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Corporate Fixed Deposits are term deposits which are offered by companies when they are in a hurry to raise cash for which they offer attractive fixed interest rates. When investors invest in corporate fixed deposits they are issued deposit certificates of different tenures (1-5) at fixed interest rates.

What are the features of Corporate Fixed Deposit?

• They are offered by a Corporate Company.
• The rate of Interest is pretty high (as compared to Bank FD).
• The tenure ranges between 6 months to 3 Years.
• The risk involved is comparatively high (as compared to Bank FD).
• The medium of investment is certificate of Deposit.

What are the benefits of Corporate Fixed Deposits?

• Higher Returns compared to FD.
• Offers a lot of Flexibility. You can choose from a variety of tenures like monthly, quarterly, half-yearly or yearly.
• Enjoy more liquidity than Bank FDs with lower lock-in period.
• Estimate the risk of the corporate FD via reputed credit rating agency and invest accordingly.

What are the factors that should be considered for choosing corporate FD?

Credit Rating: Opt for high Credit Rating Companies only.
Company Background: Check out the company's financial statements before investing.
Repayment History: Assessing a company's repayment history will help you estimate the company's credibility and stability.