Company FD rates: Muthoot Capital, Manipal Housing offer up to 8.95%; check the rates offered by 10 firms
Company fixed deposits (FDs) also known as Corporate Fixed deposits, can provide investors with meaningful fixed returns over a predetermined period. Still, it is vital to note that company fixed deposits carry issuer-specific credit and liquidity risks. This makes it important for aspiring investors to carefully analyse and assess more than just the headline interest rate before investing.
As per data compiled by Paisabazaar, Muthoot Capital Services offers the highest interest rate among prominent financial institutions. The firm is offering 8.95% per annum for a 3-year (i.e., 36-month) deposit. On similar lines, Manipal Housing Finance Syndicate offers up to 8%, whereas Bajaj Finance offers up to 7.75%. With these essentials in mind, let us take a look at the detailed table.
Muthoot Capital Services offers the highest rate in the table at 8.95% for a three-year deposit. Its rates for one-year and five-year deposits stand at 7.90% and 8.50%, respectively. Manipal Housing Finance Syndicate offers 8% for one-, two- and three-year deposits.
Bajaj Finance offers 7.75% for deposits with tenures ranging from 31 to 60 months. Shriram Finance offers 7.50% for three- to five-year deposits, while Can Fin Homes offers the same rate for a 36-month tenure.
Senior citizens get an additional interest
Senior citizen investors generally receive an additional 0.25-0.50 percentage point over the applicable regular interest rate. Shriram Finance offers an additional 0.50%, while Sundaram Home Finance and Can Fin Homes offer up to 0.50%, depending on the applicable terms.
Shriram Finance also provides an additional 0.05% per annum for aspiring women investors and 0.15% per annum on eligible renewals of matured deposits, as per the compiled data. Furthermore, for PNB Housing Finance, the 0.25% senior-citizen benefit is applicable to deposits up to ₹1 crore.
Given that the offered rates may appear lucrative, investors should still be careful when analysing the issuer’s credit rating, financial position, deposit tenure, premature withdrawal rules, and long-term tax implications. These aspects underscore that a higher interest rate does not necessarily indicate a better investment, as company FDs also carry credit risk and differ slightly from bank deposits.
5 things to check before investing in company FD
With the above in mind, here are 5 important points to consider before applying for a company FD.
In summary, before investing in company/ corporate FDs, it is wise to seek professional guidance from a certified financial advisor and pay heed to the above-mentioned aspects to ensure the investment decision is sound and aligns with your long-term financial goals.
Disclaimer: Company fixed deposits carry issuer-specific credit and liquidity risks. Interest rates and terms may change. Investors should verify the latest rates, ratings and applicable conditions directly with the respective issuer and consult a certified financial advisor before investing.
