{"id":4868,"date":"2022-11-04T07:45:02","date_gmt":"2022-11-04T07:45:02","guid":{"rendered":"https:\/\/goldenpi.com\/blog\/?p=4868"},"modified":"2026-02-26T13:44:15","modified_gmt":"2026-02-26T13:44:15","slug":"corporate-fixed-deposits-101-a-primer","status":"publish","type":"post","link":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/","title":{"rendered":"CORPORATE FIXED DEPOSITS : A PRIMER!"},"content":{"rendered":"<p style=\"text-align: center;\"><b>Total Deposits held through Corporate fixed deposits by NBFCs are Rs. 66,443 Cr as reported in September 2021.<\/b><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4906\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091047\/1-1-300x64.jpg\" alt=\"Total Deposits held through Corporate fixed deposits by NBFCs\" width=\"717\" height=\"153\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091047\/1-1-300x64.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091047\/1-1-1024x219.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091047\/1-1-768x164.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091047\/1-1-1170x250.jpg 1170w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091047\/1-1-585x125.jpg 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091047\/1-1.jpg 1389w\" sizes=\"(max-width: 717px) 100vw, 717px\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#What_are_Corporate_Fixed_Deposits\" >What are Corporate Fixed Deposits?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#What_should_you_keep_in_mind_when_choosing_a_company_fixed_deposit\" >What should you keep in mind when choosing a company fixed deposit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#Why_to_invest_in_Corporate_FDs\" >Why to invest in Corporate FDs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#Taxation_process_for_CorporateCompany_FD\" >Taxation process for Corporate\/Company FD<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#Do_Corporate_FDs_carry_higher_risk\" >Do Corporate FDs carry higher risk?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#Credit_Rating\" >Credit Rating<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#How_are_Corporate_Fixed_Deposits_different_from_other_Debt_Instruments\" >How are Corporate Fixed Deposits different from other Debt Instruments?<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#What_is_the_basic_process_of_premature_withdrawal\" >What is the basic process of premature withdrawal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#When_can_a_client_apply_for_premature_withdrawal\" >When can a client apply for premature withdrawal?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#The_Guidelines_of_RBI_that_NBFCs_Should_Follow_for_Launching_Fixed_Deposits\" >The Guidelines of RBI that NBFCs Should Follow for Launching Fixed Deposits:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_are_Corporate_Fixed_Deposits\"><\/span><b>What are Corporate Fixed Deposits?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In India, the most popular form of investing is the fixed deposit. Similar to banks, the RBI allows selected corporations and <a href=\"https:\/\/goldenpi.com\/blog\/financial-matters\/what-is-nbfc-and-what-does-it-signify\/\" target=\"_blank\" rel=\"noopener noreferrer\">NBFCs<\/a> to receive deposits with a set interest rate and term. These are referred to as Company or <a href=\"https:\/\/goldenpi.com\/corporate-fixed-deposits\" target=\"_blank\" rel=\"noopener noreferrer\">Corporate Fixed Deposits<\/a>.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Corporate FDs provide investors with stable, predictable returns in these times of high market volatility and uncertain returns, helping them in securing their financial future. Investors have an option between a pay-out option that provides a steady income and a cumulative option that builds money.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_should_you_keep_in_mind_when_choosing_a_company_fixed_deposit\"><\/span><b>What should you keep in mind when choosing a company fixed deposit?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Safety Ratings<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is important to choose higher-rated corporate FDs depending on their credit rating. Credit Rating shows the credit worthiness of the company i.e. if the company will be able to meet its obligations or not. For instance- If there are 2 companies offering corporate Fixed deposits with different ratings. It is always recommended to choose the one which has a higher rating.<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4893\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04074713\/Screenshot-2022-11-04-at-12.44.01-PM-300x75.png\" alt=\"Safety Ratings by Company Fixed Deposit\" width=\"472\" height=\"118\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04074713\/Screenshot-2022-11-04-at-12.44.01-PM-300x75.png 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04074713\/Screenshot-2022-11-04-at-12.44.01-PM-1024x257.png 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04074713\/Screenshot-2022-11-04-at-12.44.01-PM-768x193.png 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04074713\/Screenshot-2022-11-04-at-12.44.01-PM-585x147.png 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04074713\/Screenshot-2022-11-04-at-12.44.01-PM.png 1074w\" sizes=\"(max-width: 472px) 100vw, 472px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">It is recommended to choose Company A, as per the information given in the above table.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Past Repayment History<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Before making any investment decision it is always suggested to look into the company&#8217;s repayment history whether the company has made the timely payments or not. This feature influences the company\u2019s credit score, reputation, and stability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Instance, if company A has made timely interest or principal payments in the past, whereas company B has defaulted on any of its payments, it is always suggested to opt for Company A, even after paying a lower interest rate. This is because at least there will be an assurity of getting your money back and a less risk attached to it.<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Business Background<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Analyze a company&#8217;s financial statements, management discussion and analysis(MD&amp;A), and other documentation to determine its commercial viability. Apart from credit ratings and the repayment history it is very important to check the background of the company. Checking the background of the company might help you to analyse the financial standing of the company in the market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, company A has a stronger management but its profits are declining from past 5 years as well as the cash flows, whereas Company B doesn&#8217;t have a very strong management but has been growing consistently from past 5 years which is shown in the balance sheet of the company. In such a scenario it is advised to invest in Company B instead of A.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_to_invest_in_Corporate_FDs\"><\/span><b>Why to invest in Corporate FDs?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Get Fixed and Predictable returns <\/b><span style=\"font-weight: 400;\">&#8211; Due to market activities, interest on securities might fall or rise. But with Corporate FDs, interest remains fixed therefore, it would not decrease because of a few factors. For instance, if an investor invested in an corporate FD of 6.25% in 2019 maturing after 2 yrs, would still yield out its interest in 2021. Even After the situation was adverse and the country was hit by covid-19 when all the markets were turning negative.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Compounding Interest<\/b><span style=\"font-weight: 400;\"> &#8211; If an investor has invested in cumulative fixed deposits, he\/she can earn upto 9% to 10% by the end of maturity with the help of compounding. With compounding investors can earn interest on the amount invested as well as on the interest received over it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flexible investment tenure and Interest payment frequency<\/b><span style=\"font-weight: 400;\"> &#8211; To plan long and short term financial plans, there is a wide range of flexible tenure made available to the investors ranging from 1 to 5 years. For example, Bajaj Finance would have a corporate FD that would mature in 1 yr, 2 yr, 3 yr, 4 yr and 5 yr with different rate of interest, whichever suits the need of an investor, they can subscribe to it.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4907\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091123\/2-300x24.jpg\" alt=\"Flexible investment tenure in Corporate FD\" width=\"676\" height=\"54\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091123\/2-300x24.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091123\/2-1024x82.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091123\/2-768x61.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091123\/2-1170x93.jpg 1170w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091123\/2-585x47.jpg 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091123\/2.jpg 1389w\" sizes=\"(max-width: 676px) 100vw, 676px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Liquidity in times of Emergency<\/b><span style=\"font-weight: 400;\"> &#8211; These Corporate FDs can also be used in the times of need to avail loans against it. Also they can be liquidated in times of need.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Taxation_process_for_CorporateCompany_FD\"><\/span><b>Taxation process for Corporate\/Company FD<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It is better to avoid being startled by a high tax bill at the end of the year. It&#8217;s important to comprehend your current tax obligations and how your FD will affect them in the future. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the event that your income exceeds Rs 5,000 in a fiscal year, the interest you earn on Corporate FDs is subject to taxation according to your income tax bracket.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4913\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04092227\/6-300x43.jpg\" alt=\"Taxation process for Corporate FD\" width=\"495\" height=\"71\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04092227\/6-300x43.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04092227\/6-585x85.jpg 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04092227\/6.jpg 754w\" sizes=\"(max-width: 495px) 100vw, 495px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Let&#8217;s use an easy example to better grasp this. For instance, if an investor intends to invest Rs. 100,000 in a CFD with a 5-year term yielding 8% cumulatively and he is subject to a 10% income tax rate. The below table shows the earnings as well as the tax deduction made every year.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4908\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091155\/5-300x122.jpg\" alt=\"Taxation process for Company FD\" width=\"595\" height=\"242\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091155\/5-300x122.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091155\/5-1024x417.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091155\/5-768x313.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091155\/5-585x238.jpg 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091155\/5.jpg 1104w\" sizes=\"(max-width: 595px) 100vw, 595px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Investors can request the TDS waiver if they are an Indian resident and have no taxable income overall by filing Form 15G or 15H. (for senior citizens).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are a few considerations one should make when it&#8217;s time to withdraw money from there fixed deposit:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest earned on maturity:<\/b><span style=\"font-weight: 400;\"> Upon Maturity, before 1 year from the date of commencement<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4909\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091226\/3-300x31.jpg\" alt=\"Interest earned on maturity\" width=\"639\" height=\"66\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091226\/3-300x31.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091226\/3-1024x107.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091226\/3-768x80.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091226\/3-1170x122.jpg 1170w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091226\/3-585x61.jpg 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091226\/3.jpg 1196w\" sizes=\"(max-width: 639px) 100vw, 639px\" \/><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest earned on premature withdrawal (before maturity):<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-4910\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091302\/4-300x47.jpg\" alt=\"Interest earned on premature withdrawal\" width=\"632\" height=\"99\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091302\/4-300x47.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091302\/4-1024x159.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091302\/4-768x120.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091302\/4-585x91.jpg 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091302\/4.jpg 1079w\" sizes=\"(max-width: 632px) 100vw, 632px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Do_Corporate_FDs_carry_higher_risk\"><\/span><b>Do Corporate FDs carry higher risk?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Many investors are worried about losing money if the company they are investing in defaults because corporate FDs are unsecured. It is crucial to remember that all NBFCs and businesses who want to accept deposits must comply by the strict rules and regulations set by the RBI and the Ministry of Corporate Affairs (MCA). Due to this, only a few out of\u00a0 India&#8217;s more than 10,000 NBFCs are permitted to accept public deposits. By complying with these steps, investors&#8217; exposure to risk when investing in corporate Fixed Deposits is minimised.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Credit_Rating\"><\/span><b>Credit Rating<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/goldenpi.com\/blog\/essentials\/bond-market\/credit-rating-agencies\/\" target=\"_blank\" rel=\"noopener noreferrer\">Credit rating<\/a> organisations including CRISIL, ICRA, and India Ratings &amp; Research regularly rate the safety of NBFCs. Moreover, NBFCs that at least have a BBB rating are authorized to raise funds through Corporate FDs. The table below shows the degree of safety for each rating.<\/span><\/p>\n<p style=\"text-align: center;\"><img decoding=\"async\" class=\"aligncenter wp-image-4911\" src=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091336\/credit-300x69.jpg\" alt=\"Credit Rating on Corporate FD\" width=\"704\" height=\"162\" srcset=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091336\/credit-300x69.jpg 300w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091336\/credit-1024x236.jpg 1024w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091336\/credit-768x177.jpg 768w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091336\/credit-1170x270.jpg 1170w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091336\/credit-585x135.jpg 585w, https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/04091336\/credit.jpg 1410w\" sizes=\"(max-width: 704px) 100vw, 704px\" \/><\/p>\n<h1 class=\"post-title single-post-title entry-title\" style=\"text-align: center;\"><span class=\"ez-toc-section\" id=\"How_are_Corporate_Fixed_Deposits_different_from_other_Debt_Instruments\"><\/span><a href=\"http:\/\/How are Corporate Fixed Deposits different from other Debt Instruments?\"><strong>How are Corporate Fixed Deposits different from other Debt Instruments?<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_basic_process_of_premature_withdrawal\"><\/span><b>What is the basic process of premature withdrawal?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The basic process of premature withdrawal of Corporate fixed deposits on an online basis would require the soft copies of the documents stated below:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Submit the original FDR Certificate with all holders signature;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Submit a Canceled cheque;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Request letter from client for premature withdrawal with reason (All Holders Signature).<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"When_can_a_client_apply_for_premature_withdrawal\"><\/span><b>When can a client apply for premature withdrawal?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Investors that meet certain requirements can ask for an early withdrawal. Premature withdrawals are not permitted before three months have passed from the date of deposit. The accompanying rates table will be in effect if a request for an early withdrawal is filed after the \ufb01rst three months have expired.<\/span><\/p>\n<ul>\n<li><b>After 3 months but before 6 months<\/b><span style=\"font-weight: 400;\">: For individual depositors, the maximum interest due shall be 4% annually; for all other depositor categories, there shall be no interest charged.<\/span><\/li>\n<li><b>After 6 months but before maturity date:<\/b><span style=\"font-weight: 400;\"> The interest payable is 1% less than the interest rate applicable during the deposit period. If no rate has been set for that time period, it will be 2% less than the minimum rate at which HDFC and other banks will take public deposits.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"The_Guidelines_of_RBI_that_NBFCs_Should_Follow_for_Launching_Fixed_Deposits\"><\/span><b>The Guidelines of RBI that NBFCs Should Follow for Launching Fixed Deposits:<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A fixed deposit must have a minimum duration of one year and a maximum tenure of five years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The interest rate on fixed deposits must not be higher than the limit set by the Reserve Bank of India. The RBI occasionally changes this interest rate.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An NBFC may only collect as many fixed deposits as is permitted by law; however, this again differs among NBFCs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">An NBFC is required to provide RBI with all pertinent information regarding fixed deposits.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">NBFCs are prohibited from giving their depositors any further gifts or incentives.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Total Deposits held through Corporate fixed deposits by NBFCs are Rs. 66,443 Cr as reported in September 2021. What are Corporate Fixed&hellip;<\/p>\n","protected":false},"author":4,"featured_media":12307,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"no","_lmt_disable":"","footnotes":""},"categories":[150],"tags":[],"class_list":["post-4868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-view"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Corporate Fixed Deposits in India : A PRIMER! - GoldenPi | Blogs<\/title>\n<meta name=\"description\" content=\"Explore lucrative corporate fixed deposits in India with GoldenPi. Maximize your returns with secure and high-yield investment options tailored for you.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporate Fixed Deposits in India : A PRIMER! - GoldenPi | Blogs\" \/>\n<meta property=\"og:description\" content=\"Explore lucrative corporate fixed deposits in India with GoldenPi. Maximize your returns with secure and high-yield investment options tailored for you.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/\" \/>\n<meta property=\"og:site_name\" content=\"GoldenPi | Blogs\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldenpitech\" \/>\n<meta property=\"article:author\" content=\"goldenpitech\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-04T07:45:02+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-26T13:44:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/26134404\/Corporate-Fixed-Deposits_-A-Primer.png\" \/>\n\t<meta property=\"og:image:width\" content=\"731\" \/>\n\t<meta property=\"og:image:height\" content=\"347\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:site\" content=\"@GoldenPiTech\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/\",\"url\":\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/\",\"name\":\"Corporate Fixed Deposits in India : A PRIMER! - GoldenPi | Blogs\",\"isPartOf\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/26134404\/Corporate-Fixed-Deposits_-A-Primer.png\",\"datePublished\":\"2022-11-04T07:45:02+00:00\",\"dateModified\":\"2026-02-26T13:44:15+00:00\",\"author\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722\"},\"description\":\"Explore lucrative corporate fixed deposits in India with GoldenPi. Maximize your returns with secure and high-yield investment options tailored for you.\",\"breadcrumb\":{\"@id\":\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#primaryimage\",\"url\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/26134404\/Corporate-Fixed-Deposits_-A-Primer.png\",\"contentUrl\":\"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/26134404\/Corporate-Fixed-Deposits_-A-Primer.png\",\"width\":731,\"height\":347,\"caption\":\"Corporate Fixed Deposits\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/goldenpi.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"CORPORATE FIXED DEPOSITS : A PRIMER!\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#website\",\"url\":\"https:\/\/goldenpi.com\/blog\/\",\"name\":\"GoldenPi | Blogs\",\"description\":\"All about bonds online in India\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/goldenpi.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722\",\"name\":\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g\",\"caption\":\"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi\"},\"description\":\"With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.\",\"sameAs\":[\"goldenpitech\",\"https:\/\/www.linkedin.com\/company\/goldenpi\/\",\"https:\/\/x.com\/GoldenPiTech\"],\"url\":\"https:\/\/goldenpi.com\/blog\/author\/goldenpi\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Corporate Fixed Deposits in India : A PRIMER! - GoldenPi | Blogs","description":"Explore lucrative corporate fixed deposits in India with GoldenPi. Maximize your returns with secure and high-yield investment options tailored for you.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/","og_locale":"en_US","og_type":"article","og_title":"Corporate Fixed Deposits in India : A PRIMER! - GoldenPi | Blogs","og_description":"Explore lucrative corporate fixed deposits in India with GoldenPi. Maximize your returns with secure and high-yield investment options tailored for you.","og_url":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/","og_site_name":"GoldenPi | Blogs","article_publisher":"https:\/\/www.facebook.com\/goldenpitech","article_author":"goldenpitech","article_published_time":"2022-11-04T07:45:02+00:00","article_modified_time":"2026-02-26T13:44:15+00:00","og_image":[{"width":731,"height":347,"url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/26134404\/Corporate-Fixed-Deposits_-A-Primer.png","type":"image\/png"}],"author":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","twitter_card":"summary_large_image","twitter_creator":"@GoldenPiTech","twitter_site":"@GoldenPiTech","twitter_misc":{"Written by":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/","url":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/","name":"Corporate Fixed Deposits in India : A PRIMER! - GoldenPi | Blogs","isPartOf":{"@id":"https:\/\/goldenpi.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#primaryimage"},"image":{"@id":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#primaryimage"},"thumbnailUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/26134404\/Corporate-Fixed-Deposits_-A-Primer.png","datePublished":"2022-11-04T07:45:02+00:00","dateModified":"2026-02-26T13:44:15+00:00","author":{"@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722"},"description":"Explore lucrative corporate fixed deposits in India with GoldenPi. Maximize your returns with secure and high-yield investment options tailored for you.","breadcrumb":{"@id":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#primaryimage","url":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/26134404\/Corporate-Fixed-Deposits_-A-Primer.png","contentUrl":"https:\/\/d2zny4996dl67j.cloudfront.net\/blogs\/wp-content\/uploads\/2022\/11\/26134404\/Corporate-Fixed-Deposits_-A-Primer.png","width":731,"height":347,"caption":"Corporate Fixed Deposits"},{"@type":"BreadcrumbList","@id":"https:\/\/goldenpi.com\/blog\/market-view\/corporate-fixed-deposits-101-a-primer\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/goldenpi.com\/blog\/"},{"@type":"ListItem","position":2,"name":"CORPORATE FIXED DEPOSITS : A PRIMER!"}]},{"@type":"WebSite","@id":"https:\/\/goldenpi.com\/blog\/#website","url":"https:\/\/goldenpi.com\/blog\/","name":"GoldenPi | Blogs","description":"All about bonds online in India","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/goldenpi.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/7b7afc706617dbf29357675946045722","name":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/goldenpi.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/753eff78609551874c9773d3bee5eeab7bba3aa40f99a8b2405592eed9d9df89?s=96&d=https%3A%2F%2Fd2zny4996dl67j.cloudfront.net%2Fblogs%2Fwp-content%2Fuploads%2F2026%2F01%2F12111941%2FAbhijit-512x512-1-1-150x150.png&r=g","caption":"Abhijit Roy, CEO &amp; CO-Founder - GoldenPi"},"description":"With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.","sameAs":["goldenpitech","https:\/\/www.linkedin.com\/company\/goldenpi\/","https:\/\/x.com\/GoldenPiTech"],"url":"https:\/\/goldenpi.com\/blog\/author\/goldenpi\/"}]}},"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/4868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/comments?post=4868"}],"version-history":[{"count":15,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/4868\/revisions"}],"predecessor-version":[{"id":9886,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/posts\/4868\/revisions\/9886"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media\/12307"}],"wp:attachment":[{"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/media?parent=4868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/categories?post=4868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goldenpi.com\/blog\/wp-json\/wp\/v2\/tags?post=4868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}