FD Update: Corporate FDs Are Offering Higher Returns Than Banks; Senior Citizens Reap Bumper Benefits..

For those seeking returns superior to traditional bank Fixed Deposits (FDs), Corporate FDs are increasingly emerging as an excellent alternative today. They offer the dual advantage of a secure investment coupled with higher interest rates compared to banks. Currently, several major companies are offering interest rates exceeding 8% on their FDs, thereby presenting investors with opportunities for higher earnings. If you aim to generate substantial profits in 2026, investing in such top-tier companies could prove to be a rewarding strategy.

These companies have also introduced special offers specifically tailored for senior citizens. Compared to general investors, senior citizens are entitled to higher interest rates. For instance, Shriram Finance is currently offering an additional interest rate of 0.50%. Similarly, Manipal, Muthoot, and KTDFC provide an enhanced return of 0.25%. Mahindra and Sundaram Finance are also offering additional interest ranging from 0.20% to 0.50%. Furthermore, ICICI Home Finance extends an extra benefit of 0.35% to senior citizens.

These Companies Are Offering Higher Interest Rates
Company Name | 1-Year Rate | 3-Year Rate | 5-Year Rate | Tenure Range
Manipal Housing Finance | 8.25% | 8.25% | 7.75% | 1-3 Years
Muthoot Capital Services | 7.90% | 8.95% | 8.50% | 36 Months
Shriram Finance | 7.00% | 7.60% | 7.60% | 3-5 Years
Kerala Transport Development (KTDFC) | 7.00% | 7.00% | 6.75% | 12-60 Months
PNB Housing Finance | 6.60% | 6.90% | 6.90% | 3-5 Years
Mahindra Finance | 6.60% | 7.00% | 7.00% | 2-5 Years
ICICI Home Finance | 6.75% | 6.90% | 7.00% | 45 Months
Sundaram Home Finance | 6.70% | 7.00% | 7.15% | 4-5 Years
LIC Housing Finance | 6.70% | 6.85% | 6.90% | 5 Years
Source: Paisabazaar

Corporate FDs are essentially Fixed Deposits issued by companies. In this arrangement, instead of banks, NBFCs, or other companies raise funds from investors. A key feature of Corporate FDs is that they offer higher interest rates, and you can also select an investment tenure that suits your specific needs. However, it is imperative to verify the credibility of the company before investing.

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