10 Top Performing Company Fixed Deposits

Features of Bajaj Finance FD

1. The tenure can range up to five years.
2. Senior citizens are offered on additional interest of 0.35%.
3. Can start investing from just Rs.5,000 per month.

Features of Mahindra Finance FD

1. Minimum deposit amount of Rs.25,000.
2. Additional 0.25% interest for senior citizens.
3. Tenure between one year and five years.

Features of Shriram Transport Finance Limited FD

1. Yearly interest rate between 7.65% to 8.40% 
2. Additional 0.50% interest for senior citizens.
3. Tenure ranging between one year and five years.

Features of PNB Housing Finance FD

1. Additional 0.25% interest for senior citizens.
2. Tenure ranging between one year and ten years.
3. Minimum deposit of Rs.25,000 for monthly income schemes. For other schemes, it is Rs.10,000.

Features of LIC Housing Finance Limited FD

1. Additional 0.25% interest for senior citizens.
2. Minimum deposit of Rs.20,000.
3. Tenure ranging between one year and five years.

Features of HDFC Limited FD

1. Additional 0.25% interest for senior citizens.
2. Loan against facility available.
3. Tenure ranging between one year and ten years.

Features of Housing and Urban Development Corporation (HUDCO) FD

1. Tax benefits under Section 80C of the Income Tax Act, 1961.
2. Loan facility available.
3. Nomination facility available.

Features of Sundaram Finance Company FD

1. Minimum deposit amount Rs.10,000.
2. Additional 0.5% interest for senior citizens.
3. Tenure ranging between one year and three years.

Features of Muthoot Capital FD

1. Additional 0.25% interest for senior citizens.
2. Minimum deposit amount is Rs.1,000.
3. Loan of up to 75% of your accumulated FD value.
4. Nomination Facility available.

Top Company FD Rates Key Highlights

1. Range of minimum deposit: Rs.1,000-Rs.25,000
2. Frequency of interest payout: Monthly/Quarterly/Half-yearly/Yearly
3. You can receive an insurance amount of up to Rs.20,000 on CFDs.
4. CFDs come at a higher risk as opposed to the bank FD.
5. The returns on CFDs are dependent on market fluctuations.
6. In an unfavorable market climate, the company might get defaulted.
7. Before investing in a CFD, you can assess the risks involved through CRISIL, ICRA or CARE ratings.
8. Penalties on premature withdrawal is usually higher as opposed to bank FDs.
9. If the interest income exceeds Rs.5,000, it will be treated under Tax Deducted at Source (TDS).

What do the ratings by CRISIL, ICRA and CARE mean?

Credit Rating Information Services of India Limited (CRISIL), Investment Information and Credit Rating Agency of India Limited (ICRA) and Cooperative for Assistance and Relief Everywhere (CARE) are globally-recognized rating agencies. These help you assess the credibility of a firm or institution before making an investment or applying for a loan.

Understanding the CRISIL Fixed Deposit Rating Scale

Understanding ICRA Ratings for Company Fixed Deposits

Who is eligible to apply for a CFD?

1. Individuals
   1. Residents of India
   2. Members of Hindu Undivided Family (HUF)
2. Group enterprises
   1. Partnership companies
   2. Corporates
   3. Clubs
   4. Educational institutions
   5. Cooperatives
   6. Societies
   7. Associations

What are the documents needed by individuals to open a CFD?

1. Government-validated ID Proof (any 1)
2. Passport
3. Ration Card
4. Driver's license
5. Voter ID Card
6. Aadhaar Card
7. Valid employee's ID
8. NREGA job card
9. Government-validated address proof
10. Permanent Account Number (PAN)
11. Two color passport-size photographs

How to Choose the Best Company Fixed Deposits

1. Background of the company -  Check the company's history and background before deciding to avail a fixed deposit scheme. You must also check the customer reviews as well.
2. Repayment history -  You must check the company's repayment history and the frequency at which they pay their customers.
3. Credit rating - Ensure that the company's credit rating is high before deciding to avail a fixed deposit scheme.

Benefits of Company Fixed Deposits

1. Flexible tenures - Various companies offer FD schemes with tenures ranging between one year and ten years. You can choose a tenure as per your requirements.
2. Higher interest rates - Companies offer competitive interest rates on the deposit amounts.
3. Assured returns - Investing in Company FD schemes is significantly safe and less risky due to high interest rates and credit ratings. The returns are assured.