Corporate Deposits
Corporate Deposits, also known as Company Fixed Deposits (CFDs), are term deposits offered by companies, including manufacturing firms and housing finance ventures. They typically provide higher interest rates compared to bank fixed deposits and are regulated under Section 58A of the Companies Act, 2013.
Key Features of Corporate Deposits
- Higher Interest Rates: Generally offer better returns than bank FDs.
- Fixed Tenure: Ranges from a few months to several years.
- Credit Ratings: Rated by agencies like CRISIL, ICRA, and CARE to indicate risk levels.
- Liquidity: Some corporate FDs allow premature withdrawal, but conditions apply.
- Senior Citizen Benefits: Additional interest rates for senior citizens.
Top Corporate FD Interest Rates (2025)
| Company | Credit Rating | Max FD Rate (p.a.) |
|---|---|---|
| Bajaj Finance | CRISIL FAAA/Stable, ICRA MAA/Stable | Up to 7.75% |
| Mahindra Finance | CRISIL FAAA | 7.40% - 8.05% |
| Shriram Transport Finance | ICRA MAA+ | 7.34% - 8.18% |
| PNB Housing Finance | CRISIL FAAA | Up to 7.70% |
| LIC Housing Finance | CRISIL FAAA | 7.25% - 7.75% |
| HDFC Ltd | ICRA MAAA | Up to 7.45% |
| Sundaram Finance | CRISIL FAAA | 7.25% - 7.53% |
| Muthoot Capital | CRISIL FAAA | 7.50% - 7.75% |
Things to Consider Before Investing
- Credit Rating: Opt for AAA-rated corporate FDs for lower risk.
- Company Stability: Check financial statements and repayment history.
- Liquidity Needs: Some corporate FDs have lock-in periods.
- Tax Implications: Interest earned is taxable.
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