AMFI-registered Mutual Fund Distributor · ARN 348738

Corporate Fixed Deposits

A corporate fixed deposit (FD) is a deposit placed with a company, usually a non-banking finance company or housing finance company, for a fixed period at an interest rate set by the issuer. We facilitate corporate FDs through agreements with established partner institutions.

How they differ from bank FDs

  • Not covered by deposit insurance. Bank deposits are covered up to the prescribed limit by deposit insurance; corporate FDs are not.
  • Credit risk. Repayment depends on the issuer's financial strength. Deposits are generally unsecured.
  • Credit rating. Independent rating agencies rate issuers. Ratings can change over the deposit's life.

Features to compare

  • Tenure — the fixed period of the deposit.
  • Cumulative or non-cumulative — interest paid at maturity, or paid out monthly, quarterly or annually.
  • Premature withdrawal — usually allowed only after an initial period and often with a lower interest rate.
  • Tax — interest is taxable income, and tax may be deducted at source above a threshold set by law.
  • Nomination — you can nominate who receives the deposit.

Questions to ask before investing

  • What is the issuer's credit rating, and who assigned it?
  • What are the terms for withdrawing early?
  • How much of your savings would sit with a single issuer?

Corporate fixed deposits are unsecured obligations of the issuer and are not covered by deposit insurance. Read the application form and rating documents carefully. See Disclaimers.

Questions people ask

Is a corporate FD safer than a mutual fund?

They carry different risks. A corporate FD carries the issuer's credit risk and limited liquidity; a mutual fund carries market risk. Neither has guaranteed outcomes.

Do you quote interest rates?

Rates vary by issuer, tenure and date, and are shown in the issuer's application form. We help you compare the offers available at the time.

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