Fixed Deposits have always been the most preferred savings option for Indians. Banks are the biggest issuers of fixed deposits in India. In addition to banks, certain approved companies also offer fixed deposits. These are known as Corporate Fixed Deposits.

These offer fixed returns over different time periods and additional interest rates for senior citizens.

Corporate fixed deposits are one of the safest savings options for those who are averse to market risk and uncertainty.

Features and Benefits:

  • Company Fixed Deposits offer comparatively higher interest rates than banks.
  • Additional / Higher Interest rates for Senior Citizens.
  • A choice between regular Monthly / Quarterly or cumulative pay-out where the principal amount and total interest is paid on maturity.
  • Different tenures are available to choose from as per your investment time horizon.
  • Premature encashment of deposit is available at any time subject to the applicable norms at that time by the company.
  • Low Minimum Deposit amount.


Taxation:
Similar to Bank Fixed Deposits, interest earned on corporate fixed deposits are also taxable as per the income tax slab of the deposit holder. However, the investor has to pay tax only if the annual interest from the deposit exceeds INR 5,000. There is no capital gains tax on these deposits.

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