If bank fixed deposits are no longer giving you the returns you want, corporate fixed deposits (FDs) could be an option worth exploring.
Several NBFCs and housing finance companies are currently offering interest rates of up to 9.20%, which is much higher than most bank FDs.
However, higher returns also come with higher risk, so it’s important to understand where you are investing.
What Are Corporate FDs and Why Rates Are Higher
Corporate FDs are deposits offered by NBFCs and HFCs, not banks.
These companies pay higher interest to attract investors, which is why their returns beat regular bank FDs.
Since these deposits are not fully backed like bank FDs, they carry some credit risk.
This risk can be assessed by checking the credit rating given by agencies such as CRISIL, ICRA, and CARE.
A higher rating generally means better financial stability and lower risk.
Top Corporate FDs Offering High Returns
Here are some of the best corporate FDs available as of January 14, 2026, along with their interest rates and credit ratings:
Muthoot Capital Services Ltd
Interest: 8.95% (3 years)
Rating: CRISIL A+/Stable
Senior citizens get 0.25% extra
Manipal Housing Finance Syndicate Ltd
Interest: 8.25% (3 years)
Rating: ACUITE A
Senior citizens get 0.25% extra
Shriram Finance
Interest: 7.60% (3 years)
Rating: ICRA AA+ / IND AA+ (Stable)
Senior citizens get 0.50% extra
Can Fin Homes Ltd
Interest: 7.50% (3 years)
Rating: ICRA AAA/Stable
Mahindra Finance
Interest: 7% (3 years)
Rating: CRISIL AAA / IND AAA (Stable)
Sundaram Home Finance
Interest: 7% (3 years)
Rating: CRISIL AAA / ICRA AAA (Stable)
Bajaj Finance Ltd
Interest: 6.95% (3 years)
Rating: CRISIL AAA / ICRA AAA (Stable)
PNB Housing Finance Ltd
Interest: 6.90% (3 years)
Rating: CRISIL AA+ / CARE AA+ (Stable)
ICICI Home Finance
Interest: 6.90% (3 years)
Rating: CRISIL AAA / ICRA AAA / CARE AAA
LIC Housing Finance Ltd
Interest: 6.85% (3 years)
Rating: CRISIL AAA/Stable
Important Things to Remember Before Investing
Corporate FDs should be chosen carefully.
Do not invest blindly based only on high interest rates.
Always compare interest rates, tenure, and credit ratings before making a decision.
Avoid premature withdrawals, as they usually lead to lower returns.
Most importantly, do not put all your money into one option.
Diversifying your investments helps reduce risk.
Sometimes, choosing a slightly lower interest rate from a more secure company can be a smarter and safer decision.
