A Corporate Fixed Deposit is a type of fixed deposit offered by companies (NBFCs, housing finance companies, manufacturers, etc.) instead of banks.
You deposit a lump sum for a fixed period and earn a pre-decided interest rate, usually higher than bank FDs.

Key Features of Corporate FDs

1. Higher Interest Rates

Corporate FDs typically offer 1% to 3% higher interest than bank FDs.

2. Fixed Tenure

Deposit term usually ranges from 1 to 5 years.

3. Regular Payout Options

You can choose:

· Monthly interest

· Quarterly interest

· Yearly interest

· Cumulative (interest paid at maturity)

4. Credit Ratings

Rated by agencies like:

· CRISIL

· ICRA

· CARE

Higher rating = safer FD
Lower rating = higher return but higher risk