Corporate/Company Fixed Deposits 2025

Company FD Schemes Interest Rates 2025

The rate of interest offered under company FD schemes are mentioned in the table below: 

Benefits of Corporate FDs 

The benefits of corporate FDs are given below: 

1. Offer 1.00 to 3.00% higher interest rates than bank FDs. 

1. Flexible tenure options from a few months to several years. 

1. Provide regular income through periodic interest payouts. 

1. Relatively safe when invested in high-rated companies. 

1. Premature withdrawals allowed with penalties. 

1. Loans can be taken against FDs. 

1. Easy to invest with clear terms and transparent returns. 

1. Safety ratings are provided by CRISIL and ICRA. 

1. Offers both cumulative and non-cumulative payout options. 

Features of Corporate FD  

Company Fixed Deposits (Corporate FDs) are investment products offered by non-banking financial companies (NBFCs), housing finance companies (HFCs), and other private corporations to raise capital from the public. These FDs can offer higher interest rates than traditional bank FDs, but they also carry a different risk and benefit profile. Here are the detailed features that make them unique: 

• Credit Ratings for Safety: Corporate FDs are assigned credit ratings by agencies like CRISIL, ICRA, and CARE based on the company’s financial strength and repayment ability. A higher rating (e.g., AAA) implies lower risk, while lower ratings (e.g., BBB or below) signal higher default risk. Always check the Fixed Deposit's credit rating before investing to gauge the issuer's credibility.
•  Premature Withdrawal Terms: While most companies permit early withdrawal of FDs, it typically comes with conditions. A lock-in period of three months is standard, and premature exit may attract penalties or reduced interest rates. Read the fine print to understand the withdrawal rules.
• Loan Facility Against FD: Corporate FDs offer the option to take a loan against your deposit without breaking it. Generally, up to 75% of the FD value can be borrowed, though at an interest rate slightly higher than the FD rate. This feature adds liquidity without disturbing your investment. 
• Taxation on Interest Income: Interest earned on corporate FDs is fully taxable under ‘Income from Other Sources’ and is added to your total income. TDS is deducted if annual interest exceeds Rs.5,000. Always consider post-tax returns when assessing the FD’s real value. 
• Flexible Interest Payout Options: Corporate FDs offer interest payouts at monthly, quarterly, half-yearly, or yearly intervals, depending on the investor's needs. This flexibility is ideal for retirees or those seeking regular income. 
• Cumulative vs Non-Cumulative FDs: You can choose between: 
  Cumulative FDs – Interest is compounded and paid at maturity, ideal for long-term wealth growth. 
  Non-Cumulative FDs – Interest is paid periodically, best suited for those needing a steady income stream 
•  Higher Risk Than Bank FDs: Unlike bank FDs insured up to Rs.5 lakh by DICGC, corporate FDs are unsecured and carry no such guarantee. If the company defaults, recovery is uncertain. Hence, only invest in high-rated FDs and align your decision with your risk appetite. 

Top Factors to Consider When Choosing the Best Corporate FD 

When selecting a corporate fixed deposit (FD), it’s important to look beyond just the returns. Here are key factors to evaluate before choosing a Corporate Fixed deposit: 

1. Check the Credit Rating First: Begin by reviewing the credit rating assigned by agencies like CRISIL or ICRA. These ratings reflect the financial health of the company, and the risk involved.  A high rating ensures greater safety of your investment and should be the first box to tick. 

2. Compare Interest Rates Across Options: Once you've shortlisted financially stable institutions, compare the interest rates they offer. Even a 0.5% difference can lead to significant gains over time. Some NBFCs also provide higher rates for senior citizens or longer tenures-something worth exploring. 

3. Understand Deposit Limits and Flexibility: Finally, check the minimum and maximum deposit limits set by the company. You don’t want to plan for an investment of Rs.25,000 only to find the minimum requirement is Rs.50,000. Confirming this in advance helps you avoid last-minute changes to your investment strategy. 

Eligibility Criteria for Company FD

The following are the eligibility criteria for applying for Corporate FD: 

Documents Required for Corporate or Company FD 

The following are the documents required for applying for Corporate or Company FD: 

1. Driving license 
2. Aadhar card 
3. Voter ID card 
4. Ration card 
5. Passport 

1. PAN card 
2. Valid Employee’s ID 
3. Two colour passport-sized photograph 
4. NREGA Job Card 
5. Government-validated address proof 

1. Valid Employee’s ID 

Top Company Fixed Deposit Features and Interest Rates

The following is the list of some of the significant Company fixed deposit schemes, their features, and interest rates: 

Kerala Transport Development Finance Corporation Fixed Deposit Scheme

Here are the details of Kerala Transport Development Finance Corporation Fixed Deposit Scheme:  

1. The Kerala Government guarantees this FD scheme which significantly reduces the risk while investing.
2. The senior citizens get an additional interest benefit of 0.25% with this scheme.
3. The depositor gets a renewal option with this scheme.
4. The minimum deposit amount is Rs.10,000. No minimum for renewals.(can be incremented in multiples of Rs.1000).
5. No minimum amount requirement for renewals. 

1. Scheme Options: 

1. Money Multiplier Scheme (MMS): Principal and interest paid at maturity, after tax deductions (if applicable). 

1. Periodic Interest Payment Scheme (PIPS): Interest paid at selected intervals (monthly/quarterly), with taxes deducted where applicable. 

1. Application Process: Available online and at Corporation offices.
2. Deposit method: Payments via crossed cheques, demand drafts, RTGS, NEFT, or direct deposit into KTDFC accounts.
3. Deposit Period: Ranges from 1 to 5 years.

LIC Housing Finance Corporate Deposit Scheme

Note: The interest rates mentioned in the table above are for deposits up to Rs.20 crore and effective from 19 June 2025.

ICICI Bank Corporate Fixed Deposit 

Here are the details of ICICI Bank Corporate FD: 

1. The eligible entities for these FDs are government bodies, trusts, capital markets, and businesses. 

1. The minimum deposit amount is Rs.10,000. 

1. The minimum tenure for deposit is seven days. 

1. No interest will be earned if the fund is withdrawn prematurely within seven days of deposit. 

1. Deposits can be made through multiple channels, such as Corporate Internet Banking (CIB), API, InstaBIZ or by visiting the branch. 

1. Interest is paid either monthly, quarterly, or on maturity. 

1. Offers premature or partial withdrawal of funds. 

1. Premature withdrawal is not permitted for non-callable FD. 

1. Provides flexible return options as per your preference. 

1. Interest paid is subject to TDS (Tax Deducted at Source) as per Income Tax slab. 
   Here are the details of LIC Housing Finance Corporate Deposit Scheme: 

Note: The interest rate is subject to change from time to time at the discretion of the bank. The rates are effective from 4 August 2025.

Bajaj Finance Corporate FD 

Here are the details of corporate FDs offered by Bajaj Finance: 

1. These FDs have ratings of CRISIL AAA and ICRA AAA. 

1. Offers periodic payment options. 

1. Does not get affected by market fluctuations. 

1. Offers loan up to 75% of the invested amount. 

1. Premature withdrawal is allowed with minimum penalty. 

1. Interest earned is subject to TDS if the amount is more than Rs.10,000. 
   The rate of interest for cumulative deposit offered under corporate FD scheme is given in the table below: 
   

Note: The rates effective from 11 June 2025.  

Muthoot Capital Services Limited 

Here are the details of Corporate FD offered by Muthoot Capital Services Ltd.

1. The scheme offers monthly, annual, and maturity plans. 

1. The plans offer an additional 0.25% rate of interest to senior citizens. 

1. The scheme ensures guaranteed returns, easy withdrawal, encourages savings habits, and offers flexible interest payout options. 

1. The minimum deposit amount is Rs.1000. 

1. The minimum and maximum deposit tenure is 12 months and 60 months, respectively. 

1. Deposits can be made by Resident Individuals, Non-Resident India (NRIs and Person of Indian Origin (PIOs)would be accepted on non-repatriation basis only), Trust, and HUFs (through Karta). 

1. Depositors can avail themselves of loan against deposit, nomination facility, joint deposit account not more than three members, and others.

The rate of interest for cumulative deposit (monthly scheme) offered under corporate FD scheme is given in the table below: 

Tax Implications on Corporate Deposits

The following are the details regarding tax implications on corporate deposits: 

1. The interest earned is taxable as per Income Tax bracket 
2. Tax of 30% will be imposed on the interest earned if you fall under 30% tax bracket 

1. TDS (Tax Deducted at Source) will be deducted if interest earned exceeds Rs.5000 according to Income Tax Act 
2. TDS can be avoided by submitting Form 15G or Form 15H (normal citizen or senior citizen, respectively) to the non-banking financial institution or bank 

Company Fixed Deposit Interest Rates

The important things that you need to know about the fixed deposit interest rates offered by non-banking finance companies are:

1. The interest rates are determined by the duration of the term deposit.
2. Most companies offer cumulative and non-cumulative interest rates.
3. Some companies offer a slightly higher interest rate for senior citizens.
4. Some companies also offer higher interest rates for employees who open FDs with them.
5. Sometimes the facility of higher interest rates may even be extended to the family of an employee.

Credit card Against Corporate/Company FD

Credit cards do make life easier, but it requires a lot of documentation as compared to an FD. In case you have an FD, you can opt for a credit card against an FD, i.e. a secured credit card. You will continue earning interest on your FD even if you pledge the FD as security for a credit card.

The credit limit for a credit card is low, so you can use it to build a credit score by clearing outstanding balance on time.