Fixed Deposits

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Corporate fixed deposit is a deposit in company for a fixed rate of return over a fixed period of time. The rate of interest is determined by the tenure of the deposit as well as other factors. NBFC’s, Housing Finance & Manufacturing companies accept such deposits. The corporate fixed deposit is governed by section 58A of the Companies Act.Company fixed deposit is a good option for investment as they provide higher rate of interest compared to bank deposits.

They are a good source of regular income by means of monthly, quarterly, half-yearly, or yearly interest incomes.Performance of the company should be reviewed from time to time and at the maturity of deposit, by analyzing Balance Sheet & Share Prices movement. This will be helpful in deciding whether the deposit should be renewed or not.

  1. Higher rates of interest.
  2. Flexible tenure ranging from 1 year to 10 years.
  3. Senior citizen benefits available.
  4. Prematurity clause is available.
  5. Loan Facility Available.
  6. Nomination facility available.
  7. No TDS in case the interest is only Rs. 5000 in one financial year.
  8. Regular interest incomes – Monthly, Quarterly, Half-yearly, or Yearly
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ABBREVIATIONS:   SC = Sr. Citizen,   C = Cumulative,   NC = Non-Cumulative,   M = Monthly,   Q = Quarterly,   H = Half Yearly,   Y = Yearly, EE = Employee,   SH = Share Holder.

NBFC / Corporate Fixed Deposits

Institute / Company (Credit Rating) 12 24 36 60 SC Mode Yield
HDFC Ltd.
CRISIL - ICRA: AAA
7.35% 7.35% 7.35% 7.35% 0.25% M/Q/H/Y 9.15
ICICI Home Finance Ltd
CRISIL/CARE/ICRA: AAA
7.70% 7.95% 8.05% 8.10% 0.25% M/Q/Y 11.95
Mahindra & Mahindra Fin. Ltd.
CRISIL: FAAA
7.75% 8.10% 8.45% 8.45% 0.25% Q/H/Y 10.00
PNB Housing Finance Ltd.
CRISIL: FAAA, CARE: AAA
8.30% 8.30% 8.40% 8.45% 0.25% M/Q/H/Y 12.50
Bajaj Finance Ltd.
CRISIL-ICRA : AAA
8.00% 8.15% 8.60% 8.60% 0.35% M/Q/H/Y 10.42
LIC Housing Finance Ltd.
CRISIL : FAAA
7.50% 7.55% 7.60% 7.60% 0.25% M/Y 7.95
Shriram Transport Finance Co. Ltd
CRISIL: FAAA ICRA: MAA+
8.25% 8.50% 9.00% 9.25% 0.25% M/Q/H/Y 11.13

What is Fixed Deposit – Company Fixed Deposit – NBFC /Govt. Company Fixed Deposit?

The deposit kept by investors with companies for a fixed period carrying a fixed rate of interest is called Company Fixed Deposit. Manufacturing – Service Companies, Financial institutions and Non-Banking Finance Companies (NBFCs) accept deposits from investor.

Who can Invest?

Investor can be Individual, Hindu Undivided Family (HUF), Companies, Minors (With the Guardian), NRI, Corporate / Companies, Partnership Firm, Trust, Charitable Trusts, Cooperative Society.

NBFC’s which accepts deposits are:

  • Bajaj Finance Ltd
  • DHFL Aashray Deposit Scheme
  • EXIM BANK OF INDIA
  • GRUH Finance Ltd
  • HDFC LIMITED
  • HUDCO
  • KTDFC Ltd
  • LIC HOUSING FINANCE LTD
  • Mahindra and Mahindra Financial Services Ltd
  • NATIONAL HOUSING BANK
  • PNB Housing Finance Ltd
  • ICICI Housing Finance Ltd
  • Shriram Transport Finance UNNATI Scheme
  • Shriram City Union Finance Ltd.
  • SIDBI
  • Sundaram Finance.

Company Fixed Deposit intermediary (IFA) is also known as Company Fixed Deposit Advisors, Company Fixed Deposit Distributors, Company Fixed Deposit Brokers, Company Fixed Deposit Consultants, Company Fixed Deposit Agents.