Corporate FD’S

Corporate FD'S

Equity Funds that mimic the Index with Lowest Expense Ratio.

  




    Company Fixed Deposit (corporate FD) is a term deposit held for a fixed amount of time at a fixed interest rate. Both financial and nonbanking financial companies (NBFCs) offer company fixed deposits. Various companies’ fixed deposits have maturities that can range from a few months to a few years.

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    Benefits of Corporate FD

    HIGHER RETURNS

    When compared to bank fixed deposits, the returns on corporate FDs are significantly higher.

    FLEXIBILITY

    You have the option of choose monthly, quarterly, half-yearly, or annual Corporate FDs, so you may adjust your investment to meet your specific needs.

    LIQUIDITY

    Get the advantage of higher liquidity with Corporate Fixed Deposits, which also have a shorter lock-in term than Bank Fixed Deposits.

    LOWER RISK

    Take advantage of the reduced risk that comes with investing in Corporate FDs that are endorsed by recognized rating agencies.

    How Do Corporate FD Works?

    Customers give money to corporations in the form of Fixed Deposits, which promise consistent returns over a predetermined amount of time and come in a variety of currencies.

    Features of Corporate FD

    GUARANTEED RETURNS

    Top companies that offer FDs are rated by credit rating agencies like CRISIL and ICRA, which is a measurement of their credibility and effectiveness as an investment instrument to guarantee returns despite market volatility.

    PREMATURE WITHDRAWL

    A depositor may also request a withdrawal from the corporation before the maturity date. Certain types of public deposits, however, are locked in for a period of three months.

    INVESTMENT MODE

    Investing in corporate fixed deposits can be done through the use of certificates of deposit as a means of making financial transactions.

    Who issues Corporate FD?

    A fixed deposit is one of the most common forms of investment. Because they offer guaranteed profits and have numerous features that make investing simple. FDs are generally given by banks or Non-Banking Financial Institutions (NBFCs).

    DIFFERENCE CORPORATE FD BANK FD
    Rate of Interest Corporate FDs have higher interest rates than bank FDs. Corporate FDs offer compounding returns from cumulative interest pay-outs. Bank fixed deposits pay a lower interest rate than those offered by corporations.
    Tenure Corporate FDs typically have tenure ranging from around six months to five years. The tenure of bank fixed deposits can range from around one week to several years.
    Premature Withdrawal If you withdraw funds from your corporate FD before 3 to 6 months, you won't be charged interest. After 6–12 months, 2% interest is charged. Banks charge around 2% interest on funds that are withdrawn prematurely.
    Tax Benefit Corporate FDs do not have any tax benefits. Bank FDs with a lock-in period of 5-10 years can be tax-saving tools.
         

    FAQ

    Corporate fixed deposits pay a higher interest rate than bank fixed deposits. Company fixed deposits have shorter lock-in periods and more flexible interest payments.

    The following people and organisations are eligible to invest in corporate fixed deposits:

    • A resident individual or NRI above 18 years of age
    • Members of a HUF (Hindu Undivided Family)
    • Partnership firms
    • Family trusts
    • Corporations
    • The Association of Persons (AOP)
    • Educational institutions
    • Societies 
    • Clubs

    Investments in a corporate fixed deposit usually have a minimum term of 1 year and a maximum term of 5 years. The tenure may vary slightly depending on the company offering the facility.

    Yes, interest earned from company fixed deposit investments is considered "income from other sources" and is subject to taxation.

    How you can Apply for Corporate FD through Swaraj Finpro

    It is quite easy to invest in Corporate FD through Swaraj FinPro
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