Corporate fixed deposits (FDs) represent a favoured investment choice for individuals pursuing consistent yields. These instruments are issued by corporations and generally offer higher interest rates than traditional banks.
As equity market growth hits its lowest point in six years, conservative investors are increasingly gravitating toward fixed deposits.
Low Risk
Participants can commit their capital for specific durations, typically between one and five years. The resulting returns are stable, positioning corporate FDs as a compelling alternative for those seeking to minimise risk.
Non-banking financial companies (NBFCs) and housing finance firms (HFCs) offer higher rates than public and private sector banks, primarily to compensate for inherent credit risk. Notable advantages include higher interest yields—often 1–2% above bank standards—and adaptable tenures ranging from months to years.
Credit ratings
Evaluating potential risks is essential. A straightforward method involves analysing credit ratings, which signal the financial stability of the issuing NBFC or HFC. While lower-rated entities offer higher rewards, they involve greater uncertainty. Investors should prioritise ratings from agencies such as CRISIL, ICRA, and CARE. These assessments indicate the company’s overall financial health, where higher marks signify a reduced risk of default and more reliable interest payments.
What corporate fixed deposits are offering in April 2026
According to Paisabazaar, here are 10 corporate fixed deposits investors can consider in 2026:
1. Shriram Finance
Highest rate:7.60% Tenure: 3 to 5 years
Rates: 1-year: 7% | 3-year: 7.60% | 5-year: 7.60%
Senior citizen:+0.50%
Rating: AA+ (watch positive), AAA (CARE)
Risk: Moderate (strong but not top-tier across all agencies)
2. Mahindra Finance
Highest rate: 7%
Tenure: 2 to 5 years
Rates: 1-year: 6.60% | 3-year: 7% | 5-year: 7%
Senior citizen: +0.20% to +0.35%
Rating: AAA
Risk: Low (top-rated)
3. Manipal Housing Finance Syndicate Ltd
Highest rate: 8.25%
Tenure: 1 to 3 years
Rates: 1-year: 8.25% | 3-year: 8.25% | 5-year: 7.75%
Senior citizen: +0.25%
Rating: A
Risk: High (lower rating but higher returns)
4. PNB Housing Finance Ltd
Highest rate: 6.90%
Tenure: 3 to 5 years
Rates: 1-year: 6.60% | 3-year: 6.90% | 5-year: 6.90%
Senior citizen:+0.25%
Rating: AA+
Risk: Moderate
5. Sundaram Home Finance
Highest rate: 7.15%
Tenure: 4 to 5 years
Rates: 1-year: 6.70% | 3-year: 7% | 5-year: 7.15%
Senior citizen:+0.35% to +0.50%
Rating: AAA
Risk: Low
6. Muthoot Capital Services Ltd
Highest rate: 8.95%
Tenure: 36 months
Rates: 1-year: 7.90% | 3-year: 8.95% | 5-year: 8.50%
Senior citizen: +0.25%
Rating: A+
Risk: High (higher returns = higher risk)
7. ICICI Home Finance
Highest rate: 7.10%
Tenure: 45 months
Rates: 1-year: 6.75% | 3-year: 6.90% | 5-year: 7%
Senior citizen: +0.35%
Rating: AAA
Risk: Low
8. Can Fin Homes Ltd
Highest rate: 7.50%
Tenure: 3 years
Rates: 1-year: 6.50% | 3-year: 7.50% | 5-year: 6.75%
Senior citizen: +0.25% to +0.50%
Rating: AAA
Risk: Low
9. Bajaj Finance Ltd
Highest rate: 6.95%
Tenure: 2 to 5 years
Rates: 1-year: 6.60% | 3-year: 6.95% | 5-year: 6.95%
Senior citizen: +0.35%
Rating: AAA
Risk: Low
10. LIC Housing Finance Ltd
Highest rate: 6.90%
Tenure: 5 years
Rates: 1-year: 6.70% | 3-year: 6.85% | 5-year: 6.90%
Senior citizen: +0.25%
Rating: AAA
Risk: Low