Corporate FD: If you want to earn higher interest rates than a bank FD, a corporate fixed deposit (FD) can be a good option. Non-banking finance companies and housing finance companies offer higher interest rates than banks because they also carry credit risk.
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Corporate FD: If bank FDs aren’t providing the returns you’re looking for, get ready to explore the world of corporate fixed deposits (FDs). Some non-banking finance companies (NBFCs) and housing finance companies (HFCs) are offering interest rates of up to 9.20%, which is much higher than regular bank FDs. But keep in mind that higher returns also come with a small amount of credit risk.
An easy way to understand credit risk is to look at credit ratings. Agencies like CRISIL, ICRA, and CARE report the financial health of companies. The better the rating, the safer the corporate FD. Let’s take a look at the top 10 corporate FDs:
Top 10 Corporate FDs and their Returns (as of January 14, 2026)
1. Muthoot Capital Services Ltd.
Credit Rating: CRISIL A+/Stable
3-year term: 8.95%
Senior Citizen Extra: 0.25% extra interest
2. Manipal Housing Finance Syndicate Ltd.
Credit Rating: ACUITE A
3-year term: 8.25%
Senior Citizen Extra: 0.25%
3. Shriram Finance
Credit Rating: ICRA AA+ (Stable), IND AA+/Stable
3-year term: 7.60%
Senior Citizen Extra: 0.50%
Note: An additional 0.15% on monthly interest on annual renewal
4. Can Fin Homes Ltd.
Credit Rating: ICRA AAA/Stable
3-year term: 7.50%
Senior Citizen Extra: 0.25–0.50%
5. Mahindra Finance
Credit Rating: CRISIL AAA/Stable, IND AAA/Stable
3-year term: 7%
Senior Citizen Extra: 0.10–0.25%
6. Sundaram Home Finance
Credit Rating: CRISIL AAA/Stable, ICRA AAA/Stable
3-year term: 7%
Senior Citizen Extra: 0.35–0.50%
7. Bajaj Finance Ltd.
Credit Rating: CRISIL AAA/Stable, ICRA AAA/Stable
3-year term: 6.95%
Senior Citizen Extra: 0.35%
8. PNB Housing Finance Ltd.
Credit Rating: CRISIL AA+ (Stable), CARE AA+ (Stable)
3-year term: 6.90%
Senior Citizen Extra: 0.25% (on deposits up to Rs 1 crore)
9. ICICI Home Finance
Credit Rating: CRISIL AAA/Stable, ICRA AAA/Stable, CARE AAA/Stable
3-year term: 6.90%
Senior Citizen Extra: 0.35%
10. LIC Housing Finance Ltd.
Credit Rating: CRISIL AAA/Stable
3-year term: 6.85%
Senior Citizen Extra: 0.25%
Points to keep in mind:
- Don’t invest blindly.
- Compare rates, tenure, and credit ratings.
- Avoid premature closure; this can reduce interest rates.
- FDs are just one option; diversify your investments.
- Invest based on the correct rating and interest rate. Sometimes, a slightly lower-rate but more secure FD proves to be better.
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