Corporate FD vs Bank FD

To facilitate a comparison between company FD vs bank FD, here is a table outlining the differences between the two:

While corporate FDs differ from bank FDs in many ways, there are also some similarities. These include the following:

1. Guaranteed Returns

While corporate FDs can provide higher returns compared to bank FDs, both of them offer guaranteed returns. As both of them have a fixed interest rate, you get to know the amount you will get at the time of maturity.

2. Higher Rates for Senior Citizens

Like bank fixed deposits, corporate FDs also offer marginally higher interest rates to senior citizens. This makes both types of fixed deposits an ideal investment tool for retired individuals.

3. Flexible Tenor  

As mentioned above, the tenor of corporate FDs and bank FDs can extend up to 5 years and 10 years. Hence, both these types of FDs offer you the flexibility to choose a tenor that best suits your financial requirements.

When comparing a corporate FD vs a bank FD, consider the following points to make a well-informed decision and prioritise your financial well-being.

1. Define the Purpose of Investment

For short-term goals, bank FDs may be an ideal option. Their lock-in periods are shorter and interest rates are competitive, leading to better returns.

2. Evaluate the Market 

Interest rates for bank FDs have declined over the past few years. Lower interest rates may result in returns that are inadequate to combat inflation. So, it is important to do the due diligence before you decide to invest. 

3. Review All Your Options 

Along with interest rates, tenor, and lock-in periods, you must look at all the other benefits, penalties, and attributes of the options available. This helps you compare the returns of corporate FD vs bank FD instruments before zeroing in on an investment avenue.

The bank FD vs corporate FD assessment is a good way to identify value, but remember that both have pros and cons. Regardless of the issuer, fixed deposits are a trusted avenue of investment. 

You can browse for the right FD on Bajaj Markets. With a quick and easy online process, you can not only find the best options but also invest just as easily. 

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.