Corporate deposits or company fixed deposits are term deposits wherein you put your money for a fixed tenure at a fixed rate of interest. They are offered by non-banking financial companies (NBFCs) and other financial institutions. Compared to a regular bank fixed deposit, they fetch a higher rate of interest. The maturities of company FDs range from a few months to a few years.

Benefits of the Company/Corporate Fixed Deposits

Now, let us look at the main advantages of investing in the best corporate FDs:.

Flexibility of tenure:

Similar to Bank FDs, Corporate FDs also offer the flexibility of tenure ranging from 12 to 60 months for which you can remain invested. So, if you are saving for a short-term goal, you can invest for one year. If you are looking to build a decent corpus, you can invest for five years. .

Assured returns:

As we learnt earlier, the best company FDs enjoy higher ratings from notable credit rating agencies. Most companies offering corporate deposits are certified with CRISIL's FAAA/Stable rating and ICRA's MAAA/Stable rating. These are considered as some of the highest safety ratings offered in the industry in terms of timely payment of principal and interest. A company with a high credit rating is likely to guarantee assured returns on your investment regardless of the market fluctuations.

Higher interest rates:

Compared to Bank FD rates, corporate FD rates are higher. Let's look at the table below to compare the company FD rates offered by Bajaj FinServ with Bank FD rates offered by SBI.