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. This FD program has a variable tenure, allowing you to pick the time duration that best suits your needs. Investing in corporate FD is one of the best investment alternatives as it gives higher returns.

 

However, in order to make your investment more beneficial, you must choose the right organization. You can do so by comparing company FD rates, tenure, and other benefits offered by the institution. It will assist you in selecting the best corporate FD scheme.

Who can Invest in Corporate Fixed Deposits

All individuals, NRIs, and senior citizens above 18 years can invest in a corporate FD in India. Additionally, partnership firms, sole proprietorships, HUFs (Hindu Undivided Families), family trusts, etc. are also eligible to invest. However, every financial institution has its own set of conditions and eligibility criteria. As a result, if you want to invest in corporate deposits in India, you must enquire about the same by visiting the branch of financing companies/NBFCs or calling their customer officials.

Top Corporate FDs

In order to choose the right organization, you must be well-informed about their 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 6.03%-7.75%

0.25%

CRISIL-FAAA

ICRA-MAAA

PNB Housing Finance Ltd

Between 5.75% -7.00%

0.25%

CRISIL-FAA+

ICICI Home Finance

Between 5.25%-6.80%

0.25%

CRISIL-FAAA

ICRA-MAAA

LIC Housing Ltd

Between 5.60%-6.60%

0.25%

CRISIL-FAAA

Muthoot Capital Services Ltd

Between 6.25%-7.25%

0.25%

CRISIL-FA+

Sundaram Home Finance

Between 5.50%-6.05%

0.50%

CRISIL-FAAA

ICRA-MAAA

HDFC Ltd

Between 5.65%-6.70%

0.25%

CRISIL-FAAA

ICRA-MAAA

Disclaimer: Interest rates are subject to change as per the financial institution’s policy

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 about the same.

Higher Interest Rates

Bajaj Finance offers attractive interest rates on corporate FDs to guarantee that they are the best fit for you. The duration you choose affects the rate of interest on their fixed deposits. With a longer tenure, you may expect a higher interest rate.

Minimum Investment Amount

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

Flexible Tenure

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

Hassle-Free Experience

Since the company follows the digital process, you will have a seamless experience throughout the procedure.

Dedicated Customer Officials

Skilled and experienced customer care representatives are available to guide you in any difficulty or clear your doubts concerning your corporate FD.

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 benefits of investing in a corporate FD.

1. Regular Interest Payment

By investing in corporate fixed deposits, you will receive interest rate payments on a monthly, quarterly, semi-annual, and annual basis. This advantage makes it an excellent choice for someone who needs a consistent income from their term deposit.

2. Guaranteed Profits

Corporate fixed deposits from NBFCs like Bajaj Finance are guaranteed by CRISIL and ICRA, two well-known credit rating agencies. These two agencies are the two most prominent safety ratings available in the business. Bajaj Finance corporate FD is rated FAAA by CRISIL and MAAA by ICRA, indicating that it is safe and reliable. As a result, you can be assured that your interest and principal payments will be made on time.

3. Loan on Corporate Fixed Deposit

In any financial emergency, people holding FDs withdraw their funds before they reach maturity. By doing so, you wind up incurring a penalty for early withdrawal as well as stifling the growth of your money. This is when a loan against FD comes in handy. You can use your FD as collateral and take out a loan to cover an unexpected financial necessity.

Features of Corporate FDs

Following are a few features that make a corporate FD an ideal choice for investment.

 

  • They are low-risk investments that are unaffected by market volatility.

  • NBFCs provide simple processes to liquidate your fixed deposits.

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

  • Many NBFCs allow for unrestricted early withdrawals.

  • Senior citizens are provided with additional interest rate payments.

Eligibility Criteria for Company Fixed Deposits

Following are the eligibility criteria for investing 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

Tax on Corporate FDs

Interests earned on corporate FDs issued by HFCs/NBFCs are taxable as per the rules. 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.

 

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

  • If your income exceeds Rs. 40,000, 10% TDS deduction is applicable on the earnest 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 changes depending on the customer's category. For example, the imposed TDS rate for resident Indians is 10% of the interest earned, whereas the rate for non-resident Indians 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 making a selection, there are some important factors that you must consider.

1. Background of the Organization

It is critical to research the history of the firm with whom you choose to create an 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.

2. 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.

3. 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 tenure, allowing you to pick the time duration that best suits your needs. Investing in 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 the list of documents.

    • 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.

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