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What is a Company Fixed Deposit?

Corporate Fixed Deposits, also known as company fixed deposits are an investment option provided by financial institutions, non-banking financial companies (NBFCs) and other corporate entities. It is essentially a term deposit that you can hold for a fixed period. Several financial institutions are allowed to collect FDs for a specified tenor at a given interest rate.

On this deposit, you earn interest at the corporate FD rates fixed by the issuer. The tenor of investment in a corporate FD can range from 1 year to 5 years. You can choose a period that aligns with your financial goals.

Investing in corporate fixed deposits is an excellent investment strategy as it offers the advantage of guaranteed returns at rates that are slightly higher than bank FD rates. To make a smart investment choice, it is essential to choose the right organisation.

In order to do this, you can compare the company FD rates, the investment tenors and other features and benefits of the FDs offered by different institutions. This will help you select the best corporate FD for your financial goals.

To know more about corporate fixed deposits, features, interest rates, and more, read on.

Top Corporate FD interest rates

There are several financial institutions which offer fixed deposits with high interest rates. Here are some of the top corporate FDs and their interest rates:

FD Scheme	Rate of Interest
Bajaj Finance Ltd FD	Up to 8.60%
Shriram Finance FD	Up to 9.20%
Mahindra Finance FD	Up to 8.30%
PNB HFL FD	Up to 8.15%

Corporate FDs to Invest

If you are keen on experiencing the benefits offered by a company fixed deposit, you may be interested in discovering your options in this segment of the financial market. Check out some of the top corporate FD plans you can invest in, along with the company FD rates for the same.

1. PNB Housing Finance

PNB Housing Finance offers a fixed deposit that comes with high safety assurance, as indicated by the AA/Stable rating by CRISIL and AA/Stable rating by CARE. If you want to invest in the fixed deposit plan offered by this housing finance company, check out the company fixed deposit rates you will earn based on the investment tenor.

Plan	Interest Rates (per annum)
Up to ₹5 Crore	1-year FD	2-year FD	3-year FD	4-year FD	5-year FD
Cumulative fixed deposit	7.45%	7.00%	7.85%	7.40%	7.65%
Non-cumulative fixed deposit	7.11% - 7.45%	6.79% - 7.00%	7.58% - 7.85%	7.16% - 7.40%	7.39% - 7.65%

The corporate FD rates on PNB Housing Finance fixed deposits for senior citizens are higher by 0.25% per annum for investments up to ₹1 Crore.

2. Mahindra Finance

Mahindra Finance offers a wide range of corporate fixed deposits for you to choose from and invest in. All the FDs offered by this company bear the IND AAA/Stable rating by India Ratings and CRISIL AAA/Stable by CRISIL.

Here is a preview of the FD instruments and the respective corporate fixed deposit rates for different tenors.

Plan	Interest Rates (per annum)
Up to ₹1 Crore	1-year FD	2-year FD	3-year FD	4-year FD	5-year FD
Dhanvruddhi Cumulative	7.50%	7.75%	7.75%	NA	NA
Dhanvruddhi Non-cumulative	7.00% - 7.50%	7.25% - 7.70%	7.25% -7.75%	NA	NA
Samruddhi Cumulative	7.40%	7.75%	8.05%	8.05%	8.05%
Samruddhi Non-cumulative	7.05% - 7.40%	7.25% - 7.75%	7.50% - 8.05%	7.50% - 8.05%	7.50% - 8.05%

The corporate FD rates for senior citizens are higher by 0.25% per annum on all the above deposits.

3. Bajaj Finance

Bajaj Finance also offers corporate fixed deposits at attractive rates of interest. Having been rated AAA by CRISIL and ICRA, the fixed deposit avenues offered by this company are also safe to invest in.

If you want the advantage of guaranteed returns with minimal risk, check out the corporate FD interest rates for the Bajaj Finance FD before you invest.

Plan	Interest rates (per annum)
Up to ₹5 Crore	1-year FD	2-year FD	3-year FD	4-year FD	5-year FD
Cumulative fixed deposit	7.40%	7.55%	8.05%	8.05%	8.05%
Non-cumulative fixed deposit	7.16% - 7.40%	7.30% - 7.55%	7.77% - 8.05%	7.77% - 8.05%	7.77% - 8.05%

The corporate FD rates on Bajaj Finance fixed deposits for senior citizens are higher by 0.25% per annum.

Top Corporate FDs to Invest in 2023

Apart from the corporate FDs mentioned above, here is a list of other company fixed deposits you can invest in.

Corporate FD issuer	Corporate FD rates	Maximum tenor	Credit Rating
Sundaram Home Finance	9.00% p.a.	60 months	AAA/ (Stable) by ICRA AAA/Stable by CRISIL
LIC Housing Finance	7.50% p.a.	60 months	AAA/Stable by CRISIL
Manipal Housing Finance Syndicate Ltd.	7.75% p.a.	60 months	ACUITE A by ACUITE Ratings
ICICI Home Finance	7.50% p.a.	60 months	AAA/Stable by CRISIL, ICRA, and CARE
HDFC Ltd.	7.35%	120 months	AAA by CRISIL and ICRA

Why you Should Invest in a Corporate FD

There are many reasons to invest in a company fixed deposit. If you are on the fence about choosing this investment option for your portfolio, take a look at the primary reasons to invest in corporate fixed deposits, as outlined below.

Guaranteed Returns on Investment

Corporate fixed deposits offer guaranteed returns on the investment made in the plan. The returns are offered at the company FD rates, which are made known to you even before you invest. This helps you make an informed investment decision.

Unaffected by Market Volatility

Company fixed deposits are not market-linked investments. As a result, they are not affected by market volatility or downturns. This can be particularly beneficial for conservative investors, who prefer low-risk investments, and also for risk-takers who need some stability in their portfolio.

Option to Avail Loans on the FD

You also get the option to avail a loan on your corporate fixed deposit in case of any financial emergency. This will help you keep your investments intact while still meeting your urgent cash requirements.

Suitable for Income Payouts or Capital Appreciation

Corporate fixed deposits offer different kinds of interest payout options like monthly, quarterly, semi-annual or annual interest payments. This can help you earn regular extra income. Alternatively, you can also choose to reinvest the interest and grow your corpus.

Better Returns than Bank FDs

Corporate FD interest rates are generally higher than bank fixed deposit rates by a small margin. This makes them ideal investment options if you are looking for better returns at the cost of a nominal amount of extra risk.

Higher Corporate FD Rates for Senior Citizens

Like bank FD rates, company FD rates for senior citizens are also marginally higher than the rates offered to non-senior citizens. Typically, the rates are higher by around 0.25% per annum on deposits below a certain amount, like ₹1 crore.

Credit Ratings

Company fixed deposits come with credit ratings offered by top credit rating agencies in India like CARE, ICRA and CRISIL. These ratings help you make a more informed decision about which corporate fixed deposit is relatively low-risk.

Option for Premature Withdrawals

Fixed deposit investments offered by companies also give you the option for premature withdrawals without any limits. That said, keep in mind that withdrawing your FD amount before maturity will reduce the overall returns you will earn from your investment. Generally, lenders will levy a penalty for prematurely withdrawing your FD.

Tax on Corporate FDs

The interest that you earn on your corporate fixed deposit is not exempt from tax. It is taxed under the category of ‘Income from Other Sources.’ Here are the key things you need to know about the taxation of your interests from a corporate fixed deposit.

The interest on company fixed deposits is added to your total income and taxed according to your income tax slab rate.
Companies may deduct tax on the interest income earned on your fixed deposits.
The rate of TDS depends on the amount of interest that you earn during the year.
If the interest is over ₹40,000, TDS will be deducted at the applicable rate for non-senior citizens.
For senior citizens, this limit is ₹50,000.
The rate of tax deduction is 10% for Indian residents and 30% for Non-Resident Indians (NRIs).

How to Choose a Corporate FD?

Before selecting a corporate FD, there are some important factors that you must consider. These factors are listed below.

The Reputation of the Organisation

It is critical to research the history of the firm offering the corporate FD. You should check to see if the company has a good track record of satisfied clients.

It will also help you in determining the creditworthiness of the organisation. It is advisable to choose a company with an excellent market reputation in order to avoid a risky investment.

History of Repayment

In terms of payments, an NBFC, financial institution or any other company must have a stellar track record. In order to broaden their consumer base, companies have begun to offer enticing FD interest rates.

However, many companies may default on the payments. This is why you need to ensure that the company you choose has a good history of paying out the interest and the amounts due to their fixed deposit holders.

Credit Ratings

Credit rating agencies like CRISIL, ICRA and CARE rate corporate fixed deposits based on the creditworthiness of the company. FDs with less stable ratings may offer higher interest, but the risk is also correspondingly higher.

It is imperative to note that corporate FDs are not completely risk-free. It is possible that the corporation’s financial situation may influence the situation. In case its condition deteriorates, the fixed deposits may become prone to a default risk. To get a better idea of the safety of the investment you are planning to make, you should check the credit ratings of the company FD you plan to invest in.

Eligibility And Documents Required to open a Corporate FD

Understanding the eligibility and document required to invest in a corporate fixed deposit will enable you to invest seamlessly. In terms of eligibility, corporate FDs are generally available to individuals above the age of 18.

Apart from adult individuals, the following entities can also invest in a corporate fixed deposit:

Sole proprietors
HUFs (Hindu Undivided Families)
Partnerships
Companies
Societies, clubs, family trusts, and associations

While the process of investing in a corporate FD is easy and simple, the documents required are minimal too. Generally, issuers require you to submit the following documents to invest in an FD:

ID Proof
Address Proof
Age Proof
KYC Documents

The list of documents required may change depending on the issuer. Be sure to check out the issuer’s website for a more detailed look into the document requirements and eligibility criteria before investing.

Corporate fixed deposits can make for valuable additions to your portfolio if you plan your investment well. While the risk may be slightly higher than that of bank fixed deposits, company fixed deposits can also be quite safe if you choose highly rated corporate FDs.

The element of guaranteed returns further adds to the safety aspect. You can use the FD monthly interest calculator to determine the interest you would earn monthly on investing in a fixed deposit.

This easy and simple-to-use tool takes your inputs, such as the interest rate, tenor, and deposit amount, and calculates your return on investment instantaneously. At Bajaj Markets, you can find FDs from top issuers and enjoy a hassle-free digital investment process!

Other FD Related Pages
Fixed Deposit	FD Interest Rates	FD Calculator
Bajaj Finance FD Rates	PNB Housing Finance FD Rates	Mahindra Finance FD Rates
Bajaj Finance FD Calculator	PNB Housing Finance FD Calculator	Mahindra Finance FD Calculator
FD Receipt	Flexi Fixed Deposit	NRI FD
Senior Citizen Fixed Deposit	TDS on FD Interest	Premature Withdrawal of FD
OD against FD	Loan against FD	Short Term FD
Benefits of FD	Nbfc FD Rates	Long Term FD
Types of Fixed Deposit	TDS on FD for Senior Citizens	Floating Rates FD

Disclaimer

The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort.

The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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Monthly Interest on FD

A corporate FD is a term deposit held with a company for a fixed period, and it earns returns at a fixed interest rate. This kind of FD program has various options for the investment tenor, allowing you to pick the time duration that best suits your financial goals.

Investing in corporate FDs is a suitable investment alternative if you are looking for higher returns than regular FDs but still do not want to take on high risks.

The exact list of documents required to open a company fixed deposit varies from one entity to another. However, broadly speaking, you need to furnish your proof of identity, like your Aadhaar card, PAN or voter’s ID card. Then, the proof of address, like your Aadhaar card, voter’s ID card or driving licence along with passport size photographs.

Yes, you can easily invest in corporate fixed deposits online by visiting the website of the NBFC or financial company with which you wish to open the FD account and make your investment.

There is a list of people and organisations who can invest in company fixed deposits. These include individuals or NRIs above 18 years of age, members of a HUF, partnership firms, family trusts, corporations, association of Persons (AOP), educational institutions, societies, and clubs.

The minimum tenor for investments in a corporate fixed deposit is typically 1 year, and the maximum tenor is generally 5 years. The tenors may vary slightly depending on the company offering the facility.

Yes, the interest you earn on your investments in company fixed deposits is categorised as ‘Income from Other Sources’ and is taxable accordingly.

TDS deduction depends on the amount of interest received on the initial capital during the year. If the interest generated exceeds ₹40,000 (or ₹50,000 for senior citizens), TDS is deducted from the interest. TDS rates vary in accordance with your residential status. The rate is 10% for Indian residents and 30% for Non-Resident Indians (NRIs).

A bank fixed deposit facility is offered exclusively by banks. On the other hand, corporate fixed deposits are offered by non-banking financial institutions and companies. Also, company FD rates tend to be slightly higher than bank FD rates.

You can withdraw your corporate FD at maturity, either online or offline. If you wish to do this online, you can log into your account on the company’s website and place a request for the withdrawal. Alternatively, you can visit the nearest branch of the company, ask for the FD withdrawal form, fill it in and submit it along with the other documents required, if any.

There are different payout options you can choose from in a company FD, such as monthly, quarterly, half-yearly or annual payouts. Alternatively, you can also choose to reinvest the interest in the company fixed deposit and get paid at maturity.

Before you invest in a corporate fixed deposit, consider the credit rating of the company as provided by CRISIL, CARE or ICRA. Then, assess the company FD rates at which interest is offered on the investment. Finally, check the financial stability of the company offering the FD facility.

Yes, corporate fixed deposits are also called company fixed deposits.

You can withdraw the funds from your corporate fixed deposit before the maturity date too. Simply visit the nearest branch of the company or head to the company’s website, fill out the form required and submit it along with the documents required. You will need the original FD receipt, a cancelled cheque and a request letter stating the reason for withdrawal.