The risks involved in corporate fixed deposits are much higher than in bank FDs, financial analysts sayFixed deposits or FDs are secure financial instruments offered by banks and non-banking financial companies (NBFCs), which fetch guaranteed returns.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, financial analysts say.
While returns on bank FDs are assured, the interest rates on corporate fixed deposits depend on the profits posted by the companies.Leading banks like State Bank of India (SBI), HDFC Bank, ICICI Bank and non-banking finance companies such as Bajaj Finserv and Mahindra Finance, among others offer the facility of opening a fixed deposit (FD).State Bank of India (SBI)The following FD interest rates are applicable on deposits below Rs 2 crore, according to the bank's website - sbi.co.in:TenorsRevised For Public w.e.f.
22.02.2019Revised for Senior Citizens w.e.f.
22.02.20197 days to 45 days5.75%6.25%46 days to 179 days6.25%6.75%180 days to 210 days6.35%6.85%211 days to less than 1 year6.4%6.9%1 year to less than 2 year6.8%7.3%2 years to less than 3 years6.8%7.3%3 years to less than 5 years6.8%7.3%5 years and up to 10 years6.85%7.35%(Source: sbi.co.in)HDFC BankThe following FD interest rates are applicable on deposits below Rs 1 crore with effect from November 6, 2018 according to the bank's website - hdfcbank.com:PeriodInterest rate onFD less thanRs.1 CroreGeneral publicSenior citizen7 - 14 days3.50%4.00%15 - 29 days4.25%4.75%30 - 45 days5.75%6.25%46 - 60 days6.25%6.75%61 - 90 days6.25%6.75%91 days - 6 months6.25%6.75%6 months 1 day- 6 months 3 days6.75%7.25%6 months 4 days6.75%7.25%6 months 5 days- 9 months6.75%7.25%9 months 1 day- 9 months 3 days7.10%7.60%9 months 4 days7.10%7.60%9 months 5 days - 9 months 15 days7.10%7.60%9 months 16 days7.10%7.60%9 months 17 days < 1 Year7.10%7.60%1 Year7.30%7.80%1 year 1 day - 1 year 3 days7.30%7.80%1 year 4 days7.30%7.80%1 year 5 days - 1 Year 15 days7.30%7.80%1 Year 16 days7.30%7.80%1 year 17 days - 2 Years7.30%7.80%2 years 1 day - 2 Years15 days7.40%7.90%2 Years16 days7.40%7.90%2 years17 days - 3 Years7.40%7.90%3 years 1 day - 5 years7.25%7.75%5 Years 1 day - 8 Years6.50%7.00%8 Years 1 day - 10 Years6.50%7.00%(Source: hdfcbank.com)ICICI BankThe following FD interest rates are applicable ondeposits below Rs1 crore, according to the bank's website - icicibank.com:Rate of Interest (% p.a.) w.e.f November 15, 2018Tenure PeriodGeneralSenior Citizen7 days to 14 days4%4.5%15 days to 29 days4.25%4.75%30 days to 45 days5.5%6%46 days to 60 days6%6.5%61 days to 90 days6.25%6.75%91 days to 120 days6.25%6.75%121 days to 184 days6.25%6.75%185 days to 289 days6.5%7%290 days to less than 1 year6.75%7.25%1 year to 389 days6.9%7.4%390 days to 2 years7.1%7.6%2 years 1 day up to 3 years7.5%8%3 years 1 day up to 5 years7.25%7.75%5 years 1 day up to 10 years7%7.5%5 years Tax saver FD (max up to Rs.
1.50 lakh)7.25%7.75%(Source: icicibank.com)Bajaj FinservThe FD interest rates according to Bajaj Finserv's website - bajajfinserv.in:Tenor in MonthsMinimum deposit (in Rs.)CumulativeNon-CumulativeMonthlyQuarterlyHalf-yearlyYearly12 2325,0008.00%7.72%7.77%7.85%8.00%24 358.15%7.88%7.93%8.00%8.15%36 608.75%8.42%8.48%8.57%8.75%Special tenors scheme15 Months1,00,0008.05%7.77%7.82%7.89%8.05%Mahindra FinanceThe following FD interest rates are applicable for online investors, according to Mahindra Finance's website - mahindrafinance.comDhanvruddhi Non-Cumulative Scheme*Period(Months)Interest p.a.(Yearly)Interest p.a.(Monthly)158.30%7.75%208.35%8.00%278.60%8.10%339.00%8.50%409.00%8.50%Minimum Amount50,000 plus50000 plusDhanvruddhi Cumulative Scheme*Minimum Amount (Rs).TenureAmount Payable(Rs.)Interestp.a**EffectiveYield p.a*Rs.5,0001555278.30%8.43%2057208.35%8.63%2760248.60%9.10%3363429.00%9.76%4066699.00%10.01%Fixed deposits or FDs are also offered by post offices.
Post office time deposit (TD) or Fixed Deposit (FD) account offers interest rates across four maturities: one year, two years, three years, and five years, according to India Post's official website- indiapost.gov.in.