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  • Fixed Deposit BYTES FROM OUR KITCHEN

    CRISIL Rating and their Effect on FDs

    What kinds of instruments does CRISIL rate?

    CRISIL is a full service rating agency and is the largest of its kind in India. CRISIL has singlehandedly pioneered the concept of credit rating in the nation. It has been trusted to rate a wide array of debt instruments including, certificate of deposit, bank loans, commercial paper, non-convertible debentures, bank hybrid capital instruments, asset backed securities, mortgage backed securities, perpetual bonds, partial guarantees, etc.

    Who does CRISIL cater to?

    Established in 1987, CRISIL’s ratings caters to investors, lenders, issuers, market intermediaries and regulators. CRISIL provides information that are required by these categories and issues credible benchmarks for evaluating the feasibility of credit repayment.

    What sectors do CRISIL ratings cover?
    CRISIL Rating and their Effect on FDs

    CRISIL ratings actively cover manufacturing companies, banks, non-banking finance companies, public sector undertakings, financial institutions, state governments, urban local bodies, mutual funds, industrial companies, non-banking financial institutions (NBFCs), Infrastructure entities, microfinance institutions, urban local bodies, etc. with a wide net encompassing 190 industry sectors.

    What is the role of CRISIL?

    CRISIL ratings play an invaluable role in providing assistance to issuers and borrowers. It bridges the gap between borrowers and funds, while also providing alternatives for the purpose of funding. Additionally, CRISIL ratings enhance the cost of funds by optimising them.

    How do CRISIL ratings affect Depositors?

    CRISIL ratings are heavily relied on by investors and lenders to supplement the internal evaluation process before submitting to making an investment. Whereas, with the view of the markets as a whole, CRISIL ratings are considered an important benchmark for pricing as well as trading of debt instruments.

    Furthermore, CRISIL ratings aid regulators in measuring and managing the credit risk involved with the activity of lending. These ratings are also useful in computing an entity’s adequacy in the sector of banking. Determination of eligible investment pool for insurance companies, pension funds and provident funds are also enabled with CRISIL ratings.

    How to decipher CRISIL’s rating system?

    CRISIL follows the following rating system while rating fixed deposits-

    NMNot Meaningful
    FDDefault
    FCHigh risk
    FBInadequate safety
    FAAdequate safety
    FAAHigh safety
    FAAAHighest safety

    CRISIL may add a (+) or (-) for ratings FAAA to FC to indicate the position of the company within the rating category.

    What does a good CRISIL score indicate?

    CRISIL ratings are one of the most important factors to gauge when looking for a company fixed deposit. A company’s or bank’s credibility is greatly determined using CRISIL ratings. Company fixed deposit schemes are generally graded by CRISIL and is the first thing that investors look into before making an investment in an account. These ratings behaves as an assurance that indicates the highest degree of safety for a fund. It also shows the timely servicing of the entity’s financial obligations, in turn aiding to the credibility. CRISIL ratings enable depositors to differentiate between high credit risk organisations from low credit risk organisations. For example, HDFC Bank is rated FAAA by CRISIL, thus indicating high credit quality and low credit risk in their fixed deposit scheme. The first and foremost thing to watch out for would be to invest into well rated schemes. A usual indicator for a well rated scheme is AA and above ratings.

    Higher rate of interest vs higher CRISIL rating?

    Institutions that offer higher rates of interest due to low credit ratings are usually high risk investments. Financial institutions that have received a bad rating from CRISIL tend to offer lucrative interest rates in order to lure depositors into investing.

    CRISIL provides an unbiased and objective assessment of an entity’s timely repayment capacity and history. This allows investors to make independent decisions when it comes to making a deposit in a company fixed deposit scheme.

    Why do investors rely on CRISIL ratings?

    CRISIL ratings greatly aid in understanding the financial health of the company offering the fixed deposit scheme. It allows the depositor with the assurance of making a comparative analysis amongst the various players in the market. It also enables the act of investing by securing the channels leading to investment decisions. With an easy to understand and simple rate card, depositors now have a benchmark to compare various offerings of the product. This allows the investor to wisely make a decision regarding the investment of hard earned money. Furthermore, CRISIL makes it possible to sieve through the numerous offers that are available across various companies.

    Does CRISIL rating affect a company’s Fixed Deposit rates?

    CRISIL does not directly affect Company FDs in any way, but is a sure shot way for investors and depositors to check the credibility of a particular entity before making a long term commitment. With the ever changing market trends, CRISIL makes it easier for the layman to keep up with the ever changing dynamics of the industry.

    Customer Reviews

    • SBI Fixed Deposit
      "Good FD account"
      0.5 5.0/5 "Blown Away!"
      I have invested the fixed deposit with State bank of India. Since the branch is nearest by my home and they have given me a locker facility hence i have chosen the fixed deposit with SBI. Overall, I'm very much satisfied with the services with SBI.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jan 18, 2019
    • YES Bank Fixed Deposit
      "Fraud by Yes Bank"
      0.5 1.0/5 "Really Bad"
      Yes Bank has not credited Interest for my Fixed Deposit. On enquiring they gave me a story that the interest amount has been adjusted towards TDS. They have not provided credit entry for the interest and the debit entry for the TDS respectively.
      Was this review helpful? 2
      , bhopal
      Reviewed on Jan 11, 2019
    • ICICI Bank Fixed Deposit
      "Smart Investment"
      0.5 5.0/5 "Blown Away!"
      In ICICI fixed deposit interest rate is around 6.75% per annum, I opened the FD through online. I have invested Rs. 1 lakh they wont take any charges for the pre matured fixed interest. I believe the interest rate is good compared to the government bank.
      Was this review helpful? 2
      , yamuna nagar
      Reviewed on Jan 10, 2019
    • Kotak Fixed Deposit
      "Average service"
      0.5 3.0/5 "Satisfactory"
      I am having a Fixed Deposit account with Kotak Mahindra bank, they provide good services when compared to other banks. I get good interest rate in returns after the maturity period which is after 3 years. Customer support is average with Kotak Mahindra bank.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 10, 2019
    • HDFC Bank Fixed Deposit
      "Hassle free"
      0.5 5.0/5 "Blown Away!"
      I also have a fixed deposit account with HDFC Bank. The process to open this account is easy. I can do it online. They also offer a good rate of interest on the account. The bank has always been up to the mark to ban with. It is very convenient and easy.
      Was this review helpful? 3
      , noida
      Reviewed on Jan 09, 2019
    • IOB Fixed Deposit
      "Better Banking Experience"
      0.5 4.0/5 "Great!"
      I have invested a fixed deposit with Indian Overseas Bank. My wife has recommended me about this bank since she is working over there. I invested the money of Rs. 50000. I don't remember about the tenure period. Before 1 years, i have invested the money with them.
      Was this review helpful? 0
      , tiruchirapalli
      Reviewed on Jan 09, 2019
    • ICICI Bank Fixed Deposit
      "Good Deposit"
      0.5 5.0/5 "Blown Away!"
      I have invested a fixed deposit with ICICI. There is no reason for selected this bank. They have offered me a interest rate of 6.5% and there is no processing fee. I have invested the money 8 months before. This is a one year plan. I'm happy about the services provided by the ICICI for this account
      Was this review helpful? 1
      , thane
      Reviewed on Jan 04, 2019
    • Corporation Bank Fixed Deposit
      "Average"
      0.5 4.0/5 "Great!"
      I had account with Corporation Bank and its very old one. I put fixed deposit before 3 to 4 years. The interest rate was around 7% which was minimum compared to others but am satisfied. I have deposited for 5 years. Actually have not taken any benefits, just have invested. The customer service was okay.
      Was this review helpful? 3
      , pune
      Reviewed on Jan 04, 2019
    • HDFC Bank Fixed Deposit
      "Good service"
      0.5 4.0/5 "Great!"
      I do have a fixed deposit account with HDFC Bank. They are giving good interest. I can manage this account on line. I have chosen HDFC because of bank financial is good. I have just started long time, The process was very quick and it was done through on line.
      Was this review helpful? 4
      , thane
      Reviewed on Jan 02, 2019
    • SBI Fixed Deposit
      "Best Investment plan"
      0.5 5.0/5 "Blown Away!"
      I have taken fixed deposit account in State Bank Of India . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 5
      , ahmedabad
      Reviewed on Dec 29, 2018
    • review Fixed Deposit
      "Good online features on FD"
      0.5 5.0/5 "Blown Away!"
      In Saraswat bank they are providing the interest around 7% per annum, the minimum amount Rs. 5000 to max, still my FD is running with this bank. The online options are excellent without visiting I can track the interest and deposit amount through online.
      Was this review helpful? 1
      , pune
      Reviewed on Dec 17, 2018
    • HDFC Bank Fixed Deposit
      "Convenient FD with HDFC"
      0.5 5.0/5 "Blown Away!"
      In HDFC I can deposit for minimum of Rs. 5000 to max amount. I done the investment of one time payment around Rs.6 lakhs. I can chose the tenure period based on the convenient, it gives the interest of 7% its maximum. I can open and close the account through online.
      Was this review helpful? 6
      , pune
      Reviewed on Dec 17, 2018
    • SBI Fixed Deposit
      "Very Good Service"
      0.5 4.0/5 "Great!"
      I had made this investment pretty long time back and the services which they had provided so far has been good. The interest rate with them has been good and the growth with the investment has also been good. Their customer support has been helpful in guiding with everything.
      Was this review helpful? 9
      , bangalore
      Reviewed on Dec 14, 2018
    • YES Bank Fixed Deposit
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has been a good service which they had been providing so far and i had started this investment a log time back. Their customer support has been helpful in guiding me in the investment plans and explaining with the growth of the investment. The interest rate with them has also been good.
      Was this review helpful? 4
      , bangalore
      Reviewed on Dec 14, 2018
    • Citibank Fixed Deposit
      "Not satisfied with the service"
      0.5 1.0/5 "Really Bad"
      I had started this investment a pretty long time back and they had been providing a good service. Their customer support has not been responsive and i do not suggest any one to make an investment through them. There has not been a good growth with the investment.
      Was this review helpful? 1
      , bangalore
      Reviewed on Dec 14, 2018
    • SBI Fixed Deposit
      "Good Investment Plan"
      0.5 4.0/5 "Great!"
      I have taken fixed deposit account in STATE BANK OF INDIA . They are not charging any charges for the account . I used to get income tax benefits . Am satisfied with the customer service and response.They are giving good rate of interest . Overall am happy with my account .
      Was this review helpful? 4
      , mumbai
      Reviewed on Dec 12, 2018
    • Post Office Fixed Deposit
      "Good investment plan"
      0.5 5.0/5 "Blown Away!"
      I have started investing in the fixed deposit almost more than 5 years. I have invested a variable amount in different times. They have offered me a interest rate of 7.5%. The response was good. I have chosen the post office because of the safe and security.
      Was this review helpful? 14
      , guwahati
      Reviewed on Dec 12, 2018
    • YES Bank Fixed Deposit
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      I have the fixed deposit account with the Yes bank and the interest rate they have given me is good, also the customer service is good too they have co-ordinated with me well they time to time update me about there date of pay my next fixed deposit date.On line banking services are fine one too and am really happy with them.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Dec 11, 2018
    • Axis Bank Fixed Deposit
      "Average bank to avail fixed deposit"
      0.5 4.5/5 "Excellent!"
      I have chosen the Axis bank for my fixed deposit. I have deposited around of Rs. 50000. Since they are providing very good services in their branch. They have offered me a interest rate of 6.5%. I put the money in 2015. I have visited their branch many times and the service is very much prompt. I had no issues with them.
      Was this review helpful? 2
      , hyderabad
      Reviewed on Dec 11, 2018
    • ICICI Bank Fixed Deposit
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      My fixed deposit is with ICICI Bank. I had to go to the bank and meet the executive and open the account. I can close the account online. There is a lock in period for 12 to 13 months. The interest I earn is satisfactory. I have a deposit of 70K. Overall good.
      Was this review helpful? 1
      , new delhi
      Reviewed on Dec 07, 2018
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