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.
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 |
Up to 8.60% |
|
Up to 9.20% |
|
Up to 8.30% |
|
Up to 8.15% |
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.
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.
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.
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.
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 |
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).
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 |
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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.