Corporate Fixed Deposits

Fixed tenure deposits issued by companies and non-banking finance companies.

A corporate fixed deposit is an unsecured borrowing by a company or NBFC at a stated rate for a stated tenure. It is not a bank deposit and is not covered by deposit insurance from the Deposit Insurance and Credit Guarantee Corporation.

Credit rating is the central consideration. Ratings from recognised agencies are disclosed at the time of issue and should be checked, along with the issuer's financial position, before any placement.

Key features

• Fixed interest rate and fixed tenure declared at the time of deposit
• Credit rating disclosed by agencies such as CRISIL, ICRA or CARE
• Cumulative and non-cumulative interest payout options
• Higher rates typically offered to senior citizens
• Premature withdrawal subject to issuer terms and penalty
• Not covered by DICGC deposit insurance