Fixed Interest Rates
Corporate Fixed Deposits
Corporate Fixed Deposits are fixed-income investment instruments offered by Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) to raise funds for their business requirements.
Similar like a bank fixed deposit, an investor deposits a specified amount for a predetermined period and earns interest at a rate fixed by the issuing company. Depending on the terms of the deposit, interest may be paid periodically or at maturity.
Corporate Fixed Deposits can offer investors an opportunity to earn potentially higher interest rates than traditional bank fixed deposits, although the higher return comes with an additional level of credit risk. Premature encashment of deposit is available any time subject to payment of prescribed penalty.
Why Consider Corporate Fixed Deposits?
Defined Investment Tenure
Regular Income Option
Investors may have the option to receive interest monthly, quarterly, half-yearly or annually, or receive the accumulated amount at maturity.
Portfolio Diversification
Corporate FDs can form one component of a broader fixed-income allocation alongside instruments such as bank deposits, bonds, debt mutual funds and other fixed-income securities, depending on the investors risk profile and objectives.
