Fixed Deposits and Corporate FD Advisory in Surat
Fixed deposits are a familiar way to earn a predictable return. Corporate FDs can pay more than bank FDs, but they also carry more risk. We help you compare issuers, read credit ratings and choose with your eyes open.
Also see: Bonds Mutual Funds & SIP Retirement Planning
What is a fixed deposit?
A fixed deposit (FD) is a deposit in which you place a sum of money with a bank or company for a fixed period, and earn interest at a rate agreed at the start. Bank fixed deposits commonly run from 7 days to 10 years, while corporate fixed deposits usually run from one year to five years. In general, the longer you lock your money in, the higher the rate offered.
Banks and companies both accept fixed deposits, but they are not the same. Bank FDs are regulated banking products backed by deposit insurance up to a limit. Corporate FDs are issued by non-banking finance companies (NBFCs), housing finance companies and other corporates, often at higher interest rates, and they carry credit risk and no deposit insurance.
A rate fixed upfront
You know your interest rate when you invest, which makes returns easy to plan. Repayment depends on the issuer paying as promised.
Flexible tenure
Choose a period that matches your goal, from a few months to several years.
Wide choice of issuers
Banks, NBFCs and housing finance companies all offer FDs, with different rates, ratings and terms.
Income or growth
Many FDs let you take interest regularly, or let it compound and collect everything at maturity.
Latest corporate fixed deposit rates
We keep a regularly updated list of corporate FD rates from rated issuers. Contact us for the latest rates, credit ratings and minimum amounts.
Ask us for the latest rates
Corporate FD rates change often. Message us and we will share current rates, credit ratings and minimum amounts from rated issuers.
Bank FD vs corporate FD
A higher rate usually comes with higher risk. This table is a general guide, and each product has its own terms.
| Bank FD | Corporate FD | |
|---|---|---|
| Issued by | Scheduled commercial banks, small finance banks and co-operative banks | NBFCs, housing finance companies and other companies |
| Interest rate | Generally lower | Generally higher, to compensate for the extra risk |
| Safety net | Eligible deposits are insured by DICGC up to ₹5 lakh per depositor per bank, including principal and interest (the limit can change) | No deposit insurance. Your safety depends on the issuer’s financial strength and credit rating |
| Credit risk | Low for large, well-regulated banks | Higher, and it varies widely between issuers |
| Premature withdrawal | Usually allowed, with a penalty | Terms vary. There is often an initial lock-in period and limits on early exit |
| Tax on interest | Added to your income and taxed at your slab rate. TDS may apply | Added to your income and taxed at your slab rate. TDS may apply |
| Often suits | Investors who put safety first and want a simple, insured option | Investors who understand credit risk and can spread money across several strong issuers |
How to choose a fixed deposit safely
Do not pick on the headline rate alone. Here is what we check with our clients before recommending an issuer.
What to check
- The credit rating from a recognised agency such as CRISIL, ICRA, CARE or India Ratings, and that it is current
- The issuer’s financial strength, track record and how long it has taken deposits
- The tenure, and whether it matches when you will need the money
- Whether you want interest regularly (non-cumulative) or at maturity (cumulative)
- Rules on premature withdrawal, lock-in and penalties
- How TDS and tax will apply to your interest
- Spreading your money across more than one issuer instead of putting everything in one
Red flags to avoid
- A rate that is far above what comparable issuers offer
- An unrated issuer, or one whose rating has recently been lowered
- Pressure to decide quickly, or promises of “guaranteed” or “risk-free” returns
- Putting your emergency fund or money you need soon into a corporate FD
- Not receiving a proper application form, terms and a deposit receipt
A simple way to manage risk is an FD ladder: split your money across FDs of different tenures and issuers, so part of it matures regularly and no single issuer holds all of it. We can help you build one.
Estimate what your fixed deposit could earn
Enter your amount, the interest rate and the period. You can also tap a rate in the table above to fill it in automatically.
Your deposit
Estimated result
This is an illustration only. Actual maturity amounts depend on the issuer’s terms, compounding or payout method and any tax or TDS. It does not guarantee any return.
Four simple steps
Understand
We discuss your goal, how long you can invest, and whether you want income or growth.
Shortlist
We compare rated issuers and explain rates, ratings, lock-ins and risks in plain language.
Apply
We help you complete KYC, the application form and payment so you can invest without hassle.
Track
We keep track of maturity dates and help you plan what to do with the money next.
Fixed deposit questions we hear most often
What is a corporate fixed deposit?
A corporate fixed deposit is a deposit you place with a company, usually an NBFC or housing finance company, for a fixed period at an interest rate agreed at the start. These deposits usually pay more than bank fixed deposits, but they are unsecured and carry credit risk, which means you depend on the company’s ability to repay.
Are corporate FDs safe?
They are riskier than bank fixed deposits. The rate is fixed, but repayment depends on the financial strength of the issuer. A high credit rating from a recognised rating agency, a strong track record and spreading your money across issuers can help reduce risk, but cannot remove it.
Are corporate FDs covered by deposit insurance?
No. Deposit insurance under DICGC covers bank deposits up to ₹5 lakh per depositor per bank, including principal and interest. It does not cover NBFC or corporate fixed deposits. The limit can change, so please check the current figure.
What do credit ratings like AAA or AA+ mean?
A credit rating is an independent agency’s opinion of how likely an issuer is to repay on time. AAA is the highest category, followed by AA+, AA and so on. Ratings can be changed over time, so check that the rating is current before you invest.
How is FD interest taxed?
Interest on fixed deposits is generally added to your income and taxed at your slab rate. TDS may be deducted by the issuer above certain limits, and eligible investors can submit Form 15G or 15H to avoid it. Tax rules change, so please speak to a tax adviser about your own situation.
Can I withdraw before maturity?
Premature withdrawal is often possible, but usually with a lower interest rate or a penalty, and many corporate FDs have a lock-in period at the start during which you cannot withdraw. Always check the exit terms in the issuer’s application form before investing.
What is the difference between cumulative and non-cumulative FDs?
In a cumulative FD the interest is added to your deposit and paid together with the principal at maturity. In a non-cumulative FD the interest is paid out at regular intervals, such as monthly, quarterly or yearly, which suits investors who want regular income.
What is the minimum amount for a fixed deposit?
It varies by issuer and scheme. The rates table above shows each issuer’s minimum investment when it is available. Please confirm the current minimum with the issuer or with us before you apply.
Looking for the right fixed deposit?
Speak to a VR Capittal advisor to compare issuers, ratings and rates. The first conversation is free.
Disclaimer: Fixed deposit interest rates and terms are set by the issuers and may change without notice. Corporate fixed deposits are unsecured, carry credit risk and are not covered by DICGC deposit insurance, which applies only to eligible bank deposits up to the prescribed limit. A credit rating is an opinion and not a guarantee of repayment. Rates displayed are for information only and are not an offer or a recommendation. Please read the issuer’s application form and all terms and conditions carefully before investing. The information on this page is general in nature and is not personalised advice.