What is a corporate FD: Similar to bank fixed deposits, corporate FDs provide interest earnings and offer flexibility in choosing the investment amount and duration. Fixed Deposits serve as a popular choice for long-term investments, particularly for older investors aiming for a secure retirement. The tenure period plays a crucial role in determining when investors will receive returns before maturity. In corporate fixed deposits, the tenure typically ranges from six months to 5 years, offering a shorter duration compared to bank fixed deposits.
Corporate FDs are offered by many companies, including Mahindra Finance, Bajaj Finserv, LIC Housing Finance, and PNB Housing Finance. The interest rate on these varies depending on the tenure amongst other things.
Corporate fixed deposits, offered by institutions like non-banking financial companies (NBFCs), are term deposits held at a fixed interest rate for a specified duration. They differ from bank fixed deposits and operate as term investments.