SBI Securities – Corporate Fixed Deposits in India | 5 Companies

SBI Securities

SBI Securities, a renowned name in the financial sector, is synonymous with trust and reliability in the realm of investment solutions. Among its varied offerings, Corporate Fixed Deposits (FDs) stand out for providing high returns, security, and flexibility. This essay delves into the benefits and features of Corporate Fixed Deposits offered by SBI Securities, along with an overview of five prominent companies providing these investment options: Shriram Finance Limited, Mahindra Finance, LIC Housing Finance, PNB Housing Finance, and ICICI Home Finance.

Understanding Corporate Fixed Deposits

Corporate Fixed Deposits are investment instruments offered by non-banking financial companies (NBFCs) and other corporate entities. Unlike regular bank FDs, Corporate FDs typically offer higher interest rates, making them an attractive option for investors seeking better returns. However, they also come with their own set of risks and require careful consideration of the issuer’s creditworthiness.

Benefits of Investing in Corporate Fixed Deposits via SBI Securities

1. High Safety
   • Corporate FDs offered through SBI Securities are assured by AA+/AAA ratings, indicating high safety and low credit risk. These ratings are provided by reputed credit rating agencies based on the financial health and performance of the issuing companies.
2. Reputable Issuers
   • The Corporate FDs available via SBI Securities are issued by highly reputed corporates with a long and proven track record. This adds an extra layer of security and confidence for investors.
3. Easy Liquidity
   • One of the significant benefits of Corporate FDs is the pre-mature withdrawal facility, which ensures liquidity in times of need. Investors can access their funds before the maturity date, although this may involve some penalty charges.
4. Higher Interest Rates
   • Corporate FDs often offer higher interest rates compared to traditional bank FDs. Investors can earn returns as high as 9.40% per annum, providing a lucrative investment opportunity.
5. Regular Assured Income
   • Investors can choose from multiple income options ranging from monthly to yearly payouts. This flexibility allows investors to plan their cash flows according to their financial needs.
6. Additional Benefits for Senior Citizens
   • Senior citizens enjoy superior interest rates, with an additional 0.50% per annum on their investments. This makes Corporate FDs a more attractive option for older investors looking for higher returns.
7. Flexible Tenure Options
   • Corporate FDs come with flexible tenure options ranging from 12 to 60 months. Longer tenures generally offer higher returns, giving investors the freedom to choose a period that aligns with their financial goals.
8. Security
   • These deposits are accepted by RBI-registered and regulated NBFCs, ensuring that the investment is secure and governed by strict regulatory standards.

Also Read… Bank FD or Corporate FD is Better ? Which Would You Choose?

Overview of Companies Offering Corporate FDs

1. Shriram Finance Limited FD

• Tenure: 1-5 Years
• Amount: Rs. 25,000 – 5 Cr
• Interest: 7.59% – 8.80% (Senior Citizen: +0.50% p.a. | Women Depositors: +0.10% p.a.)

Shriram Finance Limited is a well-established name in the financial services sector, known for its strong market presence and high credit ratings. The company’s FDs offer competitive interest rates, making it an attractive option for investors looking for reliable and high-yield investments.

2. Mahindra Finance FD

• Tenure: 1-5 Years
• Amount: Rs. 5,000 – 5 Cr
• Interest: 7.20% – 8.05% (Senior Citizen: +0.25% p.a.)

Mahindra Finance, a part of the Mahindra Group, is one of the leading NBFCs in India. Known for its customer-centric approach and robust financial health, Mahindra Finance offers FDs with attractive interest rates and flexible tenures.

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3. LIC Housing Finance FD

• Tenure: 1-5 Years
• Amount: Rs. 20,000 – 20 Cr
• Interest: 6.80% – 7.50% (Senior Citizen: +0.25% p.a.)

LIC Housing Finance is a subsidiary of Life Insurance Corporation of India, providing housing finance to individuals and corporate bodies. The company’s FDs are a popular choice among investors due to its reputable backing and competitive interest rates.

4. PNB Housing Finance FD

• Tenure: 1-10 Years
• Amount: Rs. 20,000 – 5 Cr
• Interest: 6.79% – 7.70% (Senior Citizen: +0.25% p.a.)

PNB Housing Finance, a subsidiary of Punjab National Bank, is one of the leading housing finance companies in India. The company’s FDs are known for their stability and attractive returns, making them a favored option for many investors.

5. ICICI Home Finance FD

• Tenure: 1-10 Years
• Amount: Rs. 5,000 – 2 Cr
• Interest: 6.80% – 7.60% (Senior Citizen: +0.25% p.a.)

ICICI Home Finance is a part of ICICI Group, offering a range of financial products and services. The company’s FDs provide competitive interest rates and the security of a well-established financial institution.

Conclusion

SBI Securities offers a robust platform for investing in Corporate Fixed Deposits, providing high returns, safety, and flexibility. By partnering with reputed companies like Shriram Finance Limited, Mahindra Finance, LIC Housing Finance, PNB Housing Finance, and ICICI Home Finance, SBI Securities ensures that investors have access to reliable and profitable investment options. However, it is crucial for investors to understand the associated risks and make informed decisions to maximize their returns while safeguarding their investments.

Disclaimer

Investing in Corporate Fixed Deposits comes with its own set of risks, and it is essential to carefully assess the creditworthiness of the issuer before investing. While Corporate FDs offer higher interest rates, they are not insured by the government, unlike bank FDs. Therefore, investors should conduct thorough research and possibly consult financial advisors to ensure that the investment aligns with their risk tolerance and financial goals.