Corporate FDs

Corporate or company fixed deposits (FDs) are investment instruments issued by non-banking financial institutions and companies. They are held over a fixed period at fixed rates of interest. Company or corporate FD rates are usually higher compared to bank FD interest rates.
Mumbai corporate FD investment

Key points include

01

Higher Interest Rates

Usually offer higher interest than bank FDs

02

Fixed Tenure

1. Tenure ranges from 1 year to 10 years.
2. Investors can choose based on their liquidity needs.

03

Periodic Interest Payouts

Interest payout options: Monthly, Quarterly, Half-Yearly, Yearly, or Cumulative (paid on maturity).

04

Premature Withdrawal

1. Allowed, but may come with penalty or reduced interest.
2. Lock-in period varies by company

05

Risk Factor

Carries higher risk than bank FDs as they depend on the financial health of the company.