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Earn interest up to 7.75% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)

What is a Corporate Fixed Deposit ?

A Corporate FD is an investment option provided by financial institutions and non-banking financial companies (NBFCs). It is a term deposit held for a fixed period at a fixed interest rate. A Corporate FD has a variable tenor, allowing you to pick the time duration of your preference. Investing in a Corporate FD is one of the best investment alternatives as it gives higher returns. However, in order to make your investment more beneficial, it is imperative to choose the right organization. You can do so by comparing Company FD rates , tenor, and other benefits offered by institutions so as to select the best Corporate FD scheme and avail the best Corporate FD rates to suit your needs. 

Key Features and Benefits of a Corporate FD

People invest in order to earn larger profits in the future, and a Corporate FD will provide you with the same.

 

 The following are some of the key features and benefits of investing in a Corporate FD :

Benefits 

Key Features

  • Regular Interest Payment

     

    By investing in a Corporate FD , you will be able to receive interest rate payments as per your preference. This makes it an excellent choice to gain consistent income.

  • Guaranteed Profits

     

    Corporate FD from NBFCs like Bajaj Finance are guaranteed by CRISIL and ICRA, two well-known credit rating agencies. Bajaj Finance Corporate FD is rated FAAA by CRISIL and MAAA by ICRA, indicating that it is safe and reliable.

  • Loan on Corporate Fixed Deposit 

     

    In case of any financial emergency, you can use your Corporate FD as collateral and take out a loan instead of withdrawing your funds before maturity and incurring a penalty.

  • Corporate FD is a low-risk investment that is unaffected by market volatility.

  • NBFCs provide simple processes to liquidate your fixed deposits.

  • Interest is paid both cumulatively and non-cumulatively on company FD .

  • Many NBFCs allow for unrestricted early withdrawals.

  • Senior citizens are provided with additional interest rate payments

Top Corporate FDs

In order to choose the right Corporate FD , you must be well-informed about an organization’s offered interest rates. 

Here’s a closer look at the latest Corporate FD rates which you can refer to comprehend better:

Financial Institution

Rate of Interest (Per annum)

Additional Interest Rate for Senior Citizens

CRISIL/ICRA Rating

Bajaj Finance Limited

Between 6.20%-7.50%

0.25%

CRISIL-FAAA

ICRA-MAAA

PNB Housing Finance Ltd

Between 6.50% -7.30%

0.25%

CRISIL-FAA+

ICICI Home Finance

Between 5.25%-6.90%

0.25%

CRISIL-FAAA

ICRA-MAAA

LIC Housing Ltd

Between 5.95%-6.95%

0.25%

CRISIL-FAAA

Muthoot Capital Services Ltd

Between 6.25%-7.25%

0.25%

CRISIL-FA+

Sundaram Home Finance

Between 6.00%-7.00%

0.50%

CRISIL-FAAA

ICRA-MAAA

HDFC Ltd

Between 6.15%-6.80%

0.25%

CRISIL-FAAA

ICRA-MAAA

Disclaimer: Interest rates are valid as of 29-08-2022 and are subject to change as per the financial institution’s policies

Bajaj Finance Corporate FD Benefits

Bajaj Finance is one of the greatest companies to invest in Corporate Fixed Deposits in India. It offers various benefits that increase the value of the investment.

 

Here are the details of the Bajaj Corporate FD :

Higher Interest Rates

Bajaj Finance offers attractive interest rates on a  Corporate FD to guarantee that they are the best fit for you. The duration you choose affects the rate of interest of the Corporate FD. Longer the tenor, the higher the company FD rate.

Minimum Investment Amount 

You are not required to invest a large sum. With a Bajaj Finance Corporate FD, you can start investing with a minimum value of Rs. 15,000. 

Flexible Tenor

You can choose the tenor of your Corporate FD as per your requirements, as the organization offers a flexible tenor from 12 months to 5 years. 

Hassle-Free Experience

Since the Bajaj Corporate FD follows a digital process, you will have a seamless experience throughout the procedure. 

Dedicated Customer Officials

Skilled and experienced customer care representatives to guide you through any difficulty or clarify doubts concerning your Corporate FD. 

Eligibility Criteria for Company Fixed Deposits

Entities eligible for investing in a Corporate FD are as follows:

 

  • An individual or NRI above 18 years

  • Members of HUF (Hindu Undivided Family)

  • Partnership Firms

  • Family Trusts

  • Corporations

  • An Association

  • Educational Institutions

  • Societies 

  • Clubs

Tax on Corporate FDs

Interests earned on a Corporate FD issued by HFCs/NBFCs are taxable as per the law. However, the investor is only required to pay tax if the yearly interest income from the deposit exceeds Rs. 5,000.

 

Here’s a closer look at different TDS rates for a Corporate FD 

  • According to a new regulation issued by the Ministry of Finance on May 14, 2020, if the interest earned is above Rs. 5,000, a 7.5% TDS is applicable.

  • If your income exceeds Rs. 40,000, a 10% TDS deduction is applicable on the earned interest rate payments. 

  • For senior citizens, the income restriction is Rs. 50,000.

  • When the FD interest earned exceeds Rs. 5 Lakhs and Rs. 10 Lakhs, an additional TDS is payable. The rates are estimated to be 10% and 20%, respectively. This is in addition to the TDS provisions outlined in the 1961 Income Tax Act.

  • The applicable TDS rates change depending on the customer's category. For example, the imposed TDS rate for an Indian resident is 10% of the interest earned, whereas the rate for a non-resident Indian is 30% of the interest earned.

  • It also relies on the provided documentation. The tax rate is greater if you haven't submitted your PAN number.

  • The interest on such accounts is tax-deductible at a rate of 20% for Indian residents and above 30% for non-resident Indians. Non-resident Indians may also be subject to additional surcharges and cess taxes.

How to Choose a Corporate FD?

Before selecting a Corporate FD, there are some important factors that you must consider. They are listed below:

Background of the Organization

It is critical to research the history of the firm with whom you choose to create a Corporate FD. You should check to see if the business has a good track record of satisfied clients. It will assist you in determining its creditworthiness. Choose a company with an excellent market reputation in order to avoid a risky investment. 

    History of Repayment

In terms of payments, an NBFC/financial institution must have a stellar reputation. In order to broaden their consumer base, companies have begun to offer enticing FD interest rates. However, several of these NBFCs have defaulted on payments. As a result, you must make certain that they have a flawless reputation in the marketplace

Credit Rating

Several organizations offer Corporate FD schemes and to pick the best, you should check for their credit ratings. Companies having CRISIL and ICRA ratings are the most reliable and safest choices.

 

 

 

 

FAQs on Corporate FD

✔️What is a corporate FD?

A Corporate FD is a term deposit held for a fixed period at a fixed interest rate. This FD program has a variable tenor, allowing you to pick the time duration that best suits your needs. Investing in a Corporate FD is one of the best investment alternatives as it gives higher returns. 

✔️What are the documents required for a corporate FD?

Here is a list of the documents required:

  • Aadhaar card

  • Voter Id card

  • PAN card

  • Address proof

  • Passport size photographs

✔️Can I invest in a corporate FD online?

Yes, you can invest in an online corporate FD by visiting the website of an NBFC or financial company. 

✔️Who can invest in a corporate FD?

Following is the list of people/organizations who can invest in a corporate FD.

 

  • An individual or NRI above 18 years

  • Members of HUF (Hindu Undivided Family)

  • Partnership Firms

  • Family Trusts

  • Corporations

  • An Association

  • Educational Institutions

  • Societies

  • Clubs

✔️What are the minimum and maximum tenures of a corporate FD?

The minimum tenure is 1 year and the maximum duration you can choose is 5 years.

✔️Do I need to pay tax on my corporate FD?

Yes, if your annual interest earned exceeds Rs. 5,000, you are obligated to pay relevant taxes. 

✔️What are the rates for TDS on a corporate fixed deposit?

TDS rates vary in accordance with the amount of interest received on the initial capital. If the interest generated exceeds Rs. 40,000, the rate is 10% for Indian citizens and 20% for non-resident Indians.

✔️Which financial institution offers the highest company fixed deposit rates ?

The Bajaj Finance Corporate FD offers a high interest rate on their Corporate FD ranging from 6.20% to 7.50%.