Deposits with NBFCs and housing finance companies, typically paying more than a bank fixed deposit. The rate is known at the outset and does not move with the market.
What this actually does for you
The return is known before you invest
Unlike any market-linked product, you know the rate, the tenure and the maturity amount on day one.
Usually higher than bank deposit rates
NBFC and housing finance deposits generally pay more than banks for a comparable tenure, which is the compensation for taking on more credit risk.
Choice of payout frequency
Monthly, quarterly, annual or cumulative. Useful when the deposit is intended to produce regular income.
Higher rates for senior citizens
Most issuers add a margin for depositors above a defined age, which makes these deposits particularly relevant after retirement.
Honestly, who should and shouldn’t
✓ This is for you if
- You want a known return with no market exposure
- You are at or near retirement and need predictable income
- You are parking money for a goal one to five years away
- You want to balance an equity-heavy portfolio with something stable
- You accept a slightly higher credit risk in exchange for a higher rate
✕ This isn’t for you if
- You need to be able to withdraw at any moment — premature withdrawal carries penalties and is sometimes restricted
- You are in a high tax bracket and have better post-tax options; interest is taxed at your slab rate
- You are chasing the highest advertised rate without checking the issuer’s credit rating
- Your horizon is ten years or more and you can tolerate market movement — equity has historically done more over such periods
- You are putting your entire savings with a single issuer
When this belongs in your plan
Long horizon at this stage usually favours growth assets over fixed returns.
Useful only for short-dated goals; the bulk should be working harder.
Becomes genuinely useful. Moving completed goals out of equity into known returns.
Core holding. Predictable income, senior citizen rates, and no market anxiety.
5 steps
- 01Check the credit rating
The rating agencies’ view of the issuer matters more than the headline rate. We only place deposits with rated issuers.
- 02Choose tenure and payout
Cumulative if you want growth, periodic payout if you want income.
- 03Spread across issuers
Rather than the entire amount with whoever pays most, we spread it.
- 04Complete the application and KYC
Straightforward, usually a few days.
- 05Set a maturity reminder
Deposits that auto-renew at a lower rate are a common and avoidable loss.
Read this before you commit
Deposit insurance that applies to bank deposits does not apply here. Your protection is the issuer’s creditworthiness, which is why the rating matters.
A company deposit depends entirely on the company remaining able to pay. Higher advertised rates usually signal higher risk, not generosity.
For someone in a high bracket, the post-tax return may be lower than the headline rate suggests. TDS may also apply.
Many issuers impose a lock-in period during which withdrawal is not permitted at all.
Any rate shown anywhere, including on this site, must be confirmed at the time of investment.
Spreading across several rated issuers costs nothing and materially reduces the risk.
Common questions
How is this different from a bank FD?
The issuer is a finance company rather than a bank, the rate is usually higher, and the deposit insurance that applies to bank deposits does not apply here. You are taking on the issuer’s credit risk.
Which companies do you place deposits with?
We work with rated NBFC and housing finance issuers. The specific list and current rates are confirmed at the time of investment, since both change.
Is the interest taxable?
Yes, at your income tax slab rate. TDS may be deducted by the issuer above defined thresholds.
Can I withdraw early?
Usually after a minimum lock-in and with a penalty on the rate. Terms vary by issuer, so check before committing.
What happens at maturity?
You can withdraw or renew. Watch this date — deposits that auto-renew at whatever rate applies then are a common way to lose money quietly.
Ask about Company Fixed Deposits
Our team calls back within one working day. Nothing is sold on the first call.