Corporate Fixed Deposits
Stable Returns with Predictability
What Are Corporate Fixed Deposits?
Corporate Fixed Deposits are term deposits offered by non-banking companies (NBFCs), housing finance companies (HFCs), and corporates. Investors deposit a fixed amount for a specified period and earn interest at a pre-defined rate.
Unlike market-linked investments, corporate FDs offer assured interest payouts, making them a preferred choice for conservative investors.
Corporate FD Interest Rates
- Credit rating of the company
- Investment tenure
- Interest payout option
Corporate Fixed Deposit Tenure Options
- Short-term: 12–24 months
- Medium-term: 24–36 months
- Long-term: 36–60 months
How Are Corporate Fixed Deposits Taxed?
- Interest earned is fully taxable as per your income tax slab
- No tax deduction benefit under Section 80C
- TDS may apply if interest exceeds prescribed limits
Types of Corporate Fixed Deposits
Cumulative Corporate Fixed Deposits
Interest is compounded and paid along with principal at maturity. Suitable for long-term investors focused on wealth accumulation.
Non-Cumulative Corporate Fixed Deposits
Interest is paid monthly, quarterly, half-yearly, or annually. Ideal for investors seeking regular income.
Key Benefits of Corporate Fixed Deposits
- Higher Interest Rates than bank FDs
- Fixed & Guaranteed Returns
- Low Market Volatility Exposure
- Multiple Payout Options
- Suitable for Conservative Investors
- Easy Portfolio Diversification
How Do Corporate Fixed Deposits Work?
- Investor chooses a company and FD scheme
- Interest rate is fixed at the time of investment
- Interest is paid periodically or at maturity
- Principal is returned on maturity
- Interest rate is fixed at the time of investment
Why Choose us for Corporate FD Investments?
Transparent investment process
Personalized financial guidance
Focus on risk-adjusted returns
End-to-end investment support
Risk Factors in Corporate Fixed Deposits
While corporate FDs offer stable returns, they carry credit risk. Unlike bank FDs, corporate deposits are not covered by deposit insurance.
- Company default risk
- Liquidity constraints
- Interest rate changes
Who Should Invest in Corporate Fixed Deposits?
- Salaried professionals seeking stable returns
- Retirees looking for regular income
- Conservative investors avoiding market risk
- Investors diversifying beyond bank FDs
- Individuals with short- to medium-term financial goals