New Delhi. Fixed Deposit (FD) is considered very reliable for investment. Company FD interest rates are increasing faster than bank deposits but the risk of investing in these deposits should be looked at. They should invest in AAA-rated companies as higher ratings are considered an indicator of higher income and capital protection.
Investors should calibrate their risk and return expectations as higher the return, higher the risk. Bank deposits are covered by Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance up to Rs 5 lakh in case of bank deposits, which is not the case with company deposits.
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AAA and AA-rated company deposits
company highest interest rate
Sundaram Home Finance – 7.65 per cent
Bajaj Finance – 7.60 percent
HDFC Limited – 7.50 percent
Mahindra Finance – 7.40 percent
LIC Housing Finance – 7.40 percent
Sundaram Finance – 7.30 percent
ICICI Home Finance – 7.10 percent
Shriram City Union Finance – 8.00%
Shriram Transport Finance – 8.00 percent
PNB Housing Finance – 7.55 percent
read this also- Explainer: Which FD is better to invest in fixed or floating rate? In which and why will you get more profit
Gaurav Aggarwal, Senior Director, Paisabazaar, says that before opening a company FD, investors should compare the FD interest rates offered by Small Finance Banks (SFB) and private sector banks. Some of these scheduled banks are offering annual yields of 7.5% and above. By opening FDs with these banks, investors will get the same yield at much lower risk.
Tags: Bank FD, FD Rates, Fixed deposits, Money Making Tips
FIRST PUBLISHED : November 19, 2022, 14:43 IST