Best Performing Company Fixed Deposits
Company Fixed Deposits (CFDs) are Term Deposits offered by companies viz. manufacturing firms and housing finance ventures. They usually offer a higher interest rate as compared to banks and Non-Banking Financial Companies (NBFCs).
This variant of Term Deposits is regulated by Section 58 A of the Companies Act, 2013.
Top 9 High-Paying Company Fixed Deposit Interest Rates
Top 9 Company FD rates | ||
Company | CRISIL/ICRA Rating | Maximum FD rate (per annum) |
Bajaj Finance | CRISIL FAAA/Stable, ICRA MAA/Stable | Up to 6.95% p.a. |
CRISIL FAAA | 7.35% to 7.45% | |
ICRA MAA+ | 7.65% to 8.40% | |
CRISIL FAAA | Up to 8.71% | |
CRISIL FAAA | 7.00% to 7.35% | |
ICRA MAAA | Up to 6.45% | |
ICRA AAA | Up to 10.50% p.a. | |
CRISIL FAAA | 6.97% to 7.50% p.a. | |
CRISIL FAAA | 7.90% to 8.95% p.a. | |
*The interest rates mentioned here tend to vary at the respective company's discretion. The rates mentioned here are for cumulative deposits as of May June 2025.
Company-wise Fixed Deposit Features
Name | Features |
Bajaj Finance FD |
|
Mahindra Finance FD |
|
Shriram Transport Finance Limited FD |
|
PNB Housing Finance FD |
|
LIC Housing Finance Limited FD |
|
HDFC Limited FD |
|
Housing and Urban Development Corporation (HUDCO) FD |
|
Sundaram Finance Company FD |
|
Muthoot Capital FD |
|
Top Company FD Rates Key Highlights
- Range of minimum deposit: Rs.1,000-Rs.25,000
- Frequency of interest payout: Monthly/Quarterly/Half-yearly/Yearly
- You can receive an insurance amount of up to Rs.20,000 on CFDs.
- CFDs come at a higher risk as opposed to the bank FD.
- The returns on CFDs are dependent on market fluctuations.
- In an unfavorable market climate, the company might get defaulted.
- Before investing in a CFD, you can assess the risks involved through CRISIL, ICRA or CARE ratings.
- Penalties on premature withdrawal is usually higher as opposed to bank FDs.
- 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
Rating Category | Meaning |
FAAA | Highest Safety/Most Stable |
FAA | High safety |
FA | Adequate safety |
FB | Inadequate safety |
FC | High risk |
FD | Default |
NM | Not Meaningful |
Understanding ICRA Ratings for Company Fixed Deposits
Rating Category | Meaning |
AAA | Highest safety/Lowest credit risk |
AA | High safety/Very low credit risk |
A | Adequate safety/low credit risk |
BBB | Moderate safety |
BB | Moderate risk of default |
B | High risk of default |
C | Very high risk of default |
D | Defaulted or expected to be in default |
Who is eligible to apply for a CFD?
- Individuals
- Residents of India
- Members of Hindu Undivided Family (HUF)
- Group enterprises
- Partnership companies
- Corporates
- Clubs
- Educational institutions
- Cooperatives
- Societies
- Associations
What are the documents needed by individuals to open a CFD?
- Government-validated ID Proof (any 1)
- Passport
- Ration Card
- Driver's license
- Voter ID Card
- Aadhaar Card
- Valid employee's ID
- NREGA job card
- Government-validated address proof
- Permanent Account Number (PAN)
- Two color passport-size photographs
How to Choose the Best Company Fixed Deposits
- 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.
- Repayment history - You must check the company's repayment history and the frequency at which they pay their customers.
- Credit rating - Ensure that the company's credit rating is high before deciding to avail a fixed deposit scheme.
Benefits of Company Fixed Deposits
- 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.
- Higher interest rates - Companies offer competitive interest rates on the deposit amounts.
- 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.
FAQs on Company Fixed Deposits
- What is the difference between FD schemes offered by banks and companies?
Bank FD schemes are schemes offered by banks while company offered FD schemes are schemes offered mainly by Non-Banking Financial Corporations (NBFCs). The interest rate offered by companies are higher as compared to bank FDs.
- What is the mode of interest payment in company FD?
The mode of payment is either cumulative or non-cumulative.
- What is the minimum tenure offered?
Minimum tenure offered is generally one year.
- Can I apply for a company FD online?
Yes, you can apply for a company FD online.
- How much additional interest rate can senior citizens earn?
Senior citizens can earn up to 0.50% additional interest rates on their deposits.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2025 BankBazaar.com.