3 HFCs Offering High Interest On FDs Are Good To Invest In 2023

Fixed Deposits (FDs) are a type of fixed-income product that guarantees investors consistent returns. Fixed deposits have a slow and steady rate of return. In the past few months, the FDs are getting strong traction from debt investors. Since May 2022, RBI has hiked the repo rate 5 times, the most recent hike was in December 2022. Due to the repo rate, the banks, as well as various NBFCs including HFCs have followed the rate hike trend and started transferring the interest rate hike benefits to customers. The NBFCs are providing better interest rates than the Banks despite the Banks' increases.

As a result of rate increases by various corporate FDs, risk-averse depositors are pouring into NBFCs for good returns. Investors are drawn to these corporate FDs for for risk-free, safe, and predictable returns. Three Housing Finance companies namely PNB Housing Finance, LIC Housing Finance, and Manipal Housing Finance Syndicate offer the highest interest rates on their Fixed Deposits.

1. PNB Housing Finance

PNB Housing Finance (PNB Housing) is one of the leading housing finance companies in India registered with National Housing Bank (NHB). The company is promoted by Punjab National Bank (PNB), a leading Public Sector Bank. The company commenced its operations on November 11, 1988, with this, the company has over three decades of specialised experience in housing finance. With a wide network of branches across the nation, the company offers its customers easy access to its financial services both loans and deposits from the company.
The company offers Deposit facilities with two options, Cumulative & Non-Cumulative. Under both the deposits option, the tenure for the deposit ranges from 12 months to 120 months. The maximum interest rate on the deposit is 7.40 percent and the minimum interest rate is 6.78%. 

Under the cumulative deposit option, the company offers a minimum 7 percent interest and maximum 7.40 percent interest for a maturity period of 12 months to 120 months.

Cumulative Option Interest Rate for Deposit Up To Rs 5 Crore

Tenure (Months)	ROI (p.a.)
12 - 23	7.00%
24 - 35	6.80%
36 - 47	7.55%
48 - 59	7.40%
60 -71	7.40%
72 - 84	7.40%
120	7.40%

Non-Cumulative Option Interest Rate for Deposit Up To Rs 5 Crore

Tenure (Months)	Monthly ROI	Quarterly ROI	Half Yearly ROI	Annual ROI
12 - 23	6.78%	6.82%	6.88%	7.00%
24 - 35	6.57%	6.63%	6.69%	6.80%
36 - 47	7.30%	7.34%	7.41%	7.55%
48 - 59	7.16%	7.20%	7.26%	7.40%
60 -71	7.16%	7.20%	7.27%	7.40%
72 - 84	7.16%	7.20%	7.27%	7.40%
120	7.16%	7.20%	7.27%	7.40%

Source - pnbhousing.com

2. LIC Housing Finance

One of the largest housing finance companies in India with a presence throughout the country is LIC Housing Finance Ltd. With cumulative and non-cumulative deposit options, the company offers FDs under the name of Sanchay Deposit Scheme. The scheme is secure as CRISIL has given it a AAA/Stable rating, which is the best rating a deposit instrument from a deposit-taking entity can receive. With a fixed deposit with LIC Housing Finance, you can take a Loan against the Deposit up to 75 percent of the Deposit Amount.

The company offers interest rates up to 7.50 percent on public deposits up to Rs 20 Crore under the cumulative deposits and non-cumulative deposit options. The company offers investment tenure of 1 Year, 18 Months, 2 years, 3 years, and 5 years. Interest is compounded annually and paid concurrently with the principal amount at maturity, after deducting any applicable taxes. The company offers an additional benefit of 0.25% p.a. in interest rate to senior citizens for deposits up to Rs. 20 Crore across the tenures. The company under this option offers maximum 7.50 percent interest and minimum 7 percent interest for tenures ranging from 1 to 5 years. Under the non-cumulative deposit option, Monthly and Annual interest payment options are available for tenure starting 1 year to 5 years.
 
Cumulative Option for deposits up to Rs 20 Crore

Tenure	ROI (p.a.)
1 Year	7.00%
18 Months	7.10%
2 Years	7.35%
3 Years	7.50%
5 years	7.50%

Non-Cumulative Option for deposits up to Rs 20 Crore

Tenure	Monthly ROI	Yearly ROI
1 Year	6.80%	7.00%
18 Months	6.90%	7.10%
2 Years	7.10%	7.35%
3 Years	7.25%	7.50%
5 years	7.35%	7.50%

Source - lichousing.com

3. Manipal Housing Finance Syndicate Ltd. (MHFSL)

Manipal Housing Finance Syndicate (MHFSL) is a National Housing Bank (NHB)  registered Housing Finance Company. The company is jointly promoted by the erstwhile Syndicate Bank which is now Public Sector Canara Bank on its amalgamation. The fixed deposit programme of the company has been assigned ACUITE A' Rating by ACUITE rating. MHFSL offers deposit products at attractive rates of interest. The company offers FD under Cumulative and Non-Cumulative options for deposit tenure from 1 year to 5 years. Under the Cumulative FD scheme, the company offers maximum 7.75 percent and minimum 7.25 percent for a deposit maturity range between 1 to 5 years. The deposit tenure ranges between 1 to 5 years under the non-cumulative deposits. 

Cumulative Income Plan Interest Rates

Tenure	ROI (p.a.)
1 Year	7.75%
2 Years	7.75%
3 Years	7.75%
4 Years	7.25%
5 Years	7.25%

Non-Cumulative Income Plan Interest Rates

Tenure (Months)	Monthly ROI	Quarterly ROI	Half Yearly ROI	Annual ROI
1 Year	7.50%	7.55%	7.60%	7.75%
2 Years	7.50%	7.55%	7.60%	7.75%
3 Years	7.50%	7.55%	7.60%	7.75%
4 Years	7.00%	7.05%	7.10%	7.25%
5 Years	7.00%	7.05%	7.10%	7.25%

Source - manipalhousing.com