High FD interest rates: Term deposits by corporate offer up to 8%

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If you are looking for higher interest rates on fixed deposits (FDs), corporate fixed deposits from non-banking financial companies (NBFCs) and housing finance companies (HFCs) can be seen as an attractive option. These deposits offer higher returns when compared to major private and public sector banks. However, it is crucial to assess the risks involved before investing.

A key method to evaluate the risk is by examining the credit ratings assigned by rating agencies such as CRISIL, ICRA, and CARE. These agencies evaluate the financial health of the NBFC or HFC issuing the corporate FDs, and their ratings reflect the likelihood of default on interest and principal repayments.

Also Read: With guaranteed returns, do FDs offer a good investment bet to investors? Experts answer

Higher-rated corporate FDs are generally safer, with lower chances of defaults. Therefore, it's important for depositors to carefully study these ratings to make informed decisions.

Here are some corporate fixed deposits that currently offer the best interest rates:

1-year

tenure

3-year

tenure

5-year

tenure

Source: Paisabazaar, data as on 22nd May 2024

When investing in corporate fixed deposits, it is essential to consider several key factors to make informed decisions. First and foremost, check the credit rating of the issuer, as choosing corporate FDs from companies with high credit ratings minimises credit risk.

Also Read: Want to deposit money for 5 years? These 6 banks offer highest interest rate on long term fixed deposits

Next, think about the tenure of the fixed deposit and ensure it aligns with your financial goals to match your investment period with your future financial needs. Comparing interest rates and payout frequencies among