Company FD rates in July 2026: Muthoot Capital offers up to 9.10%; check returns, features

Company Fixed Deposits (FDs) remain a popular investment choice for savers looking for fixed returns that are often higher than traditional bank deposits. Offered by housing finance companies, non-banking financial companies (NBFCs) and other corporates, company FDs are regulated under Section 58A of the Companies Act, 2013.

As of July 1, 2026, interest rates offered by leading company FDs range from around 6.6% to as high as 9.1% per annum, depending on the issuer, tenure and investor category. Many companies also offer additional interest to senior citizens and other benefits such as loans against deposits and nomination facilities.

Among the highest-paying options, Muthoot Capital Services offers interest rates ranging from 7.90% to 9.10% annually, making it the top-paying company FD currently available. Shriram Finance follows with rates between 7% and 7.60%, while Housing and Urban Development Corporation (HUDCO) offers returns of up to 7.25%.

Mahindra Finance offers interest rates between 6.75% and 7.45%, depending on the deposit tenure. PNB Housing Finance provides returns of up to 7.25%, while Sundaram Home Finance offers up to 7.15%. LIC Housing Finance offers up to 6.90%, and Bajaj Finance pays between 6.60% and 6.95% on its fixed deposits.

Company          Key	Maximum FD Rate (p.a.)	Credit Rating	Features
Muthoot Capital Services	Up to 9.10%	CRISIL FAAA	Minimum investment ₹1,000, loan up to 75% of FD value, nomination facility
Shriram Finance	Up to 7.60%	ICRA MAA+	Up to 0.50% extra for senior citizens, 3-5 year tenure
Mahindra Finance	Up to 7.45%	CRISIL FAAA	Minimum investment ₹25,000, additional interest for senior citizens
HUDCO	Up to 7.25%	ICRA AAA	Section 80C tax benefits, loan and nomination facilities
PNB Housing Finance	Up to 7.25%	CRISIL FAAA	Tenure up to 10 years, senior citizen benefit available
Sundaram Home Finance	Up to 7.15%	CRISIL FAAA	Minimum investment ₹10,000, extra interest for senior citizens
LIC Housing Finance	Up to 6.90%	CRISIL FAAA	Minimum investment ₹20,000, tenure up to 5 years
Bajaj Finance	Up to 6.95%	CRISIL FAAA / ICRA MAA	Minimum investment ₹5,000, tenure up to 5 years, 0.35% extra for senior citizens

Why investors choose company FDs

Company FDs typically offer higher returns than bank FDs because they carry relatively higher credit risk. Investors should therefore carefully assess the company's financial health and credit ratings before investing. Most leading issuers are rated by agencies such as CRISIL and ICRA, helping investors gauge their creditworthiness.

Apart from higher returns, company FDs offer flexible tenures, regular interest payout options and additional interest for senior citizens, making them suitable for retirees and conservative investors seeking predictable income.

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Key features of popular company FDs

Bajaj Finance allows investments from as little as ₹5,000 and offers deposit tenures of up to five years. Senior citizens receive an additional 0.35% interest.

Mahindra Finance requires a minimum investment of ₹25,000 and offers an additional 0.20%-0.35% interest for senior citizens.

Shriram Finance provides an extra 0.50% interest for senior citizens and offers deposit tenures between three and five years.

PNB Housing Finance offers deposit tenures of up to 10 years, with minimum investments starting at ₹10,000 for regular deposits and ₹25,000 for monthly income schemes.

LIC Housing Finance accepts deposits from ₹20,000 onwards, while HUDCO FDs come with loan and nomination facilities and may also qualify for tax benefits under Section 80C.

Sundaram Finance allows investments from ₹10,000 and offers up to 0.50% additional interest for senior citizens. Muthoot Capital has one of the lowest entry thresholds at just ₹1,000 and also provides loans of up to 75% of the accumulated FD value.

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Points to consider before investing

Unlike bank fixed deposits, company FDs are not covered by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Investors should therefore examine the issuer's credit rating, repayment history, financial strength and liquidity position before investing. Comparing interest rates, tenure options, premature withdrawal rules and payout frequency can also help investors choose a deposit that matches their financial goals. Diversifying investments across multiple issuers, rather than investing the entire amount with a single company, can further reduce investment risk while helping lock in attractive fixed returns.

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