A company FD or company term deposit is nothing but a type of FD that is issued by companies such as finance companies, housing finance firms or other types of NBFCs. Company fixed deposits are a great way to raise funds from the general public for many firms/companies. These term deposits are usually rated for their credibility by a number of rating agencies such as ICRA, CARE, CRISIL, etc.
| Company | Regular FD Rates | Senior Citizen FD Rates |
|---|---|---|
| Kerala Transport Development Finance Corporation Limited | 5.75% - 6.00% | 6.00% - 6.25% |
| Mahindra Finance | 5.50% - 6.45% | 5.75% - 6.70% |
| LIC Housing Finance | 5.10% - 5.60% | 5.35% - 5.85% |
| Shriram City Finance | 6.50% - 7.75% | 6.80% - 8.05% |
| Who can appl |
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| Documents required |
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| Ag |
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| Minimum Amount | Period (Months) | Amount Payable (Rs.) | Interest (p.a.) | Effective yield (p.a.) |
|---|---|---|---|---|
| Rs.5,000/- | 12 | 5275 | 5.50% | 5.50% |
| 24 | 5618 | 6.00% | 6.18% | |
| 36 | 6006 | 6.30% | 6.71% | |
| 48 | 6420 | 6.45% | 7.10% | |
| 60 | 6834 | 6.45% | 7.34% |
| Tenure | Regular Individuals Interest Rates (p.a.) | Senior Citizens Interest Rates (% p.a.) |
|---|---|---|
| 1 year | 6% | 6.25% |
| 2 years | 6% | 6.25% |
| 3 years | 6% | 6.25% |
| 4 years | 5.75% | 6% |
| 5 years | 5.75% | 6% |
| Period | Rate of interest (p.a.) monthly (Non-Cumulative) | Rate of interest (p.a.) yearly (Cumulative & Non-Cumulative) |
|---|---|---|
| 1 year | 5.10% | 5.25% |
| 18 months | 5.35% | 5.50% |
| 2 years | 5.50% | 5.65% |
| 3 years | 5.60% | 5.75% |
| 5 years | 5.60% | 5.75% |
| Tenure (months) | Interest Rates for Regular Individuals (p.a.) | Interest Rates for Senior Citizens (p.a.) |
|---|---|---|
| > = 12 to < 24 | 5.25% | 5.50% |
| > = 24 to < 36 | 5.85% | 6.1% |
| > = 36 to < 48 | 6.05% | 6.3% |
| >= 48 to < 60 | 6.3% | 6.55% |
| > = 60 to < 72 | 6.45% | 6.7% |
| >=72 to | 6.10% | 6.35% |
Note: Interest rates w.e.f. 10 October 2021.
The important things that you need to know about the fixed deposit interest rates offered by non-banking finance companies are:
Credit cards do make life easier, but it requires a lot of documentation as compared to an FD. In case you have an FD, you can opt for a credit card against an FD, i.e. a secured credit card. You will continue earning interest on your FD even if you pledge the FD as ecurity for a credit card.
The credit limit for a credit card is low, so you can use it to build a credit score by clearing outstanding balance on time.
In terms of differences, both are FD accounts and offer the same features. Bank FDs are generally regarded more safer and pay lesser interest rate.
Yes.
Yes. The deposit can be broken before the maturity period but some NBFCs mandate a longer minimum investment period that may go upto 6 months to a year.
You can apply for a company FD online or by contacting the firm where you want make an investment.
Receipts may be issued to those who have applied for an FD offline/by visiting the branch.
Yes, in most cases.
Yes.
Interest payments will be credited to the bank account of the customer electronically as per the chosen frequency of interest payment.
In most cases, yes.
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