Interest rates on company fixed deposits go up
Companies raise interest rates payable on the fixed deposits, as Reserve Bank of India opts to tighten the liquidity in the financial system.
NEW DELHI: Companies raise interest rates payable on the fixed deposits, as Reserve Bank of India opts to tighten the liquidity in the financial system. In August, Gruh Finance and PNB Housing Finance have hiked the interest rates on their fixed deposits. Market observers expect other companies to follow this trend in the near future.
Gruh Finance has launched special fixed deposit scheme where it offers 9.75% and 10% rate of interest on 30 and 33 months fixed deposits as against 9% rate of interest on 36 months and 48 month fixed deposits. PNB Housing Finance has increased the rate of interest to 9.5% as compared to 9.3% earlier on 12 months fixed deposits. "Gruh Finance fixed deposit surely looks attractive given AAA rating and strong parentage. Investors should lock in their money at 10% rate of interest," says Anup Bhaiya, managing director, Money Honey Financial Services. Though there are many other companies are expected to tap fixed deposit markets to raise funds, few of these would be worth investing into. Stay away from unknown companies offering higher returns as they run very high credit risk, adds Anup Bhaiya. Investors also have options such as M&M Financial Services and Shiram Unnati Fixed deposit that offer 10.25% and 10.75% respectively, for 36 months fixed deposit.