Fixed Deposits

What is Company Fixed Deposit?

Company Fixed Deposit (corporate FD) is similar to a Fixed deposit, but instead of a bank, corporate deposits are held with NBFCs (Non Banking Financial Companies).

important Factors to consider

Credit Rating

Opt for higher-rated corporate FDs based on its credit rating which indicates the underlying risk of the company.

Company Background

Assess a company’s business viability by referring to its Financial Statements, Management Discussion and Analysis (MD & A).

Repayment History

Companies repayment history helps to determine a company's credit score, credibility and stability.

Benefits of Corporate FDs

Higher returns

They provide slightly better returns the traditional bank FDs.

Flexibility

You may choose tenures as per your need (monthly, quarterly, half yearly, annually).

Liquidity

Corporate FDs usually have a lock in period of 3 months after which they can be redeemed at any point.

Lower Risk

Corporate FDs which are backed by reputed rating agencies have a low risk.