Corporate FDs are fixed-term investments provided by non-banking financial companies (NBFCs) or corporates. Investors deposit a lump sum for a specific period and earn interest at a fixed rate. These deposits are governed by regulatory norms and rated by credit agencies for safety.
Types of Corporate FDs
- Cumulative Fixed Deposits : Interest is compounded periodically and paid at the end of the term.
- Non-Cumulative Fixed Deposits : Interest is paid monthly, quarterly, half-yearly, or annually.
Key Features
- Higher Interest Rates : Generally offer better returns than traditional bank deposits.
- Flexible Tenure Options : Choose from a range of durations, typically 1 to 5 years.
- Credit Ratings : Rated by agencies to help assess the creditworthiness of the company.
- Premature Withdrawal : Some deposits allow early exit with conditions and applicable charges.
- Easy Application Process : Minimal paperwork with both online and offline investment options.
- Nomination Facility : Allows the investor to nominate a beneficiary for added security.
Corporate FDs are a smart choice for conservative investors seeking fixed, higher-than-bank returns with moderate risk. Select a company with strong credit ratings and align the deposit with your financial goals. Start your fixed income journey with a Corporate FD—reach out to us to invest today.
