• 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. CRISIL FAAA 6.15%
    Mahindra Finance Ltd. CRISIL FAAA 6.45%
    Shriram City Union Finance Ltd ICRA MAA+ 8.40%
    PNB Housing Finance Ltd. CRISIL FAAA 6.70%
    LIC Housing Finance Ltd CRISIL FAAA 5.75%
    HDFC LTD ICRA MAAA 6.25%

    *The interest rates mentioned here tend to vary at the respective company’s discretion. The rates mentioned here are for cumulative deposits as of October 2020

    • The highest company FD rate is offered by Shriram City Union Finance Ltd. at 8.40% p.a
    • Many companies offer a higher Fixed Deposit rate to senior citizens.

    Top Company FD Rates Key Highlights

    • Range of minimum deposit: Rs.5,000-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

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