Synopsis: Corporate FDs in June 2026 offer up to 9.35% for Indian citizens, along with additional benefits for select investor categories across NBFCs and housing finance companies. This article compares the top 10 NBFC and housing finance companies.
Corporate fixed deposits are still the choice of investors looking for better returns with limited volatility, while bank fixed deposit rates have moderate levels. Currently, the interest rates of NBFCs and housing finance companies are in the range of 6.90% to 9.10% for general investors and up to 9.35% for senior citizens. Apart from earning competitive returns, some issuers offer additional privileges to the senior citizens, female depositors, employees, and renewers.
Highest Corporate FD Rates in June 2026
Source: Official NBFC/HFC websites. Rates are subject to change and may vary based on deposit amount, tenure, and customer category.
Additional Benefits Offered by Issuers
- Shriram Finance offers one of the most extensive sets of benefits among corporate FD issuers. Senior citizens receive an additional 0.50% p.a., women depositors receive an extra 0.05% p.a., and renewed deposits are eligible for an additional 0.15% p.a.. However, these benefits are not applicable to bulk deposits.
- Mahindra Finance provides an additional 0.35% p.a. for senior citizens on deposits with tenures of 36 months and above, and 0.25% p.a. for shorter tenures. It also offers an additional 0.05% p.a. on renewed deposits. Employees and relatives of employees of Mahindra Group companies can receive an extra 0.35% p.a., subject to eligibility conditions.
- Manipal Housing Finance Syndicate Ltd.: Additional 0.25% p.a. for resident senior citizens and staff members across all deposit periods.
- PNB Housing Finance is currently offering a FD scheme with the highest rate of 7.25% p.a. for senior citizens who will get an extra 0.25% p.a. on their eligible deposits up to ₹5 crore, making the maximum interest rate 7.50% p.a.
- Sundaram Home Finance provides additional interest benefits ranging from 0.35% to 0.50% for senior citizens, depending on the deposit tenure selected.
- Muthoot Capital Services Ltd. offers the highest FD rate among the companies compared, with returns of up to 9.10% p.a. for general investors and additional 0.25% p.a. for senior citizens making the maximum interest rate 9.35% p.a on a 36-month tenure.
- ICICI Home Finance Ltd offers its highest FD return under a special 45-month tenure. Senior citizens receive an additional 0.35% p.a., while eligible ICICI Group employees can avail an additional 0.25% p.a. benefit on deposits.
- Can Fin Homes Ltd. offers an additional 0.50% p.a. interest rate for senior citizens on deposits up to ₹1 crore, while eligible staff members, retired employees, and voluntary retirees receive an additional 1% p.a. interest benefit. The company’s highest FD rate of 7.50% is available on a 36-month rising to 7.75% for senior citizens.
- Bajaj Finance Ltd. provides an extra 0.35% p.a. interest benefit to senior citizens. The company’s fixed deposits have got the highest credit ratings in the market, with CRISIL and ICRA rating them as AAA, and its rates are up to 7.40% p.a. for regular investors and 7.75% p.a. for senior citizens for tenures ranging from 31 months to 60 months.
- LIC Housing Finance Ltd. offers fixed deposits under its Sanchay Deposit Scheme and provides an additional 0.25% p.a. interest benefit to senior citizen depositors. The company’s highest FD rate of 6.90% p.a. is available for a 5-year tenure and increases to 7.15% p.a. for senior citizens.
Also read: Corporate FD vs Bank FD: Which One Can Grow Your Money Faster?
Risks to Consider
- Corporate FDs carry credit risk, as repayment depends on the financial health of the NBFC/HFC.
- Higher interest rates often indicate higher risk, so due diligence is important before investing.
- These deposits are not covered by DICGC insurance, unlike bank FDs.
- Premature withdrawal may attract penalties or reduced interest rates.
- Liquidity can be lower, as funds are locked in for a fixed tenure.
- Returns are fixed but not inflation-protected, which may reduce real returns over time.
- Interest income is fully taxable, which can reduce effective post-tax returns.
Who Should Invest in Corporate Fixed Deposits?
Corporate FDs offer higher rates of return than bank FDs to investors at some risk. These are highly suited for senior citizens and retired people looking for income, conservative investors, and those who have an investment period between 2 to 5 years. Investors need to carefully evaluate the rating and credibility of companies before investing as corporate FDs carry slightly higher risk than bank deposits.
Written By Ameet S
