FinanceShiksha

Corporate FDs

Higher interest rates from top-rated companies and NBFCs.

Risk Warning: Corporate FDs are NOT covered by DICGC insurance. Your capital is at risk if the company defaults. Always check credit ratings.

Bank FD vs Corporate FD

Feature Bank FD Corporate FD
Interest Rate Moderate (6-7%) High (7-9%)
Risk Very Low Moderate to High
Safety Net DICGC Cover None (Rely on Rating)
Penalty Lower Strict lock-in periods

How to Select?

1. Check Credit Rating

Only invest in AAA or AA+ rated deposits by CRISIL, ICRA, or CARE. Avoid anything lower.

2. Brand Reputation

Stick to established conglomerates (e.g., Bajaj Finance, HDFC Ltd, Mahindra Finance) with a strong track record.