Corporate fixed deposits in April 2026: Shriram Finance, Mahindra Finance and 8 others offering high FD rates

Corporate fixed deposits (FDs) represent a favoured investment choice for individuals pursuing consistent yields. These instruments are issued by corporations and generally offer higher interest rates than traditional banks.

As equity market growth hits its lowest point in six years, conservative investors are increasingly gravitating toward fixed deposits.

Low Risk

Participants can commit their capital for specific durations, typically between one and five years. The resulting returns are stable, positioning corporate FDs as a compelling alternative for those seeking to minimise risk.

Non-banking financial companies (NBFCs) and housing finance firms (HFCs) offer higher rates than public and private sector banks, primarily to compensate for inherent credit risk. Notable advantages include higher interest yields—often 1–2% above bank standards—and adaptable tenures ranging from months to years.

Credit ratings

Evaluating potential risks is essential. A straightforward method involves analysing credit ratings, which signal the financial stability of the issuing NBFC or HFC. While lower-rated entities offer higher rewards, they involve greater uncertainty. Investors should prioritise ratings from agencies such as CRISIL, ICRA, and CARE. These assessments indicate the company’s overall financial health, where higher marks signify a reduced risk of default and more reliable interest payments.

What corporate fixed deposits are offering in April 2026

According to Paisabazaar, here are 10 corporate fixed deposits investors can consider in 2026:

1. Shriram Finance

Highest rate:7.60% Tenure: 3 to 5 years

Rates: 1-year: 7% | 3-year: 7.60% | 5-year: 7.60%

Senior citizen:+0.50%

Rating: AA+ (watch positive), AAA (CARE)

Risk: Moderate (strong but not top-tier across all agencies)

2. Mahindra Finance

Highest rate: 7%

Tenure: 2 to 5 years

Rates: 1-year: 6.60% | 3-year: 7% | 5-year: 7%

Senior citizen: +0.20% to +0.35%

Rating: AAA

Risk: Low (top-rated)

3. Manipal Housing Finance Syndicate Ltd

Highest rate: 8.25%

Tenure: 1 to 3 years

Rates: 1-year: 8.25% | 3-year: 8.25% | 5-year: 7.75%

Senior citizen: +0.25%

Rating: A

Risk: High (lower rating but higher returns)

4. PNB Housing Finance Ltd

Highest rate: 6.90%

Tenure: 3 to 5 years

Rates: 1-year: 6.60% | 3-year: 6.90% | 5-year: 6.90%

Senior citizen:+0.25%

Rating: AA+

Risk: Moderate

5. Sundaram Home Finance

Highest rate: 7.15%

Tenure: 4 to 5 years

Rates: 1-year: 6.70% | 3-year: 7% | 5-year: 7.15%

Senior citizen:+0.35% to +0.50%

Rating: AAA

Risk: Low

6. Muthoot Capital Services Ltd

Highest rate: 8.95%

Tenure: 36 months

Rates: 1-year: 7.90% | 3-year: 8.95% | 5-year: 8.50%

Senior citizen: +0.25%

Rating: A+

Risk: High (higher returns = higher risk)

7. ICICI Home Finance

Highest rate: 7.10%

Tenure: 45 months

Rates: 1-year: 6.75% | 3-year: 6.90% | 5-year: 7%

Senior citizen: +0.35%

Rating: AAA

Risk: Low

8. Can Fin Homes Ltd

Highest rate: 7.50%

Tenure: 3 years

Rates: 1-year: 6.50% | 3-year: 7.50% | 5-year: 6.75%

Senior citizen: +0.25% to +0.50%

Rating: AAA

Risk: Low

9. Bajaj Finance Ltd

Highest rate: 6.95%

Tenure: 2 to 5 years

Rates: 1-year: 6.60% | 3-year: 6.95% | 5-year: 6.95%

Senior citizen: +0.35%

Rating: AAA

Risk: Low

10. LIC Housing Finance Ltd

Highest rate: 6.90%

Tenure: 5 years

Rates: 1-year: 6.70% | 3-year: 6.85% | 5-year: 6.90%

Senior citizen: +0.25%

Rating: AAA

Risk: Low