Companies Fixed Deposits That Offer Highest Interest Rates In India

Bank interest rates have no longer become attractive and the interest rates have dropped so low, it just about beats inflation. Post office small schemes have also seen a sharp drop in interest rates. Last month the RBI cut interest rates once again and a few banks have cut interest rates on fixed deposits. We have selected some of the fixed deposits that are safe and offer the highest interest rates. Take a look. Before we analyze the FD of this company, let us tell you that DHFL Ashray is among the top 5 housing finance companies in the country. It is popularly known as Dewan Housing. We are telling you this because company FDs are not safe. However, DHFL Ashray is rather safe, because it has also been rated AAA by CARE.The company is pretty sound and also runs an asset management company as well. Advertisement If you place the money for 1-year, you get an interest rate of 8.25 per cent, while most banks offer you around 7.25 per cent. A 2-year FD offers you an interest rate of 8.50 per cent, whereas the 3-year FD gives you an interest rate of 8.60 per cent. This is way higher than what most banks in the country offer and is among the highest interest rate on FDs, from quality companies. Senior citizens are entitled to an extra 0.25 per cent interest rate. For a 3-year deposit, it offers you a good yield and hence go for the 3-year option. So, this is among the highest and best interest rates on FDs. Shriram Transport is one of the largest commercial vehicle finance in the country. In fact, the company is the largest asset financing NBFC in the country, which started operations way back in 1979. The company also provides freight bill disounting and co-branded credit cards. For the last few years the company has seen its profits rise and the company also has been paying dividends for many years now. The companys fixed deposits are CRISIL-FAAA rated, making them relatively secure. The companys FD offers an interest rate of 8.50 per cent on a 5-year deposit. The 4-year deposit offers you an interest rate of 8.45 per cent, while the three year deposit offers you an interest rate of 8.25 per cent. It is important to note that there is a TDS that would be applicable on the deposits. Company deposits attract a TDS, if the interest income is above Rs 5,000. So, make sure you factor that point, when you take into consideration yields. Bajaj Finance is again a AAA rated fixed deposit. The FDs are from the Bajaj stable and are hence very safe. The company offers you an interest rate of 8.25 per cent across tenures. The minimum amount of deposit that you can place is Rs 75,000. We need to mention that you get an additional interest of 0.25 per cent, if you place deposits above Rs 1 crore. This again is a very safe deposit and can be considered by investors, as banks are currently not offering an interest of 8.25 per cent on their deposits. KTDFC, is a government of Kerala owned enterprise. So, the deposits are relatively safe, since they are backed by the government of Kerala. For a period of 1, 2 and 3 years, the company offers an interest rate of 8.25 per cent, while for 1-year, it stands reduced to 8.25 per cent. There is no need to check the ratings, since the FDs are backed by the government of Kerala. Mahindra and Mahindra Financial Services is not offering very high interest rates like the others. In fact, until a few months ago, the firm was giving very high interest rates. The company is offering an interest rate of 7.90 per cent on 1-year, 8 per cent on two years and 8.05 per cent on the other tenures. The fixed deposits are extremely safe and have very little chances of a default. Please note that company FDs are risky instruments. The article is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author do not accept culpability for losses and/or damages arising based on information in this article.