Finance Blog

CRISIL Rating for Fixed Deposit – Everything You Need to Know

Fixed deposits (FDs) are one of the most popular investment instruments for decades, as they offer assured returns without risking your hard-earned money. Apart from banks, many financial institutions are now offering corporate FDs.

For ages, people have been investing in bank FDs as these investments are secured. However, how do you trust the safety of your investments in corporate FDs? In such cases, the unbiased ratings provided by Credit Rating Information Services of India Limited (CRISIL) can help you judge the monetary stability of the financial institution. Let us know more about CRISIL before we ascertain how their ratings impact the decision of the depositors.

CRISIL was incorporated in 1987. It is India’s first full-service credit rating agency. It provides the necessary information to the investors to gauge the creditworthiness of a specific financial institution. It rates numerous financial products, like FDs, loans, bonds, and non-convertible debentures.

The role of CRISIL is pivotal, as it assists the borrowers and lenders to bridge their gap. The ratings given to a financial institution by CRISIL acts as a benchmark for depositors, helping them determine the credit adequacy of an entity. With these ratings, borrowers can make sound decisions and be careful from investing in risky financial institutions.  These ratings benefit financial institutions as well; they can market their debt instruments based on the rating given by CRISIL. So, if they have a high rating, they can use it to their advantage to attract investors.

How do CRISIL ratings affect fixed deposit investors?

The purpose of investing in an FD is to earn respectable returns. So, we want to invest in a financial institution that offers the best fixed deposit interest rates. However, there is always a risk of losing your money if the financial institution defaults on your interest and principal payment because of insufficient funds. Therefore, it is advisable to check the CRISIL ratings if you are planning to invest your hard-earned money in financial institutions that are not backed by the Government of India. The CRISIL rating for fixed deposit is explained here:

Symbol Safety level
FD Default
FC High Risk
FB Inadequate Safety
FA Adequate Safety
FAA High Safety
FAAA Highest Safety

Now that you know the importance of CRISIL rating for fixed deposit, it is time to look for a financial institution that has a high CRISIL rating. Mahindra Finance has a CRISIL rating of FAAA, indicating the highest safety. So, rest assured, as your money will be safe with this financial institution. To know more about the FD rates, visit the Mahindra Finance website now!

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