What is Corporate Deposit?

Company Fixed Deposit (corporate FD) are term deposits whose terms and interest rates are predetermined. Like Banks, RBI permits selective Corporates and Non-Banking Financial Companies (NBFCs) to accept deposits for a fixed rate and tenure. The maturities of various company fixed deposits can range from a few months to a few years. At Sharekhan, we offer our investors access to carefully researched corporate fixed deposits which are likely to offer maximum safety to your investments.

Corporate Deposit Offerings

  • Mahindra Finance Limited

           Rating |        Tenure |        Min. Amt.
    CRISIL AAA 1 - 5 Years ₹5000

    Interest

    6.40% - 7.45% p.a.

    Senior Citizen: 0.25% additional


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  • LIC Housing Finance Limited

           Rating |        Tenure |        Min. Amt.
    CRISIL AAA 1 - 5 years ₹15000

    Interest

    6.50 % - 6.90 % p.a.

    Senior Citizen: 0.25% additional


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  • Bajaj Finance Limited

           Rating |        Tenure |        Min. Amt.
    CRISIL AAA 1 - 5 years ₹15000

    Interest

    6.41 % - 6.95 % p.a.

    Senior Citizen: 6.74 % - 7.30 % p.a.


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Key Benefits of Corporate Fixed Deposit

Lower Risk

Corporate Fixed Deposits majorly carry credit risk in case of default of the company. Sharekhan tries to mitigate this risk as it only partners with product providers that offer fixed deposits that are rated as AAA and above by reputed rating agencies.

Independent of Market Volatility

Investments in Corporate Deposits are not subject to market fluctuations, hence the returns are fixed and guaranteed.

Flexibility

The interest payments for corporate fixed deposits are available across different tenures, such as monthly, quarterly, half yearly, yearly, or even upon maturity. Hence, this gives the investors flexibility to plan their investments and choose a tenure basis their preference.

Higher Returns

Corporate Fixed Deposits offer guaranteed returns and the interest rates offered are also better compared to bank FDs.

Higher Rates for Senior Citizens

Corporate fixed deposits (FDs) offer higher rates for senior citizens, benefiting retired individuals who rely on interest income to manage their monthly expenses. They can also enjoy tax benefits, as TDS on FDs is only levied if the interest exceeds ₹50,000 in a financial year.

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