corporate FD schemes to invest in.
Credit Rating: Opt for higher-rated corporate FDs based on its credit rating which indicates the underlying risk of the company. Company Background: Assess a company’s business viability by referring to its Financial Statements, Management Discussion and Analysis (MD & A).Repayment History: Companies repayment history helps to determine a company's credit score, credibility and stability.
This story originally appeared on: India Times - Author:Faqs of Insurances