You all must have started FDs, do you also do corporate FDs? Today in this post we will know what is corporate FDs and which are the best corporate FDs of 2024.If you like investing but you invest mostly in funds, then today we will tell you about the second group of funds, corporate funds.Corporate funds give you higher interest rates than regular funds. Regular fund which you get from any public sector or private sector bank.Whereas corporate funds are available to you from Housing Finance Company or NBFC which is also called Non-Banking Financial Company.
Pros and Cons of Corporate FDs
The interest rate in corporate FD is also higher than normal FD. But corporate FD is not like any FD taken from public or private sector, it is not insured by DICGC.Therefore, before taking FDS from any NBFC, definitely check its rating. There are some agencies like CRISIL, CareEdge, ICRA which give rating to the FDs issued by NBFCs. Corporate funds which have higher rating means they are better and more secure.
Manipal Housing Finance Syndicate Limited.
This FD gives you interest rate of 8.25%-7.75% in 1-5 years. This NBFC has been given a rating by ACUITE i.e. Acuite rating & Research Limited. A rating means that the NBFC is completely safe. Provides timely service and hence the chances of wasting your money are also less.These funds give an interest rate of 8.25% in 3 years of investment and 7.75% in 4th & 5th years.
Shriram Transport Finance Company Limited.
In this fds, general public gets interest rate of 7.59% to 8.47% in 5 years. And senior citizens get interest rates ranging from 8.09%-8.95%. This NBFC also gives you 0.25% extra interest when you renew your FDS on maturity.
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ICRA has given a rating of AA+ to this NBFC and India Rating and Research has also given a rating of AA+. The AA+ rating means that this NBFC is completely safe and there are less chances of losing your money. You get an interest rate of 7.59% in the first year and 8.47% in 5 years.
Bajaj Finance Limited
It offers interest rates of 7.60%-8.60% to the general public on 1-5 year bonds and 7.60%-8.85% to senior citizens.This NBFC has been given AAA rating by CRISIL and ICRA. This rating means that you will get your interest on time and this NBFC has the highest credit quality. There is less risk of losing your money. This NBFC is offering interest rates of 7.40% and 7.55% in the first 2 years. Whereas 8.05 percent interest is being given in the remaining 3 years.
Muthoot Capital Service Limited
The general public gets interest rates of 7.21-8.38% on FDs of 1-5 years. Whereas senior citizens get interest rates of 7.21-8.88%. This NBFC has been given A+ rating by CRISIL. CRISIL’s A+ rating means that this FD will give you interest on time and your principal amount will also remain satisfactory. You get 7.21% interest on 1 year FD, 8.07% interest on 3 year FD and 8.38% interest on 5 year FD.
PNB Housing Finance Limited
It offers interest rates of 7.00-7.77% to the general public on FDs of 1-5 years. Whereas senior citizens are given interest rates of 7.25%-7.95%. It has received AA rating by CRISIL and CareEdge Rating Agency. As far as your money is concerned, you will get your interest and principal amount from NBFC timely and this also reduces the risk of losing your money.
