Five corporate FDs offering up to 6.5% interest

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Fixed deposit (FD) is one of the most popular investment avenues in India due to its guaranteed return. But in recent times, all banks have slashed rates on FDs. Now, some non-banking finance companies (NBFCs) offer higher interest on their deposits than the commercial banks. That’s why it has been gaining investor attention. But one should consider some important factors before investing in corporate FDs. One of the main factors is safety of deposit. Various credit-rating firms, like CRISIL, ICRA, and CARE, assess the credit quality of these non-banking financial companies (NBFCs). Naturally, a high-rated company deposit with AAA or similar grade is always highly preferable.

Take a look at these AAA-rated NBFCs that offer best rates on fixed deposits:

Bajaj Finance

Bajaj Finance, a leading consumer finance company, is offering best interest rates on fixed deposits across tenures. FDs come in tenures ranging from 12 months to 60 months. For the five-year tenure, Bajaj Finance FD offers 6.5% interest for the cumulative option. One can open an account with a minimum investment of Rs 25,000.

ICICI Home Finance

ICICI Home Finance is next in the list. It offers deposits for tenures ranging from 12 months to 120 months. For a five-year tenure, the company offers 6.45% interest for the general public. One can open an account with a minimum investment of Rs 10,000.

HDFC

HDFC is also offering FD schemes for tenures ranging from 12 months to 120 months. Now they are offering 6.4% interest on 60-month deposit. One can open an account with a minimum investment of Rs 20,000.

Mahindra & Mahindra Financial Services

Mahindra & Mahindra Financial Services offers 6.45% interest on deposits made for 60 months. Deposits are available for tenors of 12 months to 60 months. One can open an account with a minimum investment of Rs 5,000.

Sundaram Finance

Sundaram Finance is one of the oldest NBFCs in India. The company offers deposits only for 12, 24 and 36 months. One can open an account with a minimum investment of Rs 10,000. The interest rate on the 36-month FD is 5.8%.

Both State Bank of India (SBI) and HDFC Bank are offering 5.30% interest rates on FDs for deposits below Rs 2 crore for tenure of three years to less than five years to the general public. This rate is much lower than the top rated best five corporate FDs.