Corporate Fixed Deposits Interest Rates

A Corporate Fixed Deposit (FD) is a savings tool offered by several corporations and Non-banking Financial Companies (NBFCs). These FDs are known to provide a higher rate of interest. But they carry a higher amount of risk compared to fixed deposits issued by banks.  

Before you start investing, compare the corporate FDs offered by different issuers. Look for the minimum deposit, interest rate, and the tenor. This will help you make an informed decision.

Here are the cumulative corporate FD rates offered by some of the leading issuers in India: 

Fixed Deposits are widely used for saving in India, providing a fixed interest rate over a set period. They vary by issuer: Banks, Corporations, and NBFCs. Each with unique features and regulations.

Before you invest in an FD, it is imperative that you conduct some due diligence. Here are some pointers you could follow:

• Comparing Issuers

Compare the interest rates being offered by different issuers. This allows you to stay well-informed and make decisions that maximise your returns.

• Choose Your Tenor

The tenor you select for your FD depends on your financial goals. A long tenor is ideal for long-term financial goals. These include education fees, wedding expenses, and other big-ticket costs. Shorter tenors are ideal for short-term goals. These include travel expenses or purchasing a vehicle. Make the most out of your investment while minimising your risk.

• Payout Frequency

For many, the interest payout frequency could be a crucial factor. Choose between a cumulative and non-cumulative fixed deposit carefully. A cumulative FD will compound your interest. The principal amount and interest earned will be paid out upon maturity. A non-cumulative FD will pay out regularly based on the frequency selected by you.  

• Required Documents

When booking an FD, submit all KYC documents. Keeping these documents handy prevents delays in your booking process. 

• Nomination Form

Fill out and submit the nomination form with correct details. Most issuers provide this option for your convenience. 

• Premature Withdrawal Charges

Understand the charges for premature withdrawals. Some issuers may levy a fee if you liquidate your fixed deposit before the maturity date.

The interest earned from a corporate FD will be taxed as per your income tax slab. If the total interest exceeds ₹5,000 in a financial year, 10% TDS will be deducted from your earnings. However, if your income falls below the threshold, you could submit Form 15/15H. This declaration must be in every fiscal year until the FD matures. 

Corporate FDs offer higher interest rates compared to FDs issued by banks. This may make them an attractive investment avenue for many. However, keep in mind that they come with higher risk and are not covered under the insurance offered by Deposit Insurance and Credit Guarantee Corporation (DICGC). 

 

Carefully consider all factors such as the issuer's credit rating, your risk appetite, and additional charges before investing. Diversify your investment portfolio with corporate FDs on  Bajaj Markets and easily compare issuers to choose the highest interest rates.

The information provided by BFDL is related to the rates provided by Banks and Deposit taking NBFCs as available from public domain and under no circumstances is intended to be source of advice or recommendation of any financial investment advice or endorsement of any sort. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers and use of such 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. Display of any intellectual property along with the related product information does not imply BFDL’s partnership with the owner of the intellectual property of such products and is solely for the purpose of information, unless otherwise provided by BFDL.