Top 6 “AAA” Rated Corporate Deposits For Investment In 2021

Fixed depositors are striving for the best or highest available returns on their deposits in the midst of banks' low-interest rates on fixed deposits. Similar to bank fixed deposits, corporate deposits, or company fixed deposits are term deposits provided by Non-banking financial companies (NBFCs) where you can park your money for a certain period of time at a predetermined interest rate. The best part of the corporate fixed deposits provides a higher interest rate than regular deposits of banks and as a result, can be a good bet for debt investors in the current falling interest rates scenario of bank fixed deposits.

However, one thing to keep in mind before investing in corporate fixed deposits is that, unlike bank deposits, corporate fixed deposits are not insured by the Deposit Insurance and Credit Guarantee Corporation, but are rated by various rating agencies based on the corporate's credit quality and ensures a level of deposit safety. It is recommended to invest in corporate fixed deposits rated "AAA," which lower your deposit risk but not completely. Here are six "AAA" rated corporate fixed deposits that can be considered for investment in 2021 for investors looking for better interest rates than bank fixed deposits.

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Crisil has given Mahindra Finance Fixed Deposits an FAAA rating, indicating a higher standard of deposit safety. This corporate deposit offers elderly people an extra 0.25 percent on Samruddhi Fixed Deposits and 0.35 percent to the company's employees. Mahindra Finance is now offering the below-listed interest rates on deposits and the latest rates are applicable from 20th September 2021.

Samruddhi Cumulative Scheme (Up to Rs 1 Cr)

Period in months	Interest p.a.(%)
12	5.50%
24	6.00%
36	6.30%
48	6.45%
60	6.45%

Samruddhi Non-Cumulative Scheme (Up to Rs 1 Cr)

Period in months	Interest p.a. (Monthly)	Interest p.a. Quarterly)	Interest p.a. (Half yearly)	Interest p.a. (Yearly)
12	4.95%	5.30%	5.40%	5.50%
24	5.45%	5.80%	5.90%	6.00%
36	5.75%	6.10%	6.20%	6.30%
48	5.90%	6.25%	6.35%	6.45%
60	5.90%	6.25%	6.35%	6.45%
Source: mahindrafinance.com

ICICI Home Finance Fixed Deposits

CRISIL has given ICICI HFC Fixed Deposits an FAAA/Stable rating, ICRA has given it an MAAA/Stable rating, while CARE has given it a AAA/Stable rating. Senior citizens can benefit from a 0.25 percent higher rate of interest on this corporate fixed deposit, which requires a minimum deposit of Rs 10,000. The following are the interest rates that are in force from August 23, 2021.

Tenure in months	Cumulative	Non-Cumulative
		Monthly Income Plan	Quarterly Income Plan	Yearly Income Plan
>=12 to <24	5.25%	5.10%	5.15%	5.25%
>=24 to <36	5.65%	5.50%	5.55%	5.65%
>=36 to <60	5.75%	5.60%	5.65%	5.75%
>=60 to <72	6.45%	6.25%	6.30%	6.45%
>=72 to <=120	6.65%	6.45%	6.50%	6.65%
Source: icicihfc.com

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For the last 27 years, HDFC Ltd. has maintained AAA ratings from two major credit rating agencies (CRISIL and ICRA) for its deposit scheme. The deposit scheme of the corporate provides the following competitive interest rates for a deposit amount of up to Rs 2 Cr.

Special Deposits (Fixed Rates)

Period	Monthly Income Plan	Quarterly Option	Half-Yearly Option	Annual Income Plan	Cumulative Option
33 Months	6.00%	6.05%	6.10%	6.20%	6.20%
66 Months	6.40%	6.45%	6.50%	6.60%	6.60%
99 Months	6.45%	6.50%	6.55%	6.65%	6.65%

Premium Deposits (Fixed Rates)

Period	Monthly Income Plan	Quarterly Option	Half-Yearly Option	Annual Income Plan	Cumulative Option
15 Months	5.60%	5.65%	5.70%	-	5.80%
22 Months	5.75%	5.80%	5.85%	5.95%	5.95%
30 Months	5.80%	5.85%	5.90%	6.00%	6.00%
44 Months	6.05%	6.10%	6.15%	6.25%	6.25%

Regular Deposits (Fixed & Variable Rates)

Period	Monthly Income Plan	Quarterly Option	Half-Yearly Option	Annual Income Plan	Cumulative Option
12-23 Months	5.50%	5.55%	5.60%	-	5.70%
24-35 Months	5.65%	5.70%	5.75%	5.85%	5.85%
36-59 Months	5.85%	5.90%	5.95%	6.05%	6.05%
60-83 Months	6.20%	6.25%	6.30%	6.40%	6.40%
84-120 Months	6.35%	6.40%	6.45%	6.55%	6.55%

Bajaj Finance Fixed Deposit

On deposits maturing in 36 to 60 months, Bajaj Finance Fixed Deposit provides the maximum interest rate of up to 6.50 percent to the general public and up to 6.75 percent to senior persons. Bajaj Finance has achieved CRISIL's FAAA/Stable and ICRA's MAAA stable ratings, ensuring the safety of your deposit.

Tenors (Months)	Regular Citizens	Senior Citizens
12-23	5.51% to 5.65%	5.75% to 5.90%
24-35	5.94% to 6.10%	6.17% to 6.35%
36-60	6.31% to 6.50%	6.55% to 6.75%
With effect from 12th May 2021. Source: bajajfinserv.in

Sundaram Finance Fixed Deposits

Sundaram Finance Fixed Deposits require a minimum deposit of Rs. 10,000/- per account and interest can be received through the RBI Electronic Clearing Service, NEFT, or cheques. Sundaram Finance deposits have been rated AAA for the past 30 years, indicating the safety of your capital. The below-listed interest rates are in force from August 08, 2021 for both regular and senior citizens.

Tenors (Months)	Senior Citizen		Others
	Monthly Interest Rate %p.a(FD)	Rate (% p.a at Quarterly rests for FD )	Monthly Interest Rate %p.a(FD)	Rate (% p.a at Quarterly rests for FD )
12	5.97	6	5.48	5.5
24	6.12	6.15	5.62	5.65
36	6.27	6.3	5.77	5.8

LIC HFL Sanchay Deposit Scheme

CRISIL has given LIC Housing Finance Limited's Sanchay Deposit Scheme an FAAA/Stable rating. The interest rates on public deposits up to Rs 20 crore are applicable from April 1, 2021, and are mentioned below. For deposits of Rs 20,000/- and above, but up to Rs 20 Crores on all tenors, senior persons would be entitled to an additional 0.25 percent p.a. interest rate.

TERM	INTEREST RATE P.A. FOR MONTHLY OPTION	INTEREST RATE P.A. FOR YEARLY OPTION
	Non-Cumulative Deposits	Cumulative & Non-Cumulative Deposits
1 YEAR	5.10%	5.25%
18 MONTHS	5.35%	5.50%
2 YEARS	5.50%	5.65%
3 YEARS	5.60%	5.75%
5 YEARS	5.60%	5.75%