Corporate Fixed Deposits
Deposits with NBFCs and housing finance companies pay 0.5%–1.5% more than banks — how they are regulated, credit ratings and the risks.
Updated 30 September 2026 · 25 banks trackedWhat you need to know
Corporate or company FDs are deposits accepted by deposit-taking NBFCs and housing finance companies (HFCs). They usually pay more than bank FDs, but they are not covered by DICGC insurance, so safety depends entirely on the company’s financial strength — check the credit rating from CRISIL, ICRA, CARE or India Ratings before investing.
Bank FD vs corporate FD
| Feature | Bank FD | Corporate FD |
|---|---|---|
| Regulator | RBI | RBI (deposit-taking NBFCs and HFCs) |
| Deposit insurance | DICGC up to ₹5 lakh | None |
| Tenure | 7 days – 10 years | 12 – 60 months for NBFC deposits |
| Rate | Lower | Typically 0.5% – 1.5% higher |
| Credit rating | Not required | Mandatory investment-grade rating |
| Premature withdrawal | Allowed with penalty | Not allowed in first 3 months; reduced rate thereafter |
| TDS | Yes | Yes |
How to judge a corporate FD
- Prefer AAA or AA+ ratings and check that the rating is stable, not on “watch negative”.
- Check the parent group, capital adequacy and gross NPAs in the latest annual report.
- Do not concentrate more than a small share of your deposits in one company.
- Be wary of rates far above the market — higher rate means higher risk.
- Deposit only via the company’s website or registered agents; get a deposit receipt.
Frequently asked questions
Are corporate FDs insured by DICGC?
No. DICGC covers only banks, including small finance and co-operative banks.
Are corporate FDs safe?
Highly rated deposits from strong groups have a good track record, but defaults have happened in the past. Treat them as higher risk than bank FDs.
Information is for education and comparison. Rates and rules change — confirm with your bank and a tax adviser before investing. FinancePortal is not a financial or tax adviser.