A company Fixed Deposit (FD) is a form of investment wherein non-banking financial companies or financial institutions accept deposits by investors and offer a fixed rate of return for their deposits for a stipulated period of time. The rate of return offered on these FDs are higher than bank offerings but the increase in profit comes with an increase in risk. Bank fixed deposits are secured deposits whereas company deposits are unsecured. This means that if the company were to default, the investor cannot sell the documents to recover the capital.
Hence, investors always choose the credit rating of various companies before making a company deposit. Companies with a credit rating of AA or AAA indicate the minimum required strength of performance and usually companies with ratings below these indicate poor performance and high risk.
Given below is a revised list of high-paying company FDs for 2018:
|Company||Tenure||Regular FD Interest Rates (per annum)||Senior FD Interest Rates (per annum)|
|HUDCO||2 years to 3 years||9.00%||9.25%|
|Kerala Transport Development Finance Corporation Ltd (KTFDC)||1 year||8.25%||8.50%|
|Shriram City Union Finance||1 year||7.50%||7.75%|
|LIC Housing Finance Ltd||1 year||7.30%||7.40%|
|Sundaram Home Finance||3 years||7.25%||7.70%|
|Mahindra Finance||3 years||7.80%||8.05%|
*Interest rates are subject to change and will be revised from time to time
Read more about: Top Bank FDs in India