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:
Dewan Housing Finance Limited (DHFL)
The FD interest rates according to DHFL's website - dhfl.com:
Shriram Transport Finance Company
The FD interest rates according to Shriram Transport Finance Company's website - stfc.in:
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)
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