Corporate fixed deposits offered by non-banking financial companies continue to attract investors seeking higher returns than traditional fixed deposits. According to reports from Mint, as of June 2026, several prominent NBFCs are offering investors interest rates of up to 8.95% along with additional perks for senior citizens. These corporate FDs are especially popular in the current geopolitical environment, where amid the US-Israel war on Iran, global markets and commodity prices are going through immense volatility.
As reported by Mint, Muthoot Capital Services Ltd. leads the market with the highest corporate FD rate of 8.95% for a 36-month tenure. Other notable offerings include Manipal Housing Finance Syndicate Ltd. at 8.25% for various tenures, Mahindra Finance at 7.45% for 48-60 months, and Shriram Finance at 7.25% for 3-5 years. Bajaj Finance Ltd. offers 7.40% for 31-60 months, while PNB Housing Finance Ltd. provides 7.15% for 40 months. LIC Housing Finance Ltd. rounds out the offerings at 6.90% for 5 years.
According to the data from Paisabazaar.com as reported by Mint, most leading NBFCs maintain strong credit ratings with AAA/Stable ratings from multiple agencies. Muthoot Capital Services Ltd. holds a CRISIL AA-/Stable rating, while PNB Housing Finance Ltd. has CRISIL AA+ (Stable) and CARE AAA (Stable) ratings. The credit ratings indicate better repayment capacity and financial strength of these institutions, making them attractive options for investors seeking higher returns while maintaining safety considerations.
As reported by Mint, investors should carefully consider five key factors before investing in corporate FDs. These include checking credit ratings carefully as higher interest rates may come with higher risk, avoiding investment solely for returns and considering processing fees and risk tolerance. Understanding tenure and liquidity needs, comparing senior citizen and special benefits, and diversifying across multiple issuers to reduce concentration risk are also crucial factors for prudent investment decisions.
