Corporate deposits are fixed deposits offered by companies (mostly Non-Banking Financial Companies or NBFCs) to investors for a fixed tenure at a specified interest rate. These deposits are not the same as bank FDs and carry a different risk-return profile.
Investors earn regular interest income, and principal is repaid on maturity.
| Feature | Bank FD | Corporate Deposit |
|---|---|---|
| Issuer | Bank | Private company or NBFC |
| Risk Level | Low (regulated by RBI) | Moderate to High (depends on credit rating) |
| Interest Rates | Generally lower | Higher (up to 1.5–3% more than banks) |
| Insurance Coverage | Up to ₹5 lakh per depositor | Not insured |
Corporate deposits offer higher returns, but come with higher credit risk.
Most corporate deposits are open to:
Resident individuals
HUFs (Hindu Undivided Families)
Trusts and corporates
They are best suited for investors seeking regular income and willing to accept slightly higher risk for better returns.
The minimum investment typically starts from ₹10,000 to ₹25,000, depending on the issuer.
Tenures can range from 1 to 5 years, and many companies offer monthly, quarterly, or cumulative interest payout options.
Safety depends on:
Issuer’s financial strength
Credit ratings (look for CRISIL, ICRA, or CARE ratings)
Regulatory compliance (especially with SEBI and RBI if it’s an NBFC)
Yes. The interest earned is fully taxable as “Income from Other Sources” under your income tax slab.
