Corporate Fixed Deposits are fixed deposits offered by corporate companies .They work like a regular Bank FD except Corporate FD’s offer a higher rate of interest compare to Bank FD’s ,they carry higher risk .The tenure period of a corporate fixed deposit ranges between 1-10 yrs.

Company Fixed Deposit is the amount deposited by investors for a fixed period of time with a company which offers a fixed rate of return. These deposits are accepted by manufacturing companies, financial institutions and non-banking finance companies, and are governed by Companies Act 58A.

Benefits of Company Fixed Deposits

• Higher interest rate: The rate of interest is 2-4 percent high, as compared to the interest rate offered by banks on fixed deposits.
• Regular income: Depending on the scheme, investors have the option to receive interest at monthly/quarterly/half-yearly/yearly intervals.
• Lock-in period: The minimum lock-in period for most of the schemes is six months, i.e. investors can withdraw their money post six months, anytime.
• TDS: TDS is not applicable if interest earned is equals to or less than 5,000 for a year in a single company.