Corporate FDs FAQs
Common questions about Corporate FDs, answered in plain language.
What is a corporate FD?
A fixed deposit placed with a company — usually an NBFC or housing finance company — rather than a bank. It pays a fixed rate of interest for a fixed tenure. Read more on our Corporate FDs page.
Are corporate FDs covered by deposit insurance?
No. The DICGC insurance that covers bank deposits does not apply to corporate FDs. Repayment depends on the company’s financial strength, so check the credit rating and spread your deposits across issuers.
Where can I see current rates?
Rates change often and differ by issuer and tenure. Contact us for the latest rates before booking.
Can I break a corporate FD early?
There is usually a three-month lock-in. After that, premature withdrawal is generally allowed at a reduced interest rate. Terms vary by issuer.
Is TDS deducted on corporate FD interest?
Yes, if the interest paid by a company in a financial year crosses the threshold set under the Income-tax Act. Eligible investors can submit Form 15G or 15H to avoid TDS.
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