What is a Corporate Fixed Deposit?
Corporate Fixed Deposits are fixed deposits offered by corporate companies. They function like
regular bank FDs but offer higher interest rates while carrying slightly higher risks. The
tenure period of a corporate fixed deposit ranges between 1-10 years.
Company Fixed Deposit
A Company Fixed Deposit is an amount deposited by investors for a fixed period with a company
that offers a fixed rate of return. These deposits are accepted by manufacturing companies,
financial institutions, and non-banking finance companies and are governed by the Companies
Act 58A.
Benefits of Company Fixed Deposits
- 📌 Higher Interest Rate – Offers 2-4% higher interest
than bank FDs.
- 📌 Regular Income – Investors can receive interest
monthly, quarterly, half-yearly, or yearly.
- 📌 Lock-in Period – The minimum lock-in period is six
months.
- 📌 Tax Benefits – TDS is not applicable if annual
interest earned is ₹5,000 or less in a single company.
Important Things to Consider
- ✅ Read the Application Form Carefully – Understand all
terms before investing.
- ✅ Check Company Ratings – Verify credit ratings before
investing.
- ✅ Background Check – Research the company’s financial
stability.
- ✅ Interest Rate Changes – Companies may revise interest
rates without prior notice.
