Interest Rates are falling as the Reserve Bank of India (RBI) cut interest rates once again this week. Most analysts are expecting interest rates to fall again by at least another 75 basis points by the end of the year.
While 75 basis points or 0.75 per cent may be a remote possibility, there is every likelihood that interest rates in the economy may continue to fall.
As interest rates fall, it is best to lock money in high yielding company fixed deposits. Most banks offer slightly lower interest rates as compared to the best company fixed deposits, which have an edge in terms of interest rates.
Though bank deposits are highly secure, you could also find highly secure company fixed deposits. Here are a few highly safe company fixed deposits (cumulative schemes), which one can invest in.
| Name | Interest on One Year Deposit | Interest On Two Year Deposit | Interest On Three Year Deposit |
| Mahindra Finance | 9% | 9.25% | 9.25% |
| KTDFC | 10% | 10% | 10% |
| Shriram Transport | 9.25% | 10.23% | 11.34% |
| PNB Housing Finance | 9.25% | 9.25% | 9.25% |
| HDFC | 9.25% (15 months) | 9.30% (22 months) | 9.25% (30 months) |
| Dewan Housing | 9.5% | 9.75% | 9.75% |
KTDFC The Best Bet
KTDFC remains the best bet among the list of company fixed deposits for many reasons. First, the deposits are highly secure because they are backed by the government of Kerala. Second, is that the interest rates are the highest among reputed company deposits.
Most banks in the country currently offer you interest rate of around 8.75 per cent per annum, while the yield can go very high in case of KTDFC.
While there may be some concerns on the service aspect, there is no such problems. Individuals who have invested in the deposit say that the company is very much accessible through phone and emails, and there are no worries in terms of service.
The other option that investors have is Shriram Transport Finance and Mahindra Finance. Both have a very strong pedigree and hence can be considered by investors. However, the problem is that the interest rates do not match that offered by KTDFC.
There are several other company fixed deposits that are available for investment. However company fixed deposits are not secure deposits and one must remember to invest in highly secure deposits.
The above mentioned deposits are safe, but, investors should examine the fundamentals before investing. You also need to study the credit rating and seek professional help.
