Corporate FD

Corporate FD

👉 A Corporate Fixed Deposit (FD) is a financial product where companies accept deposits from investors for a fixed tenure at a predetermined interest rate.

It works similar to a bank FD, but instead of a bank, a corporate company (non-banking company) issues the FD.

Why Choose Corporate FD?

• Higher Interest Rates than Bank FDs
• Fixed Returns (No market risk)
• Suitable for conservative investors seeking regular income

Featuers Of Corporate Fixed Deposit

• Higher Interest Rates – Offers higher returns compared to Bank Fixed Deposits.
• Fixed Tenure – Investment is locked in for a fixed period (e.g., 1 year, 3 years).
• Fixed Returns – Investors earn a predetermined interest rate throughout the tenure.
• Credit Rating Important – Investment safety depends on the issuing company’s credit rating.
• Lower Liquidity – Premature withdrawals may be restricted or have penalties.
• No Market Risk – Returns are fixed and not linked to market fluctuations.
• Suitable for Conservative Investors – Ideal for investors seeking regular income with relatively low risk.
• Minimum Investment Amount – Usually requires a minimum investment (e.g., ₹25,000 or $500).
• Regulated by Authorities – Subject to regulations by government bodies (e.g., SEBI in India).