Corporate FDs: If you're not getting the desired returns from bank FDs anymore, get ready to explore the world of corporate fixed deposits (FDs). Some Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) are offering interest rates of up to 9.20%, which is significantly higher than typical bank FDs. However, remember that higher returns come with a certain degree of credit risk.

An easy way to understand credit risk is to look at the credit rating. Agencies like CRISIL, ICRA, and CARE provide information about the financial health of companies. The better the rating, the safer the corporate FD. Let's 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 tenure: 8.95%
Senior Citizen Extra: 0.25% extra interest

2. Manipal Housing Finance Syndicate Ltd.
Credit Rating: ACUITE A
3-year tenure: 8.25%
Senior Citizen Extra: 0.25%

3. Shriram Finance
Credit Rating: ICRA AA+ (Stable), IND AA+/Stable
3-year tenure: 7.60%
Senior Citizen Extra: 0.50%
Note: Extra 0.15% annually on monthly rest and renewal

4. Can Fin Homes Ltd. Credit Rating: ICRA AAA/Stable
3-Year Tenure: 7.50%
Senior Citizen Extra: 0.25–0.50%

5. Mahindra Finance
Credit Rating: CRISIL AAA/Stable, IND AAA/Stable
3-Year Tenure: 7%
Senior Citizen Extra: 0.10–0.25%

6. Sundaram Home Finance
Credit Rating: CRISIL AAA/Stable, ICRA AAA/Stable
3-Year Tenure: 7%
Senior Citizen Extra: 0.35–0.50%

7. Bajaj Finance Ltd.
Credit Rating: CRISIL AAA/Stable, ICRA AAA/Stable
3-Year Tenure: 6.95%
Senior Citizen Extra: 0.35%

8. PNB Housing Finance Ltd.
Credit Rating: CRISIL AA+ (Stable), CARE AA+ (Stable)
3-Year Tenure: 6.90%
Senior Citizen Extra: 0.25% (on deposits up to ₹1 crore)

9. ICICI Home Finance
Credit Rating: CRISIL AAA/Stable, ICRA AAA/Stable, CARE AAA/Stable
3-Year Tenure: 6.90%
Senior Citizen Extra: 0.35%

10. LIC Housing Finance Ltd.
Credit Rating: CRISIL AAA/Stable
3-Year Tenure: 6.85%
Senior Citizen Extra: 0.25%

Points to remember:
Do not invest blindly.
Compare rates, tenure, and credit ratings.
Avoid premature closure, as it may result in lower interest.
FDs are just one option; diversify your investments.
Invest by considering the right balance of rating and interest; sometimes a slightly lower rate but a more secure FD proves to be better.

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