Company Fixed Deposit :If you want high interest rate through fixed deposit then you can look at the option of company FD. Company or corporate FD is also a fixed deposit scheme, which offers slightly higher interest than bank FD. These companies need funds to expand their business, due to which they bring corporate FD, so that funds can be raised from the public. At the same time, to attract investors, they offer higher interest.
SIP King: SBI Mutual Fund’s scheme gave SIP returns of more than 20% per annum in 5, 10 and 15 years, lump sum investment increased by 18 times.
Tata Digital also offered
Tata Digital has announced its entry into the retail investment sector with the launch of fixed deposit marketplace on superapp ‘Tata New’. Under Tata Digital’s offer (Tata Digital FD), customers can avail interest rates up to 9.1 percent on FD without opening a savings bank account. This is a corporate FD or company FD, also known as company term deposit. Many rating agencies including ICRA, CARE and CRISIL evaluate the company’s fixed deposit scheme and give ratings on that basis.
SIP Winner: This mutual fund scheme became the champion for 20 years, 1 lakh was converted into 51 lakh, monthly SIP of Rs 5000 made a millionaire
Investment up to Rs 5 lakh is 100% safe
Tata Digital says that through this, both experienced investors and new people will be able to invest easily. The company said that customers can make FD of at least Rs 1,000. The special thing is that in this fixed deposit, they will also get insurance of bank investment up to Rs 5 lakh by Deposit Insurance and Credit Guarantee Corporation (DICGC). The company says that with the Fixed Deposit Marketplace, we aim to expand the reach of financial products like fixed-returns to the common man by offering higher interest rates from multiple trusted providers. This simple and secure platform has been designed to offer competitive interest rates.
The company said that customers can choose from banks and non-banking financial companies (NBFCs) like Suryoday Small Finance Bank, Shriram Finance, Bajaj Finance for a wide range of investment options like FD.
SIP Return: Top rated scheme, one who did SIP by saving Rs 150 daily, got Rs 2 crore, lump sum investors got 31 times return
Higher interest on corporate FD
In today’s era, many companies want to expand or are busy expanding their business. Funds are required for this. To raise these funds from the public, these companies provide corporate FD facilities at higher interest rates. Generally, 1 to 1.5 percent more interest is available on corporate FD as compared to bank FD. The maturity of corporate FD can be from 1 year to 10 years.
How risky is it compared to bank FD?
It is worth noting that there is some risk in corporate FD as compared to bank FD. One reason for this is that companies raise funds through FD to expand their business. Which means that corporate FD and the interest received on it is directly linked to the business of that company. There is a risk of default in business, due to which corporate FD is also considered riskier than bank FD. Although its chances are very less. Anyway, if the rating agencies have given a high rating then it means that the risk is negligible.
Mutual Fund Stars: 3 new schemes of Motilal Oswal AMC among the rising stars of mutual funds, topped among the NFOs giving best returns.
How much interest on other corporate FDs
Shriram Finance
ICRA: AA+/Stable
India Ratings: AA+/Stable
Tenure: 1 year to 5 years
Maximum interest: 8.47% per annum
Interest to senior citizens: 8.80% per annum
Bajaj Finance
CRISIL: AAA/Stable
ICRA: AAA/Stable
Tenure: 1 year to 5 years
Maximum interest: 8.40% per annum
Interest to senior citizens: 8.65% per annum
Muthoot Capital Services
CRISIL – A+/Stable
Tenure: 1 year to 5 years
Maximum interest: 8.38% per annum
Interest to senior citizens: 8.88% per annum
LIC Housing Finance
CRISIL: AAA/Stable
Tenure: 1 year to 5 years
Maximum interest: 7.75%
Interest for senior citizens: 8.00% per annum
Mahindra Finance
CRISIL: AAA/Stable
India Ratings: AAA/Stable
Tenure: 1 year to 5 years
Maximum interest: 8.10% per annum
Interest to senior citizens: 8.35% per annum
PNB Housing Finance
CRISIL: AA/Positive
CARE: AA/Positive
Tenure: 1 year to 5 years
Maximum interest: 7.60% per annum
Interest to senior citizens: 7.90% per annum
Sundaram Home Finance
CRISIL: AAA/Stable
ICRA: AAA/Stable
Tenure: 1 year to 5 years
Maximum interest: 7.90% per annum
Interest to senior citizens: 8.40% per annum
ICICI Home Finance
CRISIL – AAA/Stable
ICRA – AAA/Stable
CARE – AAA/Stable
Tenure: 1 year to 5 years
Maximum interest: 7.65% per annum
Interest to senior citizens: 7.90% per annum
(Source: PaisaBazaar.com, SBI Securities)
