Corporate/Company Fixed Deposits in India 2026 - Rates & Features
A Company Fixed Deposit (Corporate FD) is a fixed investment offered by companies to investors with assured returns over a fixed tenure. Unlike bank FDs, corporate FDs often provide higher interest rates, making them attractive for investors seeking better yields.
What is a Company Fixed Deposit (Company FD)?
Corporate Fixed Deposits (FDs) are investment options offered by firms and NBFCs (Non-Banking Financial Institutions) to raise funds, providing investors with fixed interest returns over a chosen tenure. They typically offer higher returns than bank FDs, with flexible durations and lump-sum investments and on maturity the depositors erans the principal amount along with the interest.
Company FD Schemes Interest Rates 2026
The rate of interest offered under company FD schemes are mentioned in the table below:
Company Name | General Public Interest Rate Range (p.a.) | Senior Citizen Rate Range (p.a.) |
ICICI Home Finance | 6.75% to 7.10% | 7.10% to 7.45% |
Kerala Transport Development Finance Corporation Ltd. | 6.35% to 6.45% | 6.85% to 6.95% |
LIC Housing Finance Ltd. | 6.60% to 6.90% | Contact the bank |
Mahindra Finance | 6.60% to 7.00% | 7.00% to 7.25% |
Muthoot Capital Services Limited | 7.90% to 8.95% | 8.15% to 9.20% |
PNB Housing Finance Ltd. | 6.60% to 6.90% | 6.85% to 7.15% |
Shriram Finance | 7.00% to 7.60% | 7.50% to 8.10% |
Sundaram Finance | 6.70% to 7.00% | 7.20% to 7.50% |
Note: The rate of interest mentioned above is as of 7 January 2026 and is subject to change and the discretion of the lender.
Why choose a Company Fixed Deposit?
Company fixed deposits are a great choice for people looking for a safe way to invest their money with a guaranteed return in the short to medium term. Company fixed deposits typically offer higher interest rates compared to regular bank fixed deposits. Therefore, company fixed deposits are a good option for anyone looking to build their savings over time.
Prior to investing in company fixed deposits, it is essential that you properly research the financial state of the company, interest rates, and the length of time the company is offering its deposits. This will help you determine which fixed deposit option is the best choice to meet your financial goals.
Benefits of Corporate FDs
The benefits of corporate FDs are given below:
- Offer 1.00 to 3.00% higher interest rates than bank FDs.
- Flexible tenure options from a few months to several years.
- Provide regular income through periodic interest payouts.
- Relatively safe when invested in high-rated companies.
- Premature withdrawals allowed with penalties.
- Loans can be taken against FDs.
- Easy to invest with clear terms and transparent returns.
- Safety ratings are provided by CRISIL and ICRA.
- Offers both cumulative and non-cumulative payout options.
Features of Corporate FD
The features of corporate fixed deposit have been discussed in detail in the table below:
Feature | Details |
Credit Ratings for Safety | Assigned by agencies like CRISIL, ICRA,CARE. Reflect the company’s financial health and repaymentability. AAA rating =low risk; BBB or below = higher default risk. Always check the credit rating before investing to assess issuer credibility. |
Premature Withdrawal Terms | Most companies allow early withdrawal, but conditions apply. A typical lock-in period is 3 months. Premature exits may lead to penalties or lower interest rates. It is important to read the fine print to avoid surprises. |
Loan Facility Against FD | Allows you to borrow against your FD without breaking it. Usually up to 75% of the FD value can be borrowed. The interest rate on loan is slightly higher than the FD rate. Provides liquidity while keeping your investment intact. |
Taxation on Interest Income | Interest is fully taxable under ‘Income from Other Sources’. TDS applies if annual interest is more than Rs.5,000. Always calculate post-tax returns to understand the FD’s real value. |
Flexible Interest Payout Options | Interest can be paid monthly, quarterly, half-yearly, orannually. Useful for retirees or those seeking regular income. Provides flexibility to match personal cash flow needs. |
Cumulative vs Non-Cumulative FDs | Cumulative FDs: Interest is compounded and paid at maturity, suitable for long-term wealth growth. Non-Cumulative FDs: Interest is paid periodically, ideal for those needing steadyincome. Choice depends on investment goals and income requirements. |
Higher Risk Than Bank FDs | Corporate FDs are unsecure, unlike bank FDs insured up to Rs.5 lakh by DICGC. If the company defaults, recovery is uncertain. Only invest in high-rated FDs and match investment to your risk appetite. |
Top Factors to Consider When Choosing the Best Corporate FD
When selecting a corporate fixed deposit (FD), it’s important to look beyond just the returns. Here are key factors to evaluate before choosing a Corporate Fixed deposit:
1. Check the Credit Rating First: Begin by reviewing the credit rating assigned by agencies like CRISIL or ICRA. These ratings reflect the financial health of the company, and the risk involved. A high rating ensures greater safety of your investment and should be the first box to tick.
2. Compare Interest Rates Across Options: Once you've shortlisted financially stable institutions, compare the interest rates they offer. Even a 0.5% difference can lead to significant gains over time. Some NBFCs also provide higher rates for senior citizens or longer tenures-something worth exploring.
3. Understand Deposit Limits and Flexibility: Finally, check the minimum and maximum deposit limits set by the company. You don’t want to plan for an investment of Rs.25,000 only to find the minimum requirement is Rs.50,000. Confirming this in advance helps you avoid last-minute changes to your investment strategy.
4. Liquidity options: Before investing in a corporate or company fixed deposit scheme, know well about the withdrawal terms and conditions.
5. Taxation: Understand the tax implication of investing in corporate FD if you fall under a high tax bracket.
Eligibility Criteria for Company FD
The following are the eligibility criteria for applying for Corporate FD:
Who can apply |
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Age |
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Documents Required for Corporate or Company FD
The following are the documents required for applying for Corporate or Company FD:
- PAN card
- Valid Employee’s ID
- Two colour passport-sized photograph
- NREGA Job Card
- Government-validated address proof
- Valid Employee’s ID
Top Five Company Fixed Deposit Features and Interest Rates
The following is the list of some of the significant Company fixed deposit schemes, their features, and interest rates:
1. ICICI Home Finance Ltd. Fixed Deposits
ICICI Home Finance Ltd. offer a secure investment option with stable returns for both general and senior citizen investors:
- Tenure Range: 1 year to 10 years
- Interest Rates (General Public): 6.75% – 7.10% p.a.
- Interest Rates (Senior Citizens): 7.10% – 7.45% p.a.
- Credit Rating: AAA/Stable by CRISIL, AAA/Stable by ICRA and AAA/Stable by CARE (it indicates the highest degree of safety with very strong capacity for timely payment of interest and principal)
The interest rate of ICICI Home Finance Ltd. for Fixed Deposits scheme is listed in the table below:
Tenure | General Public | Senior Citizen |
1 year to less than 2 years | 6.75% | 7.10% |
2 years to less than 3 years | 6.85% | 7.20% |
3 years to less than 4 years | 6.90% | 7.25% |
4 years to less than 5 years | 7.00% | 7.35% |
Note: The interest rate is subject to change from time to time at the discretion of the bank. The rates were updated on 1 September 2025.
2. Kerala Transport Development Finance Corporation Ltd.
Kerala Transport Development Finance Corporation Ltd. offers a secure fixed deposit investment option with attractive returns for both general and senior citizen investors, backed by a government guarantee:
- Tenure Range: 1 year to 5 years
- Interest Rates (General Public): 6.35% – 6.45% p.a.
- Interest Rates (Senior Citizens): 6.85% – 6.95% p.a.
- Government Guarantee: The repayment of fixed deposits (both principal and interest) up to Rs.4,500 crore is guaranteed by the Government of Kerala, providing an added layer of safety to depositors.
The interest rate of for the Fixed Deposit schemes is listed in the table below:
Tenure | General Public | Senior Citizen |
1 year | 6.35% | 6.85% |
2 years | 6.45% | 6.95% |
3. LIC Housing Finance Ltd
LIC Housing Finance Ltd. offers a dependable fixed deposit investment option with steady returns for both general and senior citizen investors:
- Tenure Range: 1 year to 5 years
- Interest Rates (General Public): 6.70% – 6.90% p.a.
- Interest Rates (Senior Citizens): Additional 0.25% p.a. interest rate over and above the regular fixed deposit rates.
- Credit Rating: LIC Housing Finance Ltd. has been accredited with a credit rating of AAA/Stable by CRISIL, indicating a very strong capacity for timely payment of interest and principal and the highest degree of safety for depositors.
The interest rate of LIC Housing Finance Ltd. Fixed Deposit schemes up to Rs.3 crore is given as follows:
Term | General Public |
1 Year | 6.70% |
15 Months | 6.75% |
18 Months | 6.75% |
2 Year | 6.80% |
3 Year | 6.85% |
5 Year | 6.90% |
Note: The above rates were updated on 19 June 2025 and are subject to change from time to time at the discretion of the bank.
4. Mahindra Finance
The company offers a reliable fixed deposit investment option with competitive returns for both general and senior citizen investors:
- Tenure Range: 1 year to 5 years
- Interest Rates (General Public): 6.60% – 7.00% p.a.
- Interest Rates (Senior Citizens): Additional 0.25% p.a. under the Samruddhi Cumulative Scheme and additional 0.10% p.a. under the Dhanvruddhi Cumulative Scheme
- Credit Rating: AAA/Stable by India Ratings and AAA/Stable by CRISIL. These ratings indicate the highest degree of safety with very strong capacity for timely payment of interest and principal.
The interest rate offered by Mahindra Finance for Fixed Deposits Samruddhi and Dhanvruddhi Schemes is given as follows:
Samruddhi Scheme | Dhanvruddhi Scheme | ||
Tenure | Rates for General Public (p.a.) | Tenure | Rates for General Public (p.a.) |
1 year | 6.60% | 15 Months | 6.75% |
2 years | 7.00% | 30 Months | 7.00% |
3 years | 7.00% | 42 Months | 7.00% |
4 years | 7.00% |
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5 years | 7.00% |
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5. Muthoot Capital Services Ltd
Muthoot Capital Fixed Deposits offer a safe and flexible investment option with attractive returns for both general and senior citizen investors:
- Tenure Range: 1 year to 5 years
- Interest Rates (General Public): 7.90% – 8.95% p.a.
- Interest Rates (Senior Citizens): 8.15% – 9.20% p.a.
- Credit Rating: A+/Stable by CRISIL (it indicates adequate safety for timely payment of interest and principal)
Given below are the applicable FD rates offered by Muthoot Capital Services Ltd:
Tenure | General Public | Senior Citizen |
1 Year | 7.90% | 8.15% |
2 Year | 8.65% | 8.90% |
3 Year | 8.95% | 9.20% |
4 Year | 8.75% | 9.00% |
5 Year | 8.50% | 8.75% |
Credit card Against Corporate/Company FD
Credit cards do make life easier, but it requires a lot of documentation as compared to an FD. In case you have an FD, you can opt for a credit card against an FD, i.e. a secured credit card. You will continue earning interest on your FD even if you pledge the FD as security for a credit card.
The credit limit for a credit card is low, so you can use it to build a credit score by clearing outstanding balance on time.
Best Corporate/Company FD Schemes 2025
FAQs on Company Fixed Deposit
- What is the difference between a bank FD and a company FD?
In terms of differences, both are FD accounts and offer the same features. Bank FDs are generally regarded as safer and pay less interest rates.
- What is the basic process of premature corporate FD withdrawal?
But the minimum deposit term may vary depending on the terms and conditions of the company.
- What is the minimum tenure for a company FD?
The minimum tenure of a company FD is one year or 12 months.
- Are corporate FDs and company FDs the same?
Yes, corporate and company FDs are the same.
- Are FD receipts issued for corporate FDs?
Receipts may be issued to those who have applied for an FD offline/by visiting the branch.
- Are senior citizens eligible to get a higher interest rate?
Yes, in most cases. Senior citizen rates are higher than usual rates but it may vary depending on the company policies.
- Is TDS applicable even for such FDs?
Yes. TDS (Tax Deducted at Source) is applicable for corporate FDs if the interest earned is more than Rs.5000, as per the Income Tax Act.
- How is interest paid to the deposit holder?
Interest payments will be credited to the bank account of the customer electronically as per the chosen frequency of interest payment.
- When can the client apply for a premature corporate FD withdrawal?
Premature withdrawal of corporate FD is allowed at any time depending on certain policies of the financial institution. In some cases, penalty may also be levied for withdrawing FD balance prematurely.
- Can you apply for a company FD online?
Visit the company’s or NBFC’s website and submit KYC (Know Your Customer) documents to purchase the company FD. KYC documents include proof of identity, proof of address, latest passport photograph, and copy of signature.
- Who regulates the corporate FDs?
Corporate fixed deposit schemes are regulated by the Reserve bank of India (RBI) and National Housing Bank, if issued by NBFCs (Non-Banking Financial Institutions) and HFCs, respectively.
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