HDFC Fixed Deposit

In terms of interest rates, HDFC deposits do not offer the highest interest rate, but, can be considered as relatively safe.

These deposits from India's largest housing finance company offer an interest rate of 7.50 per cent to 7.55 per cent, under the cumulative options, which include tenures of 15, 22, 30 and 44 months.

It must be noted that there are no tax benefits as far as company FDs are concerned and hence, the interest has to be added to the total income for the payment of Income Tax. Go for it if you are planning to invest large sums.

KTDFC

The Kerala Transport Development Finance Corporation (KTDFC) is not a AAA rated company. So, why are we mentioning the same?

This is simply because the company is one that is owned by the government of Kerala. At the moment you do not get an interest rate of 8.50 per cent, which makes this amongst the best in the business.

A one, two and three year deposit attracts an interest rate of 8.50 per cent. Senior citizens are entitled to an extra 0.25 per cent interest rate. We strongly recommend that you go for these deposits as they are the best in the business.

Mahindra and Mahindra Finance

These deposits also come with a strong pedigree as they are promoted by the Mahindra and Mahindra group. The FDs have a Crisil rating of 'FAAA'. Like HDFC, the company offers an interest rate of 7.50 to 7.55 per cent, across tenures ranging from 12-months to 60 months. The yield can go as high as 8.48 per cent over the tenure of 48 months. The minimum amount of deposit that one can invest is Rs 5,000. Senior citizens are entitled to an extra 0.25 per cent interest rate, over and above that mentioned.

Dewan Housing

The Ashray Deposits once offered the highest interest rate from among deposits. However, the maximum interest rates that one gets now is 8 per cent on a 48-120 months deposit. This may not be the best when compared to companies like KTDFC. However, the deposits can be considered as relatively safe. Go for them if you have already placed money in other deposits. Remember that company deposits are subject to a TDS if your interest income crosses Rs 5,000.

PNB Housing

PNB Housing is promoted by Punjab National Bank and hence these deposits are safe. These are also rated by Crisil with a FAAA, which ensures safety of capital and interest amount. These deposits offer a slightly lower interest rate, when compared to HDFC and Mahindra Finance. In fact, the interest rate on these deposits are placed at 7.25 per cent for both 12 and 24-months. This is not the best and you have better options that we have listed elsewhere in the articles. These too are AAA rated and very safe.

Bajaj Finserv

These company deposits come from a strong pedgiree as they are promoted by Bajaj Finserv. Like most other peers these are also AAA rated by Crisil and offer a high safety for timely payment of interest and principal amount.

These deposits compare very well with some of the other company deposits when it comes to interest rate and safety. The deposit interest rates are 8.05 per cent for 36 months to 60-months, which is probably among the best for a company of its pedigree. Other tenure tend to offer you lower interest rates.

Disclaimer

This article is strictly for informational purposes only. It is not a solicitation to buy, sell in FDs. Company FDs are not the safest instruments and there are cases of defaults in the past. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.