With RBI’s monetary policy announcement, bank interest rates have come down below the 7 per cent mark. The State Bank of India (SBI) has also reduced interest rates on Fixed Deposits (FDs), extending a maximum of 6.4 per cent. The way interest rates have fallen, you need to search for new options to invest your hard earned money. Among the available options, company FDs can be one such investment tool, but a comparative study is needed prior to going ahead. It should be ensured that they belong to AAA category ratings as these firms offer better interest rates. Here are few such AAA rated companies offering better interest rates are given here.
1. PNB Housing Finance belongs to AAA rated category, as it offers an interest rate of over 8 per cent on its 5-year deposits. The housing finance company’s 1-year tenure deposit gives the interest rate of 8.10 per cent and on two-year deposit, you can earn the interest of 8.15 per cent.Read more ↓
2. HDFC Ltd is also AAA rated company offering an interest rate of 7.62 per cent across tenures. If you go for 1, 2, 3, 4 and 5 year deposit, you will be able to earn an interest of 7.62 per cent. It comparatively offers the lowest interest rates among all the deposits of NBFCs and Housing Finance companies, but deposits are considered safe.
3. Mahindra and Mahindra Financial Services offers an interest rate of 8.40 per cent on 3, 4 and 5 year tenure investment. Since the deposits are rated in AAA category, you can look for this option. The Financial Services company is stated to offer both a cumulative and a non-cumulative deposit scheme.
4. Bajaj Finance is another AAA rated finance company that offers 8 per cent interest rate on its 1-year tenure deposit, 2-year tenure offers an interest rate of 8.05 per cent, while the 3-year tenure offers 8.35 per cent interest rate. Bajaj Finance fixed deposits are also reported to be well rated, as they come from a very strong promoter background.
5. LIC Housing Finance is also AAA rated FD, offering an interest rate of 7.95 per cent on its 3 and 5 year deposits. If you want to invest your money for 2 years, you will get an interest rate of 7.90 per cent. Here you can see that the interest rates on deposits are comparatively more than the BSI offers. Notably, NRIs can also invest in the company with a maximum tenure of 3-years.