Both banks and NBFCs offer fixed deposits. Banks provide fixed deposit accounts. Companies offer corporate fixed deposits. Many institutions and NBFCs are permitted to receive deposits for a defined period at a prescribed interest rate, just like banks. These are referred to as corporate fixed deposits.
Corporate fixed deposits
The RBI allows certain corporations and NBFCs to accept deposits with a fixed interest rate and term. These are known as Company or Corporate Fixed Deposits. Corporate and housing finance companies (HFC) offer FDs that have a fixed interest rate. As a result, businesses are able to raise money and use it for their operations, and depositors receive guaranteed interest returns on their money.
Interest is paid on a semi-annual basis in a ‘non-cumulative plan.’ The system will be useful for retirees who require monthly interest payments. In the ‘cumulative deposit plan,’ the interest is paid concurrently with the principal at maturity. This program, which may be viewed of as a money multiplier system, is appropriate for persons who do not require periodic interest payments.
Deposits held for 36 to 60 months will now yield a cumulative return of up to 7.20 percent. Senior folks can benefit from 0.25 percent higher FD rates, resulting in 7.45 percent assured returns for 36 to 60 months. Senior citizens can now earn up to 6.85 percent per year for terms ranging from 24 to 35 months and 7.45 percent per year for terms ranging from 36 to 60 months.
The MMFSL Fixed Deposit has an India Ratings – ‘IND AAA / Stable’, indicating the highest level of safety, asd per the website. Samruddhi Fixed Deposits have an additional 0.25 percent interest rate for older residents. The minimum deposit for the cumulative deposit scheme is Rs 5,000 and under the non-cumulative scheme is Rs 25,000 half yearly and Rs.50,000 quarterly.
The company offers interest rate between 6.55 – 6.88 percent.
FD interest rate
For tenure 91 days to 6 months FDs will earn 3.75 percent, up from 3.50 percent, and 1 year to 2 years FDs will earn 5.35 percent, up from 5.10 percent.
Now the interest rate offered on 2 years 1 day to 3 years is 5.50 percent from earlier 5.40 percent. The interest rate is increased to 5.70 percent for deposit tenure 3 years 1 day- 5 years from 5.60 percent.
According to SBI’s website, the bank has raised the interest rate on FDs with terms ranging from 211 days to less than a year by 20 basis points to 4.60 percent. For 1 year to less than 2 year, the interest rate offered has been hiked to 5.30 percent from 5.10 percent. And the interest rate has been raised by 15 basis points on 2 years to less than 3 years tenor FDs to 5.35 percent from 5.20 percent.