Deposit rates offered by companies

Deposit rates offered by companies

Pallavi Mulay, ET Bureau Corporate FD is not new, but it was neglected for a long time. However, liquidity crunch in the past couple of years and turmoil in equity market made companies to revisit this option. Number of reputed companies like Tata Motors, HDFC, ICICI Home Finance, Godrej Industries, EXIM and HUDCO are now aggressively seeking deposits from public. They are very much similar to a bank fixed deposit. The difference: one is parking his money with a company instead with the bank for a fixed duration and in return the company will offer interest at a predetermined rate on the amount deposited. Like banks, the tenure ranges from 1-7 years. But it is preferable to have corporate FD for short term like 1-3 years. It helps the investor to switch to other company if it requires. Premature withdrawal is also permitted at the company's discretion but it involves some cost. Check out the deposit rates offered by companies State Bank of India Tenure: Less than 2 years Cumulative: 6.25 Non Cumulative: 6.25 Miminmum Amount: Not Mentioned Rating: NA Tenure: Less than 3 years Cumulative: 7 Non Cumulative: 7 Miminmum Amount: Not Mentioned Rating: NA HDFC Regular Tenure: 12-23 months Cumulative: 6.90 Non Cumulative: 6.65 Miminmum Amount: 20,000 Rating: AAA Tenure: 24-35 months Cumulative: 7.40 Non Cumulative: 7.15 Miminmum Amount: 20,000   HDFC Premium Tenure: 15 months Cumulative: 7.00 Non Cumulative: 6.75 Miminmum Amount: 20,000 Tenure: 30 months Cumulative: 7.75 Non Cumulative: 7.50 Miminmum Amount: 20,000 Tata Motors Ltd Tenure: 2 years Cumulative: 8.00 Non Cumulative: 8.00 Miminmum Amount: 20,000 Rating: NA Tenure: 3 years Cumulative: 8.75 Non Cumulative: 8.75 Miminmum Amount: 20,000 Mahindra Finance Ltd Tenure: 12 months Cumulative: 8.00 Non Cumulative: 7.75 Miminmum Amount: 10,000** Rating: FAA Tenure: 18 months Cumulative: 8.25 Non Cumulative: NA Miminmum Amount: 10,000** Tenure: 24 months Cumulative: 8.50 Non Cumulative: 8.25 Miminmum Amount: 10,000** Tenure: 36 months Cumulative: 9.00 Non Cumulative: 8.75 Miminmum Amount: 10,000** LIC Housing Finance Ltd  Tenure: 1 years Cumulative: 6.75 Non Cumulative: 6.75 Miminmum Amount: 10,000 Rating: FAAA Tenure: 18 months Cumulative: 6.80 Non Cumulative: 6.80 Miminmum Amount: 10,000 Tenure: 2 years Cumulative: 7.25 Non Cumulative: 7.25 Miminmum Amount: 10,000 Tenure: 3 years Cumulative: 7.50 Non Cumulative: 7.50 Miminmum Amount: 10,000

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