Corporate Fixed Deposits

Certain companies and NBFCs are also allowed to collect deposits for a fixed period and at fixed rates of interest. Generally, they offer higher interest rates as compared to bank fixed deposits. Also, senior citizens are offered a higher rate of interest. These companies have to follow strict regulations and guidelines stipulated by the RBI and the Ministry of Corporate Affairs. However, as an investor, it is important to look into the safety rating and the background of the company accepting the deposit. 

The advantage of corporate FD is that one can select a suitable term, and the interest rate is known beforehand. Therefore, short-term goal planning becomes easier.