• 10 Top 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 10 High-paying Interest Rates FD Companys

    Top 10 Company FD rates
    Company CRISIL/ICRA Rating Maximum FD rate (per annum)
    ICICI Home Finance Ltd FD CRISIL FAAA 5.70% p.a. - 6.65% p.a.
    Mahindra Finance Ltd FD CRISIL FAAA 5.70% p.a. - 6.45% p.a.
    Shriram Transport Finance Ltd FD ICRA MAA+ 7.51% p.a. - 8.26% p.a.
    PNB Housing Finance Ltd FD CRISIL FAAA 5.90% p.a. - 6.70% p.a.
    LIC Housing Finance Ltd FD CRISIL FAAA 5.25% p.a. - 5.75% p.a.
    HDFC LTD FD ICRA MAAA Up to 6.55%
    Housing and Urban Development Corporation (HUDCO) FD ICRA AAA 7.25% p.a. - 7.50%p.a.
    Sundaram Finance Company FD CRISIL FAAA 5.72% p.a. - 6.22% p.a.
    Muthoot Capital FD CRISIL FAAA 7.75% p.a. - 8.00% 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 2021.

    • The highest company FD rate is offered by Shriram Transport Finance Ltd. at 8.26% p.a.
    • Many companies offer a higher Fixed Deposit rate to senior citizens.

    Features of ICICI Home Finance FD

    • Tenure ranging between 1 year and 10 years.
    • Minimum deposit amount of Rs.10,000.
    • Loan of up to 75% of your deposit amount.
    • Additional interest of 0.25% for senior citizens.

    Features of Mahindra Finance FD

    • Minimum deposit amount of Rs.25,000.
    • Additional 0.25% interest for senior citizens.
    • Tenure between 1 year and 5 years.

    Features of Shriram Transport Finance Limited FD

    • Yearly interest rate between 7.51% p.a. and 8.26% p.a.
    • Additional 0.40% interest for senior citizens.
    • Tenure ranging between 1 year and 5 years.

    Features of PNB Housing Finance FD

    • Additional 0.25% interest for senior citizens.
    • Tenure ranging between 1 year and 10 years.
    • 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

    • Additional 0.25% interest for senior citizens.
    • Minimum deposit of Rs.20,000.
    • Tenure ranging between 1 year and 5 years.

    Features of HDFC Limited FD

    • Additional 0.25% interest for senior citizens.
    • Loan against facility available.
    • Tenure ranging between 1 year and 10 years.

    Features of Housing and Urban Development Corporation (HUDCO) FD

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

    Features of Sundaram Finance Company FD

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

    Features of Muthoot Capital FD

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

    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).

    Read more about: Top Bank FDs in India

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

    CRISIL, ICRA and 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.

    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

    Ratings by ICRA

    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)
    • 2 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 1 year and 10 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

    1. 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.

    2. Can I apply for a company FD online?

      Yes, you can apply for a company FD online.

    3. What is the mode of interest payment in company FD?

      The mode of payment is either cumulative or non-cumulative.

    4. What is the minimum tenure offered?

      Minimum tenure offered is generally one year.

    5. How much additional interest rate can senior citizens earn?

      Senior citizens can earn up to 0.50% additional interest rates on their deposits.

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