Fixed Deposit Interest Rates Offered By Corporates
NBFCs such as Bajaj Finserv, DHFL offer option of opening a fixed deposit Corporate FDs tend to deduct TDS if annual interest exceeds Rs. 5,000 Risks involved in corporate fixed deposits are higher than in bank FDs
Fixed deposits (FDs) are not only offered by banks but also by companies. In fact, the interest rates offered on company fixed deposits are higher than those on bank fixed deposits. However, the risks involved in corporate fixed deposits are much higher than in bank FDs. While returns on bank FDs are assured, the interest rates on corporate fixed deposits depend on the profits posted by the companies. That is why experts advise investors to exercise caution when investing in company fixed deposits.
Non-banking finance companies such as Bajaj Finserv, Dewan Housing Finance Limited (DHFL) and Shriram Transport Finance Company Limited offer the option of opening a fixed deposit.
Given below are FD interest rates paid by Bajaj Finserv, DHFL and Shriram Transport Finance Company:
Bajaj Finserv
The FD interest rates according to Bajaj Finserv's website - bajajfinserv.in:
| Tenor in Months | Minimum deposit (in Rs.) | Cumulative | Non-Cumulative | |||
|---|---|---|---|---|---|---|
| Monthly | Quarterly | Half-yearly | Yearly | |||
| 12 – 23 | 25,000 | 8.00% | 7.72% | 7.77% | 7.85% | 8.00% |
| 24 – 35 | 8.15% | 7.88% | 7.93% | 8.00% | 8.15% | |
| 36 – 60 | 8.75% | 8.42% | 8.48% | 8.57% | 8.75% | |
| Special tenors scheme | ||||||
| 15 Months | 100,000 | 8.05% | 7.77% | 7.82% | 7.89% | 8.05% |
Dewan Housing Finance Limited (DHFL)
The FD interest rates according to DHFL's website - dhfl.com:
| Fixed Deposit for Individuals | |||||||
|---|---|---|---|---|---|---|---|
| Interest Rates for Single Deposit < Rs. 5 Cr. | |||||||
| Tenure (Months) | Cumulative | Non-Cumulsative | For Privilege Customers | Renewals | |||
| Monthly | Quarterly | Half Yearly | Yearly | Additional interest of 0.40% | Additional interest of 0.15% where, deposit is renewed on or before the maturity date | ||
| 12 | 8.15% | 7.85% | 7.90% | 7.95% | 8.15% | ||
| 13# | 8.15% | 7.85% | 7.90% | 7.95% | 8.15% | ||
| 14 | 8.25% | 7.95% | 8.00% | 8.05% | 8.25% | ||
| 18 $ | 8.30% | 8.00% | 8.05% | 8.10% | 8.30% | ||
| 24 | 8.40% | 8.10% | 8.15% | 8.20% | 8.40% | ||
| 36 | 8.70% | 8.35% | 8.40% | 8.50% | 8.70% | ||
| 40 | 8.75% | 8.40% | 8.45% | 8.55% | 8.75% | ||
| 48 / 60 | 8.70% | 8.35% | 8.40% | 8.50% | 8.70% | ||
| 72 / 84 | 8.70% | 8.35% | 8.40% | 8.50% | 8.70% | ||
| 96/ 108/ 120 | 8.30% | 8.00% | 8.05% | 8.10% | 8.30% | ||
Shriram Transport Finance Company
The FD interest rates according to Shriram Transport Finance Company's website - stfc.in:
| INTEREST RATES-ON FRESH DEPOSITS/RENEWALS (w.e.f. 15th Jun 2018) | |||||||
|---|---|---|---|---|---|---|---|
| NORMAL SCHEME | |||||||
| Non-Cumulative Deposits | Cumulative Deposit | ||||||
| Period (months) | Monthly % P. A | Quarterly % P. A | Half yearly % P. A | Yearly % P.A | Rate (P.A at | Effective Yield | maturity value |
| Monthly rests) | % P. A | for ? 5000/- | |||||
| 12 | 7.49 | 7.54 | 7.61 | 7.75 | 7.49 | 7.75 | 5,388 |
| 24 | 7.72 | 7.77 | 7.85 | 8 | 7.72 | 8.32 | 5,832 |
| 36 | 8.28 | 8.34 | 8.42 | 8.6 | 8.28 | 9.36 | 6,404 |
| 48 | 8.28 | 8.34 | 8.42 | 8.6 | 8.28 | 9.78 | 6,956 |
| 60 | 8.28 | 8.34 | 8.42 | 8.6 | 8.28 | 10.21 | 7,553 |
Corporate fixed deposits tend to deduct the TDS (tax deducted at source) if the annual interest exceeds Rs. 5,000. There is no capital gains tax on these deposits. (Also Read: Post Office Saving Schemes - Interest Rates On Nine Accounts Compared)
