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Fixed Deposit

Fixed deposit are among the most widely used investment choices in India. Like bank FDs, corporate FDs are also term deposit that have fixed terms and fixed interest rates, and they are offered by companies, non-banking finance companies (NBFCs), and housing finance companies (HFCs). Compared to bank FDs, they provide better rates.

Choose from Top Fixed Deposit Schemes

LIC Housing Finance Ltd
Rating
FAAA
Tenure
1-5 Years
Rate of Interest
6.90% - 7.65%
Mahindra Finance
Rating
FAAA
Tenure
1-5 Years
Rate of Interest
7.10% - 8.10%
Shriram Finance
Rating
AA+
Tenure
1-5 Years
Rate of Interest
7.59% - 8.80%
Bajaj Finance
Rating
AAA
Tenure
1-5 Years
Rate of Interest
7.16% - 8.25%
PNB Housing Finance
Rating
FAA
Tenure
1-5 Years
Rate of Interest
6.79% - 7.85%
ICICI Home Finance
Rating
FAAA
Tenure
1-10 Years
Rate of Interest
6.80% - 7.60%
Bajaj Finance Digital FD
Rating
AAA
Tenure
42 Months
ROI Individual
8.28% - 8.60%
ROI Sr. Citizen
8.51% - 8.85%

Why Invest in Corporate FD?

Corporate fixed deposits, also called company fixed deposits, are similar to regular fixed deposit schemes, but they are provided by corporate entities and NBFCs.Similar to banks, the Reserve Bank of India allows certain NBFCs to take deposits at a fixed interest rate and duration, ensuring regulatory oversight. It is crucial for investors to look at solutions that offer steady returns, and corporate fixed deposits stands out for their attractive interest rates.

Fixed deposit interest ratesdon't change even when the market conditions change. You will particularly benefit from this stability if you're seeking steady returns that involves low risk.

Moreover, corporate fixed deposits provide duration flexibility, with options spanning from a few months to several years. This allows you to invest as per your long-term or short-term financial needs.

Similar to Bank FDs, corporate fixed depositsalso offer the following benefits

  • (I) Fixed Interest Rates.
  • (II) Flexible Tenure Options
  • (III) Flexible Interest Payout Frequency.
  • (IV) Additional Interest for Senior Citizens.

Two additional benefits of corporate fixed deposits compared to bank fixed deposits are

  • (I) Interest rates on corporate fixed deposits are typically higher than those offered by bank fixed deposits.
  • (II) The penalty period for withdrawing early is shorter with corporate fixed deposits.

Taxation on Corporate Fixed Deposit Interest Rates

The amount of tax taken from Taxation on Corporate Fixed Deposit Interest Rates

The amount of tax taken from Fixed Deposit interest varies depending on who holds the account

  • (I) For Non-Resident Indians (NRIs), the TDS rate is 30%, plus extra charges, according to Section 195 of the IT Act 1961.
  • (II) For Indian citizens, the TDS rate on interest is 10%, but only if the interest earned is more than Rs. 5000.
  • (III) Senior citizens pay a 10% TDS on FD interest. But if their total income, including FD interest, is below Rs. 5,00,000 per year, they're exempt from tax.

To avoid tax deductions on fixed deposits, submit either Form 15G or 15H to your bank or NBFC at the start of the financial year.

Why should you consider investing in corporate fixed deposits?

Higher Returns

Corporate fixed deposits offer higher interest rates than traditional bank fixed deposits, making them an attractive investment option for those looking to earn higher returns.

Fixed Returns

Corporate fixed deposits offer a fixed rate of return, which means that investors can expect to earn a predetermined amount of interest on their investment. This makes it easier to plan and manage finances.

Diversification

Investing in corporate fixed deposits can provide diversification to an investment portfolio. It can help balance the risk-reward profile of an investor's overall portfolio.

Tenure

Corporate fixed deposits usually have a fixed tenure, which can range from a few months to a few years. This can help investors plan their investments and liquidity needs accordingly.

Credit rating

Companies offering corporate fixed deposits typically have their credit rating evaluated by credit rating agencies, which can provide investors with an indication of the creditworthiness of the company. This can help investors make more informed decisions about their investment.

How can an FD calculator help you ?

An FD calculator is a vital tool for estimating returns, comparing options, and planning finances effectively. By inputting the principal amount, tenure, and fixed deposit interest rates, it provides accurate projections of maturity proceeds, aiding in decision-making. It also helps understand the impact of compound interest, crucial for maximizing earnings. Additionally, it facilitates comparisons between different banks and their offerings, ensuring optimal returns. Overall, an FD calculator empowers investors to make informed decisions, tailor investments to their goals, and achieve financial objectives efficiently.

Fixed Deposit Calculator

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Frequently Asked Questions (FAQs)

A corporate fixed deposit is a type of investment where an investor can deposit a sum of money with a company for a fixed period, at a fixed rate of interest. The interest rate is usually higher than bank fixed deposits.

Corporate fixed deposits are relatively safe, but there is always some degree of risk involved. It is important to do your due diligence and research the credit rating and financial health of the company before investing.

The interest earned on corporate fixed deposits is taxed at the investor's slab rate of income tax. TDS (Tax Deducted at Source) is also applicable on interest earned on corporate fixed deposits.

The minimum investment amount for corporate fixed deposits varies from company to company. It can be as low as Rs. 10,000 and can go up to Rs. 10 crore or more.

The tenure of corporate fixed deposits can range from a few months to several years, depending on the company's policies.

Yes, most corporate fixed deposits can be withdrawn prematurely, but there are prematurity charges for doing so. It is important to check the terms and conditions of the investment before investing.

If the company defaults on payment, the investor may lose their entire investment. This is why it is important to invest in companies with good credit ratings and a track record of financial stability.

Blogs

20 April, 2023

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22 April, 2023

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1 May, 2023

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RR is a Pioneer National Distributor of Corporate Fixed Deposits for the last 35 years. We have a pan-India presence through a network of offices and collection centers.

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All the above terms are subject to change without any prior notice, it is advisable to confirm ROI before making the payment/investment. You are advised to independently verify the data of Investee Company and their rating from the rating agencies, RR is not liable for soundness of any investee company or investments made through it. (Disclaimer)

FD Rates of Top 5 Private Banks

Tenor Bucket Deposit less than 2 Crore
Interest Rate (per annum) **Senior Citizen Rates (per annum)
7 - 14 days 3.00% 3.50%
15 - 29 days 3.00% 3.50%
30 - 45 days 3.50% 4.00%
46 - 60 days 4.50% 5.00%
61 - 89 days 4.50% 5.00%
90 days < = 6 months 4.50% 5.00%
6 months 1 days <= 9 months 5.75% 6.25%
9 months 1 day to < 1 year 6.00% 6.50%
1 year to < 15 months 6.60% 7.10%
15 months to < 18 months 7.10% 7.60%
18 months to < 21 months 7.25% 7.75%
21 months - 2 years 7.00% 7.50%
2 years 1 day to < 2 years 11 Months 7.00% 7.50%
2 year 11 Months - 35 Months 7.15% 7.65%
2 year 11 Months 1 Days <= 3 Year 7.00% 7.50%
3 year 1 days to < 4 Years 7 Months 7.00% 7.50%
4 year 7 Months - 55 Months 7.20% 7.70%
4 year 7 Months 1 day <= 5 Years 7.00% 7.50%
5 year 1 day - 10 years 7.00% 7.50%*

Tenor Bucket Interest rates (per cent per annum) w.e.f. February 17, 2024
Single deposit of less than ₹2 Crores
General **Senior Citizen
7 - 14 days 3.00% 3.50%
15 - 29 days 3.00% 3.50%
30 - 45 days 3.50% 4.00%
46 - 60 days 4.25% 4.75%
61 - 90 days 4.50% 5.00%
91 - 120 days 4.75% 5.25%
121 -150 days 4.75% 5.25%
151 - 184 days 4.75% 5.25%
185 - 210 days 5.75% 6.25%
211 - 270 days 5.75% 6.25%
271 - 289 days 6.00% 6.50%
290 - less than 1 year 6.00% 6.50%
1 year - 389 days 6.70% 7.20%
390 days to < 15 months 6.70% 7.20%
15 months to < 18 months 7.20% 7.75%
18 months to 2 years 7.20% 7.75%
2 years 1 day to 3 years 7.00% 7.50%
3 years 1 day to 5 years 7.00% 7.50%
5 years 1 day to 10 years 6.90% 7.50%
5 Years (80C FD) – Max to 1.50 lac 7.00% 7.50%

Tenor Bucket Interest rates (per cent per annum) w.e.f. March 22, 2023
Single deposit of less than ₹20.0 million
General **Senior Citizen
7 - 14 days 2.75% 3.25%
15 - 30 days 3.00% 3.50%
31 - 45 days 3.25% 3.75%
46 - 90 days 3.50% 4.00%
91 - 120 days 4.00% 4.50%
121 - 179 days 4.25% 4.75%
180 days 7.00% 7.50%
181 days - 269 days 6.00% 6.50%
270 days 6.00% 6.50%
271 days - 363 Days 6.00% 6.50%
364 days 6.50% 7.00%
365 - 389 days 7.10% 7.60%
390 Days(12 months 25 days) 7.40% 7.90%
391 Days - less than 23 months 7.40% 7.90%
23 months 7.30% 7.85%
23 months 1 days - less than 2 Years 7.30% 7.85%
2 years - less than 3 year 7.15% 7.65%
3 year and above but less than 4 years 7.00% 7.60%
4 years and Above - less than 5 years 7.00% 7.60%
5 years - less than or equal to 10 years 6.20% 6.70%

Tenor Bucket Interest rates (per cent per annum) w.e.f. March 22, 2023
Single deposit of less than ₹20.0 million
General **Senior Citizen
7 - 14 days 3.00% 3.50%
15 - 29 days 3.00% 3.50%
30 - 45 days 3.50% 4.00%
46 - 60 days 4.25% 4.75%
61 days < 3 Months 4.75% 5.00%
3 months < 3 months 24 days 4.75% 5.25%
3 months 24 days < 4 months 4.75% 5.25%
5 months < 6 months 4.75% 5.25%
6 months < 7 months 5.75% 6.25%
7 months < 8 months 5.75% 6.25%
8 months < 9 months 5.75% 6.25%
9 months < 10 months 6.00% 6.50%
10 months < 11 months 6.00% 6.50%
11 months - 11 months 24 days 6.00% 6.50%
11 months 25 days < 1 year 6.00% 6.50%
1 year - 1 year 4 days 7.70% 7.20%
1 year 5 days - 1 year 10 days 6.70% 7.20%
1 year 11 days - 1 year 24 days 6.70% 7.20%
1 year 25 days < 13 months 6.70% 7.20%
13 months < 14 months 6.70% 7.20%
14 months < 15 months 7.70% 7.20%
15 months < 16 months 7.10% 7.60%
16 months < 17 months 7.10% 7.60%
17 months < 18 months 7.20% 7.85%
18 Months < 2 years 7.10% 7.60%
2 years < 30 months 7.10% 7.60%
30 months < 3 years 7.10% 7.60%
3 years < 5 years 7.10% 7.60%
5 years to 10 years 7.00% 7.75%

Tenor Bucket Interest rates (per cent per annum) w.e.f. 21st November, 2023
Single deposit of less than ₹2 Crore
General **Senior Citizen
7 days to 14 days 3.25% 3.75%
15 days to 45 days 3.70% 4.20%
46 days to 90 days 4.10% 4.60%
91 days to 120 days 4.75% 5.25%
121 days to 180 days 5.00% 5.50%
181 days to 271 days 6.10% 6.60%
272 days to < 1 year 6.35% 6.85%
1 year 7.25% 7.75%
1 year 1 day to < 18 months 7.50% 8.00%
18 months to < 24 months 7.75% 8.25%
24 months to < 36 months 7.25% 7.75%
36 months to < 60 months 7.25% 8.00%
60 months 7.25% 8.00%
60 months 1 day to <= 120 months 7.00% 7.75%

FD Rates of Top 5 PSU Banks

Maturity Period Interest rates (per cent per annum) w.e.f. February 15, 2023
General **Senior Citizen
7 days to 45 days 3.50% 4.00%
46 days to 179 days 5.50% 6.00%
180 days to 210 days 6.00% 6.50%
211 days to less than 1 year 6.25% 6.75%
1 Year to less than 2 years 6.80% 7.30%
2 years to less than 3 years 7.00% 7.50%
3 years to less than 5 years 6.75% 7.25%
5 years and up to 10 years 6.50% 7.50%

Maturity Period Interest rates w.e.f. February 20, 2023
General **Senior Citizen
7 to 14 days 3.50% 4.00%
15 to 29days 3.50% 4.00%
30 to 45 days 3.50% 4.00%
46 to 60 days 4.50% 5.00%
61 to 90 days 4.50% 5.00%
91 to 179 days 4.50% 5.00%
180 to 270 Days 6.00% 6.50%
271 to 299 days 6.25% 7.75%
300 days 7.05% 7.55%
301 days to less than 1 Year 6.25% 6.75%
1 year 6.75% 7.25%
above 1 year to 339 days 6.80% 7.30%
400 days 7.25% 7.75%
401 days to 2 years 6.80% 7.30%
above 2 year & upto 3 years 7.00% 7.50%
above 3 year & upto 5 years 6.50% 7.00%
above 5 years & upto 10 years 6.50% 7.30%

Note: The FD interest rates are effective as of 12 April, 2024

Tenor Bucket Interest rates w.e.f. November 14, 2022
General **Senior Citizen
7 days to 14 days 4.25% 4.75%
15 days to 45 days 4.50% 5.00%
46 days to 90 days 5.50% 6.00%
91 days to 180 days 5.60% 6.10%
181 days to 210 days 5.75% 6.25%
211 days to 270 days 6.15% 6.65%
271 days & above and less than 1 year 6.25% 6.75%
360 Days 7.10% 7.60%
1 year 6.85% 7.35%
Above 1 year to 400 days 6.85% 7.35%
Above 400 days and upto 2 Years 6.85% 7.35%
Above 2 Years and upto 3 Years 7.25% 7.75%
Above 3 Years and upto 5 Years 6.50% 7.15%
Above 5 Years and upto 10 Years 6.50% 7.50%
Above 10 years (MACT/MACADCourt Order schemes only) 6.25% 6.75%
399 Days (Baroda Tiranga Plus Deposit Scheme) 7.15% 7.65%

Tenor Bucket Interest rates w.e.f. January 18, 2023
General **Senior Citizen
7 Days to 45 Days 4.00% 4.00%
46 Days to 90 Days 5.25% 5.25%
91 Days to 179 Days 5.50% 5.50%
180 Days to 269 Days 6.15% 6.65%
270 Days to less than 1 Year 6.25% 6.75%
1 Year only 6.85% 7.35%
444 days 7.25% 7.75%
Above 1 Year to less than 2 Years 6.85% 7.35%
2 Years & above to less than 3 Years 6.85% 7.35%
3 Years & above to less than 5 Years 6.80% 7.3%
5 Years & above to 10 Years 6.70% 7.20%

Maturity Period Interest rates (per cent per annum) w.e.f. January 10, 2023
General **Senior Citizen
7 days to 14 days 3.00% 3.00%
15 days to 30 days 3.00% 3.00%
31 days to 45 days 3.00% 3.00%
46 days to 90 days 4.50% 4.50%
91 days to 179 days 4.50% 4.50%
180 days to 210 days 5.50% 6.00%
211 days to 269 days 5.50% 6.00%
270 days to less than 1 year 5.75% 6.25%
1 year 6.80% 7.30%
Above 1 Year to less than 2 Years 6.80% 7.30%
2 year 7.25% 7.75%
1 Year to less than 2 Years (except 444 Days) 6.00% 6.50%
444 days 7.05% 7.55%
2 Years to less than 3 Years 6.75% 7.25%
3 Years to less than 5 Years 6.5% 7.25%
5 Years to less than 8 Years 6.00% 6.75%
8 years & above to 10 Years 6.00% 6.75%

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